One of the key findings in Greenlight Guru’s 2025 Medical Device Industry Report was that economic uncertainty is playing a large role in the decisions medical device companies make this year.

The report surveyed more than 500 medical device professionals across quality, regulatory, product development, clinical affairs, and executive roles to get a comprehensive look into the medtech industry. However, our respondents filled out the survey in late 2024, and a lot has happened since then to add to the uncertain economic picture and make it even more difficult to predict what will happen next.

So let’s take a look at the responses we got in the report, as well as any changes to the economic outlook for 2025.

Companies were already facing economic headwinds

One of the more telling insights we got in the 2025 Medical Device Report came in response to a question about how economic uncertainty was affecting respondents’ companies. Many companies were already taking measures to reduce costs in the face of economic pressures in late 2024.

Source: Greenlight Guru’s 2025 Medical Industry Benchmark Study

As we can see, more than one-third of businesses of all sizes had halted hiring, and that percentage jumped to nearly half of companies with more than 1,000 employees. A significant number of companies were also reducing headcount, and many were delaying new product development and new technology investments.

When we asked what the biggest hurdle to carrying out clinical trials was, respondents told us that securing funding was by far the biggest challenge.

Source: Greenlight Guru’s 2025 Medical Industry Benchmark Study

Taken together, these responses paint an unsettled but still optimistic picture of the medtech industry toward the end of last year. There was clearly some slowdown anticipated in 2025, but responses didn’t indicate a dire view of the industry as a whole.

However, that was last fall. In April 2025, the story is different.

The effects of tariffs in medtech

The newest and most pressing issue for many medtech companies is the state of current global tariffs and the possibility that more will be implemented at some point this year.

There was an initial belief that medical supplies might be exempt from the tariffs that were announced in April 2025. But that hasn’t been the case so far. Given the complex and often fragile supply chains in healthcare, and the common practice of contract manufacturing, there are fears that the tariffs imposed by the Trump administration and any retaliatory tariffs will harm the medtech industry.

AdvaMed, one of the most prominent medical device industry organizations, has continued to push for such an exemption. But so far it hasn’t been successful.

In a letter to the Trump administration, AdvaMed stated it was:
“...concerned that tariffs placed on medical and dental equipment threaten to disrupt the supply chain and raise costs for these critical items. This ultimately places further financial pressure on providers, hospitals, and health systems, particularly those located in rural and medically underserved areas.”

The organization pointed out that the tariffs could threaten the industry’s ability to improve patient outcomes, improve innovation, and meet growing healthcare demands.

Although there’s currently a 90-day pause on the highest tariffs on many U.S. trading partners, the 10% baseline tariff is still in effect, as is a now-30% tariff on Chinese imports. Whether these tariffs will remain in place, or for how long, is still an open question—but one with major implications for the medtech industry.

Effects of economic uncertainty on technology investments

One of the downsides to the current economic conditions is that companies are less likely to invest in new technology that might boost productivity and efficiency. Earlier we saw that roughly a third of respondents told us they were delaying new technology investments.

That’s unfortunate, because as we look at the breakdown in the tools respondents told us they use for clinical trials, quality management, supplier management, and product development, we can see that general-purpose software and paper-based approaches still make up a significant portion of the responses.

Source: Greenlight Guru’s 2025 Medical Industry Benchmark Study

This breakdown shows that there is still potential for a large-scale modernization within the industry, but it may be hampered by economic headwinds in 2025. Unfortunately, companies that wait to upgrade their systems will end up facing other costs—the costs of maintaining the status quo.

“The truth is that the cost of delaying technology investments can end up costing even more in the long run,” says Etienne Nichols, head of Industry Insights & Education at Greenlight Guru. “The problem is less visible in the earliest stages of development, but as a company ramps toward launch, the sheer volume of data can quickly overwhelm teams and cause a tremendous amount of inefficiency.”

Tools to manage all your critical processes

When there’s an enormous amount of volatility out there, the best thing you can do is to focus on what you control. And in this case, that could mean giving your team the tools they need to work as efficiently and effectively as possible, even in the face of rapidly changing economic conditions.

For example, by bringing together quality processes, product development, training, supplier management, and clinical affairs, Greenlight Guru massively reduces the number of tools (or spreadsheets) your business needs to manage all its critical processes, helping your organization cut through chaos and stay organized.

Published April 28, 2025, by Greenlight Guru.