Real Estate and Construction Slowdowns Affecting the Medical Industry
I had an interesting conversation regarding the housing markets effect on a seemingly non-related industry… the medical industry, specifically high tech surgical and hospital supplies.
Most would claim the medical industry may be somewhat immune to the current economical crisis. That people will get sick and need medical attention. That factor might not be what makes medical industry professionals and corporations the greater portion of their profits after all. It is a fact that when the housing market takes a dive, so goes the number of injuries and in-turn surgeries and hospitalization. For instance, take the Florida housing industry and also the Florida medical industry… when homes are not being built and roads are not being developed or maintained, there are less onsite construction injuries (an obvious one). Nevertheless, due to the decreasing number of construction projects throughout the country, there are less construction materials being transported daily on our highways and roads, therefore, there are less accidents on the roads. Bad accidents happen when roads are being used to their full capacity and with the general public driving less due to the current economical crises, our roads are actually safer and the number of deadly accidents has declined. CEO
The one benefit to the current economical woes is that we are not being injured as often. Life threatening vehicle accidents on our apparently insufficient highway system is down, therefore, the continuous need for major life saving surgeries, hospitalization and expensive medical / surgical supplies and technologies is down.
The real estate boom was actually a huge factor in the expansion we have seen in medical industry over the past decade. Medical supply sales, medication TV advertisements and the huge branding campaigns where all funded by the income generated by the higher number of construction related injuries and road accidents.