The orthopedics and spine industry is currently witnessing an unprecedented wave of movement of talented people.
This significant employee churn can be attributed to a variety of factors, each contributing to the orthopedic industry’s evolving landscape.
- Impactful Acquisitions: The orthopedics and spine sector has recently seen a series of noteworthy acquisitions that have left a lasting impact. Notable examples include the acquisition of Nuvasive by Globus and Orthofix’s acquisition of SeaSpine and Enovis acquisiton of Lima. These mergers have brought about substantial changes within the industry, affecting employee dynamics. Usually 1+1=1.25, so people must be laid off.
- Smaller-Scale Acquisitions: It’s not just the major players making waves; smaller acquisitions are also playing a role. Zavation acquisiton of CoreLink and ZB’s acquisition of Activus Orthopaedics are examples, underscoring the industry’s dynamic nature within smaller companies.
- Financial Challenges: The financial health of many orthopedic companies has been a cause for concern. High levels of debt and unprofitable business ventures have put significant pressure on these organizations. Notable examples include Nuvasive, with $1.36 billion in debt and annual gross sales of $1.2 billion, and Alphatec, carrying $632 million in debt with annual gross sales of $350 million. These financial strains have already had repercussions, such as Conformis and Surgalign resulting in takeovers. The burden of debt is expected to continue affecting other orthopedic companies.
- Consolidation and Closure: Small and medium companies have been forced to fold their tents, restructure or find an acquirer due to the challenging environment. This consolidation is a result of the shifting tides in orthopedics and spine.
Examples:
Bioventus – in trouble
Carevature – asset sale
Conformis – asset sale
ControlRad – asset sale
Intellirod Spine (fka OrthoData Inc.) – asset sale
Lima TechMah Medical – cut US office
Novum (fka Bio2) – shut down (bioglass composite, Boston)
Surgalign – asset sale
Stryker Knee Creations – division shut down
Trice Medical – desperate for capital
Titan Medical – asset sale
TracPatch Health – asset sale - Changing Skillset Requirements: The skillset demands within the industry are evolving rapidly. Sales generalists are becoming less essential as the Big Ortho create more and more direct sales reps and sales specialists. In Engineering, expertise in software engineering, electrical engineering, and systems engineering is in higher demand that the traditional mechanical engineering. This shift has brought a wealth of new talent into the market.
- Big Orthos doing more with less people. Read – https://orthostreams.com/2023/06/doing-more-with-less/
All these factors have collectively created an abundance of available talent within the orthopedics and spine sector. If your organization is on the lookout for exceptional talent, now is a prime opportunity to find individuals with the skills and expertise necessary to thrive in this evolving industry. The year of talent churn presents a unique chance to access top-tier professionals eager to contribute to your organization’s success.