Where Industry and Security Intersect
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VII.
RecommendationsNever before has there loomed such a huge market for AT products. In addition to the large bubble of aged parents of the baby boom generation, there are the baby boomers themselves. Together, these groups represent just the first large waves of growing demand for AT products in the United States and by aging consumers in other parts of the world.
Advances in the medical field have greatly affected the quality and length of life for people worldwide. As a result, people are living longer, and their need for AT products is likely to grow as they age. Moreover, society generally recognizes that AT products make living independently less difficult and more meaningful. Strong demand for AT products is assured for decades to come.
AT manufacturers in the United States stand to benefit greatly from the demographic shifts that are occurring in United States, Europe, Asia and elsewhere–but only if they can operate efficiently, field superior products ahead of competitors, and overcome corporate, institutional and market barriers. AT manufacturers in the United States face strong competition from abroad in many AT product classes, both in international markets and at home.
The AT industry in United States, as noted earlier in this report, is highly fragmented and may include as many as 2,700 companies, most of them small, having annual sales of less than $10 million annually. The AT industry survey data demonstrate that the technical and business management sophistication of AT companies in the U.S. varies greatly. The survey also shows that many AT companies, large and small, are having to negotiate various kinds of obstacles — including regulatory and trade practices — that hinder their efforts to market and sell AT products in the U.S. and abroad.
Another challenge before many AT industry executives is to learn how to more effectively leverage private and public financial and technology resources in developing products and in manufacturing. In other instances, it appears that some AT companies must invest more effort learning how to market in foreign countries – and how to traverse regulatory processes at home and overseas.
At the same time, based on comments submitted by survey respondents, it appears that there may be opportunities for federal and state agencies and private insurers to streamline AT product regulatory processes; and to achieve greater standardization in reimbursement policies on various classes of AT products. Federal agencies and the AT industry also should identify nations’ discriminatory trade policies that impair or restrict trade of U.S.-origin AT products and services.
In addition, the AT industry would benefit from greater interaction with federal R&D organizations in developing and designing products, resolving technical issues, and in optimizing manufacturing processes. It is apparent from survey responses that a large portion of the AT industry is not fully cognizant of the breadth and depth of the engineering, manufacturing, and research capabilities of federal agencies such as the Departments of Commerce, Defense and Energy, and the National Aeronautics and Space Administration.