Orthopedic Industry Cluster Impacts State Economy at $3.7 Billion

May 2011: OrthoWorx eNewsletter

The economic impact of the orthopedics industry cluster in Indiana is $3.7 billion for 2009, according to a study commissioned by OrthoWorx. The study was completed by Indiana Business Research Center (IBRC), part of Indiana University’s Kelley School of Business

Kosciusko County’s orthopedics industry generated an estimated $2.4 billion in direct output—the economic concept for the value of local production only. Total value of the orthopedic industry sales generation from Warsaw-based companies was approximately $11 billion in 2009.

“OrthoWorx was created to help preserve and expand the economic opportunity represented by the region’s orthopedic industry cluster. This study quantifies exactly what is at stake, and why it is so important that our community has a dedicated effort focused on improving the environment in which the cluster operates,” states Brad Bishop, OrthoWorx Executive Director.

Kosciusko County has perhaps the largest concentration of orthopedic firms in the nation. While Biomet, DePuy and Zimmer are the largest employers, the county also is home to 14 other orthopedic device manufacturers. It is one of only four counties in the country with medical device industry employment of more than 6,000.

The combined effects of the orthopedic devices industry generated 13,000 jobs in Kosciusko County, accounting for 43 percent of the county’s employment. Statewide, the total employment footprint is 16,700 jobs.

Matt Kinghorn, an IBRC economic analyst and co-author of the report, noted that between 2003 and 2009, the county’s employment in medical devices jumped by 37 percent, or 1,800 jobs. “This was an explosion compared to employment growth in the medical device industry nationally. For every 10 new jobs in the orthopedics industry, another nine jobs are created elsewhere in Kosciusko County and, statewide, an additional 15 jobs,” states Kinghorn.

Looking forward, Kinghorn states, “Perhaps the best news for Kosciusko County and for the state is that this industry continues to grow. As we’ve seen, any expansion in this industry has significant positive ripple effects throughout the local and state economy.”

For more information or to access the study in its entirety, visit the OrthoWorx website.
https://orthoworxindiana.com/orthoworx-newsroom/