March 25, 2025
Medtech Executive Job Market 2025: Uncertainty Puts the Brakes on Growth
When I wrote my outlook for the executive job market back in January, I was highly optimistic about 2025. We’re still in the early innings, but three months in we've seen stasis rather than the growth I anticipated. What's happening?
In a word: uncertainty. And it's coming from multiple directions.
Tariffs First, there's the looming specter of tariff changes. Every company I work with that manufactures outside the U.S. is developing multiple contingency plans. These exercises are consuming enormous amounts of management bandwidth, distracting executives from other priorities. Even companies that manufacture exclusively within the U.S. aren't immune. They're concerned about potential retaliatory tariffs on their exports.
Cuts to Research The healthcare sector – traditionally a source of stability – is facing its own challenges. With cuts to federal research funding, these institutions will see major budget shortfalls. In addition to threatening the pipeline of medical innovation that leads to new company formation, these fiscal challenges might also affect capital equipment purchases by healthcare systems. While I haven't heard much direct concern about this yet, it's a logical worry for companies selling equipment.
Cuts to FDA The FDA has laid off a significant number of reviewers. Companies are concerned the changes will lead to a slowdown in the review of regulatory filings, which could dramatically impact their business plans.
Recession Fears Adding to the mix are growing concerns about a potential recession. Economic signals have been mixed, and while no one can predict with certainty whether a downturn is coming, the mere possibility is affecting behavior. Even businesses with strong current performance are preparing for rougher waters ahead – just in case. It's the corporate equivalent of battening down the hatches before a storm that may or may not arrive.
It all adds up to pervasive uncertainty. In situations like this, companies hunker down. They postpone investments in major initiatives until they better understand the terrain.
The impact on executive recruiting is nuanced. Significant parts of the market remain robust. Well-funded startups continue business as usual, and commercial-stage companies are still actively recruiting for critical roles. The real slowdown is in expansionary initiatives – companies are waiting for clarity before investing in major new projects. It's still a good market for executive talent, just not the accelerating one I had expected.
Fortunately, it's only March. There's still plenty of time for my optimistic forecast for 2025 to be fulfilled. Perhaps we'll see greater clarity on the macroeconomic and political environment in the coming months, releasing the pent-up demand for leadership talent.
For now, though, patience is the order of the day.
