INDUSTRY NEWS
MedTech divergence on tariff strategy
“ The Trump administration’ s 2025 trade agenda is compelling U. S. medical device companies to address escalating tariff pressures, especially those on imports from China. While some are making decisive shifts in their manufacturing strategies, others are conservatively absorbing short-term impacts and awaiting tariff stabilisation. As such, firms must carefully evaluate the long-term risks of trade disruption as they assess strategies for policy resilience protecting their market position,” said GlobalData, a data and analytics company.
Diversifiers are moving quickly to localise operations.
“ Abbott Laboratories, which earns over 60 % of its revenue internationally, is investing US $ 500 million to expand U. S. manufacturing in Illinois and Texas. Similarly, Johnson & Johnson announced a 25 % increase in U. S. investment in March, committing more than US $ 55 billion over four years to strengthen its domestic manufacturing and R & D,” added the analyst.
Ashley Clarke, Senior Medical Analyst, GlobalData, commented:“ Even when not directly tied to tariffs, these capital-heavy moves align with a broader trend towards self-reliance in U. S. markets, preparing for
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potential regulation changes beyond 2025. These companies are proactively preparing for the future, safeguarding revenues in the world’ s largest medical device market.”
Delayers, however, are avoiding structural shifts in hopes of stabilisation.
“ GE HealthCare expects a US $ 475- million EBIT impact in 2025, with 75 % from U. S.-China tariffs, but is not shifting its capital strategy. Instead, it is focusing on automation and productivity improvements, and maintaining R & D pipelines. Stryker, anticipating a US $ 200-million impact, is similarly focusing on internal efficiencies while closely monitoring the trade environment and making no commitments to capital reallocation. These companies are essentially buying time, hoping that the policy environment will stabilise, sparing them from costly overhauls. But this strategy leaves them more vulnerable if tariffs remain in place,” continued Clarke.
Dual planners are poised to employ a balanced approach. Medtronic, said GlobalData, shut down more than a dozen global manufacturing and distribution sites in 2024 to enhance margins. Its tariff strategy for 2025 involves monitoring tensions, optimising operations and reassessing its global footprint— without making additional restructuring commitments.
Clarke added:“ Medtronic’ s strategy reflects calculated flexibility. The company has shown its willingness to restructure aggressively when necessary, but for now it is reserving major changes until the trade picture becomes clearer.”
He concluded:“ Tariffs have shifted from a cost consideration to a strategic factor that could influence manufacturing, R & D and investment timelines throughout the MedTech sector. Companies with localised production capabilities or robust sourcing models are anticipated to be in the best position to withstand future disruptions.” n
www
. globaldata. com
Don’ t miss Manufacturing World Tokyo
Manufacturing World Tokyo 2025, organised by RX Japan Ltd, will take place from 9-11 July 2025 at Makuhari Messe, in the suburbs of Tokyo( Japan).
“ Our Exhibitor Directory is now live: industry professionals, buyers, engineers and decisionmakers from around the globe can now explore thousands of exhibitors preparing to showcase the future of manufacturing innovation. Manufacturing World Tokyo is recognised as one of the world’ s largest manufacturing trade shows, bringing together professionals from across the global supply chain,” said RX Japan.
“ This year’ s edition will be the most dynamic yet, featuring 1,800 exhibitors( as of 12 May 2025) across ten specialised shows under one roof. Visitors can expect a comprehensive showcase of the latest technologies, solutions and services transforming manufacturing industries today,” it added.
The launch of the Exhibitor Directory marks a crucial milestone in the lead-up to the show, enabling visitors to preview products and services on display, identify and connect with potential business partners, schedule meetings in advance to maximize the value of
their visit, and customise their experience by planning a targeted agenda. Conferences at the event will feature speakers from Honda, SUBARU, DENSO, Hitachi, Mitsubishi Electric, IHI and more.
“ At the heart of the exhibition lies the Mechanical Components & Technology Expo, a dedicated show-in-show segment where exhibitors will engage with international visitors. Suppliers specialising in elemental and processing technologies, including pivotal Tier-2 and Tier-3 manufacturers that have long supported Japan’ s leading automobile and machinery sectors, will showcase their solutions,” explained the show organiser.
In addition, the exhibition will highlight groundbreaking components integrated with the latest technologies such as artificial intelligence( AI) and the Internet of Things( IoT), demonstrating how high-calibre parts are driving comprehensive advances in the manufacturing industry. The event features ten specialised shows, including the Design Manufacturing Solutions Expo; Mechanical Components & Technology Expo; Medical Device Development Expo; Factory Facilities & Equipment Expo; Additive Manufacturing Expo; Measure / Test / Sensor Expo; Manufacturing DX Expo; Industrial ODM / EMS Expo; Manufacturing Cyber Security Expo and Smart Maintenance Expo.
“ Manufacturing World Tokyo 2025 is expected to welcome more than 65,000 visitors over three days, offering attendees high-level networking opportunities, in-depth discussions and business partnerships with top international manufacturers and solution providers,” concluded RX Japan. n
www. manufacturingworld. jp / hub / en-gb. html
14 | ismr. net | ISMR July / August 2025