Local Cluster = Global Impact

April 2011: OrthoWorx eNewsletter

The orthopedic industry is legendary for its simple evolution.

Revra DePuy humbly began his company in 1895 in Warsaw, Indiana. From that one company, other competitive companies were formed. J.O. Zimmer began his business in 1927 after working for DePuy. In the 1970s, Biomet was formed by veterans of Zimmer and the Orthopedic Equipment Company (OEC). Additional supplier companies and service providers were created to support the major manufacturers. The industry continues to grow, driven by innovation and unmet clinical needs.

Organically, the industry grew into what has become a true cluster of nearly 30 orthopedic device manufacturers, suppliers and technical service providers in the Warsaw region. This is according to BioCrossroads September 2009 Report: Warsaw, Indiana: the Orthopedic Capital of the World. *

Clearly, this orthopedic industry cluster contributes to Warsaw and the surrounding economies. On the flip side, how does it impact the global economy? It is significant.

• Original equipment manufacturers (OEMs) and suppliers = more than $11 billion in annual revenues, better than 50% market share in the US orthopedic industry.

• Nearly one-third of the $38 billion global orthopedic industry is headquartered in Warsaw, Indiana.

Medical device companies headquartered in Warsaw have global locations as well. Manufacturing locations have been established in China, Switzerland, France and the United Kingdom, among others. They are global companies in what has become a small world economy. Technology drives connectivity in our day-to-day business. It also leads to increased competition.

The orthopedic industry cluster has created undeniable economic advantages. A movement is under way to purposefully cultivate the orthopedic industry cluster to retain Warsaw’s leadership position as The Orthopedic Capital of the World.

To this end, OrthoWorx was formed as a business league to help join the efforts of the medical device companies. OrthoWorx strives to help ensure Warsaw and the industry are strategically aligned to foster sustainability and growth.

We hope you’ll stay tuned as we provide updates to you on our progress.

*9.10.2009_BioCrossroads_report_defines_strategic_vision_for_global_orthopedics_capital