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While AI utilisation is high in the medtech industry, further incentives are needed to support SMEs adopting new tech.
Despite its many successes over the years, medtech SMEs in Ireland need additional support to “fully embrace” digital transformation and artificial intelligence (AI), says Irish Medtech, the Ibec group representing the industry in the country.
The latest Medtech Sector Manufacturing Report presents findings drawn from an online survey of more than 100 senior business leaders. According to the report published last week (21 March), engagement with AI is higher in the medtech sector than the national average, with two-thirds of businesses planning to introduce or enhance their AI initiatives in the coming years.
However, further incentives are needed to ensure that SMEs can scale these new digital solutions, the report finds.
“The European Union’s landmark €200bn InvestAI fund, with €20bn earmarked for AI gigafactories, presents a unique opportunity for Ireland to lead in digital manufacturing,” said Irish Medtech’s newly appointed chair, Jackie Murphy.
“The Irish AI Advisory Council has already urged the Government to establish a real-time ‘AI Observatory’ to track AI adoption, skills development and market trends – aligning with Irish Medtech’s call for a national strategy to accelerate digital integration across all manufacturing tiers.”
With Ireland exporting more than €16bn in medtech products and positioned as a leader in global stent and orthopaedic knee production, there is a “clear economic case” for investing in advanced manufacturing, the report finds. However, the ability of smaller firms to adopt AI, automation and digitisation remains a priority.
The country’s medtech industry counts itself as one of the top five globally. Still, business sentiment in the sector has become “somewhat less positive” over the last year, while ratings for the months ahead are polarised.
Leaders who took part in the survey said issues around labour costs and employee retention, as well as housing for their employees as the industry’s top three challenges. While the report also found that costs and investments are expected to increase for large proportions of businesses in the sector while productivity and sales increases are expected to remain the same or at slightly lower levels.
Moreover, weaker global growth is pushing medtech companies to focus on expansion and new markets as priorities for this year to improve profitability.
The report calls the Irish Government to create a new national health technology and life sciences strategy, embrace new tech with advanced manufacturing capabilities, as well as support innovation and entrepreneurship. In addition, it asks Ireland to expand its clinical research landscape and support new talent growth in the industry.
“Ireland’s manufacturing sector is at a crossroads,” said Mike Farrell, the chair of Ibec’s Medtech and Engineering Advanced Manufacturing working group and the director of business transformation at West Contract Manufacturing.
“We must act now to support all medtech firms, especially SME’s, in their digital transformation journey. By investing in AI, automation, and skills, we can solidify Ireland’s position as a leader in advanced manufacturing.”
Adrienne McDonnell, a senior executive with Irish Medtech, said it is predicted that there will be 56,000 medtech jobs in the country by 2028.
“Ireland’s ability to compete on a global scale depends on its commitment to supporting innovation at all levels of industry – especially for smaller businesses navigating the complex digital landscape.”
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