A recession is an extended period where the economy of a country or region declines in size and wealth. It is usually measured by decreasing gross domestic product (GDP) for at least two consecutive quarters. A recession can also be defined as a significant decline in economic output, employment, and spending spread across the economy.
Recessions can last from 6 months to 2 years and sometimes even longer. The length of a recession depends on its severity and how quickly the economy responds to it.
During a recession, businesses may have trouble finding customers to buy their goods and services because consumers have less money to spend on these items. Businesses may also have trouble hiring workers because fewer people are employed during recessions, so fewer people are available for companies to hire.
Some businesses may go out of business during recessions because they cannot afford to operate when there aren’t enough customers or workers available to support them. Others may struggle financially if they lose customers during recessions but still have fixed expenses like rent or debt payments that must be met regardless of whether they’re selling anything.
Not to mention the increase in lockdowns throughout the world that were the result of the COVID-19 pandemic. Recently, there was a fairly big lockdown in Shanghai where the ports were closed and hundreds of ships were sitting idle waiting to dock. This affected jobs and the constant flow of much needed medical supplies to the west too, creating huge shortages of healthcare supplies.
Some causes of a recession include:
High-interest rates due to Fed rate hikes: Interest rates are rising because the Federal Reserve is hiking its target rate for short-term borrowing (a process known as “tightening”). This makes borrowing money more expensive and harder for people to get loans for big purchases like cars or homes. This also affects consumers’ ability to buy big-ticket items like TVs and home appliances that aren’t essentials like food or shelter.
Global trade wars: There are growing trade tensions between the U.S., China, and Europe over tariffs on goods like steel, aluminum, and chemicals. These tariffs make imported goods more expensive, so they drive up the price of everything from washing machines to cars to oil (used in making plastic). This means less money in consumers’ pockets which means less spending at stores which means fewer jobs in retail.
The U.S. economy is in a recession. While the official definition of a recession is two or more quarters of negative growth, this period of slow economic growth has already impacted businesses. Many companies feel the financial pinch, and some even have to downsize or close their doors entirely. Medical technology companies are no exception.
Medtech companies often rely on government funding for research and development, so when budgets are cut, it can mean fewer grants for new products and services. A lot of these companies are helping ease the burden of medical supplies and staffing issues by offering solutions to the more significant healthcare industry.
Then there are healthcare tech startups like Seattle-based bttn who are provide advanced web technologies, AI, and big data insights to small doctor’s offices to large hospital networks. They are uniquely positioned to help with them with any medical supplies issues as the recession looms. Medical technology companies like them provide innovative solutions for patients, physicians, and hospitals and offer a wide range of services that can help offset any economic downturn.
Many of these technology companies have been investing heavily in research and development, which has led to many new products that can improve patient care and reduce costs. Some medical technology companies have also worked with hospitals to create more efficient processes to save money.
Several of these companies are helping with staff shortages by providing temporary employees who can fill in for those leaving their jobs because of layoffs or other reasons. This allows hospitals to avoid hiring expensive permanent workers while keeping up with patient demand.
