A new report on Ireland’s medical device manufacturing sector has found that access to a skilled workforce, economic uncertainties, and sector growth are among the chief concerns for sector participants.
Conducted by trade body Irish Medtech, the report findings were based on responses to an online survey by 800 senior business leaders.
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Attracting and retaining a quality workforce was cited by 63% of respondents as a major challenge, with labour costs and housing for employees as key associated concerns at 72% and 67% respectively.
The report found business sentiment to be variable. Eight in ten medtech businesses made a positive assessment of Ireland’s current medical device manufacturing environment, but 33% viewed weaker global growth as the biggest challenge faced. Irish Medtech said the sentiment may explain why 33% highlighted a greater focus on business expansion and 17% towards developing in new markets as priorities for 2025.
While concerns remain for the sector in Ireland, there is plenty of reason for optimism. With 54% of survey respondents actively integrating AI-powered initiatives and 67% planning to expand existing AI initiatives, Irish Medtech highlighted that the EU’s €200bn ($216bn) investment fund, including €20bn earmarked for AI gigafactories, represented a “unique opportunity” for Ireland to strengthen its position as a leader in advanced manufacturing and AI moving forward.
Four pillars for sustained growth and development
To address the concerns and expectations identified in the report, Irish Medtech director Eoghan Ó Faoláin called on the national government to focus on four key pillars to ensure sustained growth and development.
Under health and patient access, Ó Faoláin encouraged the implementation of the European Health Data Space (EHDS), an EU regulation intended to establish a common framework for the use and exchange of electronic health data across the EU, and the expansion of clinical research capabilities.
Regarding enterprise and innovation, along with sustainability and environmental issues, he called on the government to “embrace” advanced manufacturing, support a circular economy, and invest in sustainable infrastructure.
To meet the foremost concerns reflected in the report’s findings around talent, the final pillar surrounded education, skills and talent, with the government advised to support apprenticeship programmes, “promote lifelong learning”, and advance gender leadership in the sector.
“As global economic dynamics shift, Ireland’s strong domestic demand for infrastructure, goods, and services provides a foundation for resilience,” said Ó Faoláin.
“Strategic alignment with EU initiatives such as the Competitiveness Compass, investment in AI-driven technologies, and proactive workforce development will be key to sustaining long-term growth.”
Medical device manufacturing’s key role in Ireland’s economy
One of the world’s top five medtech manufacturing hubs, Ireland competes against US hubs such as those in California and Massachusetts and currently manufactures 80% of global stents, 75% of global orthopaedic knee production, and 25% of injectable devices for diabetics.
Last year, medtech giant Abbott opened a new manufacturing facility in Kilkenny, Ireland, which is set to have the world’s highest production of sensors used in the company’s continuous glucose monitoring (CGM) devices. Last month, GE HealthCare revealed plans to invest $138m to expand its contrast media fill and finish manufacturing site in Carrigtohill, Cork.
According to Irish Medtech, the medical devices workforce in Ireland is projected to reach 56,000 by 2028, with the sector forecast to contribute around $1.76bn to Ireland’s economy by 2029.
Medical device manufacturing is a key contributor to Ireland’s economy. While the event of any trade tariffs being imposed on Ireland by the Trump administration is hard to predict, and more so given the fact President Trump has already threatened and then walked back the prospect of tariffs on several global trading partners since taking office in January, research suggests they would have a significant impact on the wider Irish economy.
A recent model by Ireland’s Economic and Social Research Institute (ESRI) found that potential tariffs between 10% and 25% could lead to the levels of gross domestic product (GDP) and modified domestic demand (MDD) falling by as much as 3.5% and 2% below the no-tariff baseline respectively over the next five to seven years.
In essence, any protectionist policies meted out by the US could significantly impact the Irish economy. Any such policies may also “prompt multinationals to relocate to the US, posing further risks to the Irish economy and public finances”, according to ESRI paper author Dr Paul Egan.
