Want to end high inflation in 2022?
Uniting to end the labor shortage will slow down MedTech Industry price increases.
We need to work together to increase the active labor workforce for our industry.
Anyone watching the news knows we are living in one of the highest rates of inflation in 40 years. This is happening across industries and geographies within the USA.
Anyone running a MedTech company is living how real this inflation challenge has become. Cost increases from suppliers are a regular occurrence while labor continues to be more difficult to find.
If one begins to seriously analyze the root cause of inflation, it’s the labor shortage for two major reasons:
Lack of labor makes it difficult to produce products which puts the supply and demand curve out of whack – and this leads to price increases.
The need for labor leads to wage increases across job functions.
This understanding leads to the question: What is the root cause of the labor shortage?
Everyone studying this issue will readily agree the main factor in the labor shortage is work force participation. It’s currently at the lowest levels in decades.
What can we do collectively to increase workforce participation? We argue it’s three main factors including (1) diversity inclusion; (2) retiring workforce; and (3) the blame game for unvaccinated workers.
Addressing these issues directly:
Diversity inclusion: It’s clear that historically the MedTech industry hasn’t been active in encouraging workforce diversity. We believe it’s now beginning to be addressed but we all need to do more. As people of all backgrounds begin to feel comfortable (and wanted) in various MedTech environments, then we’ll see additional workforce participants that will help us grow in the right ways.
Retiring workforce: For various reasons, many people who are highly capable of contributing to our labor pool are simply saying “enough” and retiring. We need to proactively invite this group of active (and productive) potential workforce participants back onto the labor team.
The unvaccinated: While we understand this group of people may be controversial, we state (as vaccinated – and boosted MedTech writers) that we’re now “shooting our collective industry in the wallet” by blaming and disenfranchising this group of individuals at this stage of the COVID-19 pandemic. As a starting point, the more we attack the unvaccinated, the more they will defend and dig into their positions. This leaves them as outcasts and less willing to be available – should we even be smart enough to ask them to return to work. Secondly, if you follow the science (and we should all follow the science and not the politics), the unvaccinated have more to fear from vaccinated individuals than the other way around. Yet, many politicians and some of the collaborating media make it sound like it’s the reverse. This needs to stop. We need this group actively involved in our society and our workforce.
In summary, if we work together to increase the active labor workforce for our industry, we will begin to reduce inflation as the supply will once again be available to meet demand. It’s not that complicated. Yet, somehow, our politics of today make it difficult. We welcome you to join us in working to make a change for MedTech productivity and inflation moderation in 2022.
ABOUT THE AUTHORS: CEO Florence Joffroy-Black is a long-time MedTech M&A and marketing expert. She can be reached at florencejblack@medworldadvisors.com. Managing Director Dave Sheppard is a former medical OEM Fortune 500 executive and an experienced MedTech M&A professional. He can be reached at davesheppard@medworldadvisors.com.
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