LOS ALTOS, CA – U.S. medical electronics production is predicted to grow more quickly than healthcare outlays, says Henderson Ventures in its recent forecast.

Outlays for healthcare help prolong life, but senior citizens need extensive care to sustain a quality lifestyle as well. Healthcare expenditures will grow at an average annual rate of about 8% during the next 10 years, baring unforeseen catastrophes, Henderson says. And medical technology offers advances in life-sustaining treatments and new cost efficiencies.

In addition to steady growth, the medical electronics industry also offers healthy levels of profitability. For example, the combined after-tax profit margins of three of the largest medical electronics manufacturers, Boston Scientific, Medtronics and St. Jude Medical, have generally been in the 15-20% range, says Henderson. And given the emphasis on quality and reliability over costs, component and material suppliers can also prosper after qualifying.