January 19, 2025
Medical Device Executive Hiring: Signs of a 2025 Recovery
It's January, time to take stock of the year that just ended and consider prospects for the new one. That means I've been thinking about what 2025 has in store for executive hiring in the medical device industry.
Here’s my take:
Good Riddance to 2024
2024 was the second year of a correction that followed the overheated, frenzied hiring of 2021 and 2022. The slower executive hiring market in medical devices was part of a larger, economy-wide purge of pandemic-era excesses and distortions.
The slowdown was felt across all sectors. Startups faced the toughest fundraising environment in years, private equity dealmaking was throttled by high interest rates, and large companies focused on getting lean.
The good news? Travis & Company started to see an uptick in activity in August, and it seems to have legs. I've heard similar reports from other service providers. There's cautious agreement that things have shifted in a positive direction.
Why 2025 Looks Better
Several factors have me optimistic about 2025:
- The economy remains strong
- Q4 saw interest rates trending down. If it continues, it should unlock venture capital and private equity dealmaking
- Equity markets remain at high levels
- Medical devices has been in a down cycle for more than 2 years. We’re due for an upswing
What Companies Are Telling Me
The mood is cautious optimism:
- Startups
Startup CEOs report the fundraising environment suddenly feels better. While not yet visible in the numbers, investors are taking more meetings, and the apocalyptic mood is lifting. An uptick in early-stage investing makes sense - there are great ideas that deserve funding and can be had at attractive valuations.
- Private Equity
There are signs of renewed activity at private equity-backed companies. If interest rates continue on a downward trajectory, deal flow should improve significantly in this sector.
- Larger Companies
Many larger companies spent 2024 getting lean. Now they're running about as lean as they can get. With existing employees stretched to their limit, growth will require more hiring.
Across all three of those segments, I expect companies to be cautious and thoughtful when adding headcount. If that’s right, executive hiring will likely focus on:
- CEOs, Division Presidents and GMs who can accelerate revenue growth and profit, or turn around struggling businesses
- CFOs who can support fundraising and dealmaking
- Revenue-producing functions (sales and marketing)
- Essential regulatory compliance roles (regulatory affairs, quality, etc.)
Of course, there's plenty that could go wrong - there always is. But after a couple of down years, conditions appear right for a meaningful uptick in executive hiring at device companies.
Check back in a year to see if my optimism was warranted. Like most prognosticators, my track record is decidedly average.
