Continuously serving Kosciusko County since 1854
"Everyone, across the nation and around the world, knows where Warsaw, Ind., is because of the orthopedics industry," said Dr. Walter Polsila Thursday afternoon.
Polsila presented the Battelle Institute's final report to members and guests of Kosciusko Development Inc. regarding the health and biomedical industry.
According to the report, the biomedical manufacturing companies here form a true economic cluster.
Polsila said a cluster is defined by its geographical concentration and grouping of similar, related and complementary firms with suppliers and shares in the labor market, business services and infrastructure.
Beginning with the establishment of DePuy in 1895, the industry has grown to encompass 116 establishments that employ 6,105 people.
According to the study, the average annual wage in the industry is $52,334 (higher than anywhere else in the state or nation). The industry comprises 20.5 percent of private sector jobs.
The analyst said the orthopedic industry has great strengths and great weaknesses. He was adamant that the industry set certain priorities to maintain their leadership.
Polsila said that while Warsaw may be very well known throughout the health industry for its orthopedic manufacturing companies, people in Warsaw may not be familiar with the industry or its importance.
He said the lack of communication between companies is a real hindrance.
"Establish a nationally recognized technology image for Kosciusko County as a leading high-technology center focused around the biomedical manufacturing industry," he said.
He advised the companies to come together to build, attract and retain a work force.
That the industry has to pull professionals from outside the area is perceived as a weakness, Polsila said. The work force should, in both quality and quantity, meet business needs and support continued economic development.
The orthopedic field is 43 times more concentrated here than in any other place in the country.
"The biomedical industry is metal-based now," he said. "Are you able to quickly switch to polymers or other materials as they are developed?"
He advised that a coalition of companies begin immediately to create a biomedical institute to foster internships and careers in the field, education and training programs.
Polsila said the industry's biggest weakness is the lack of local skilled workers and training opportunities.
"Retain and expand the biomedical manufacturing cluster base in Kosciusko County as a more cohesive economic cluster with stronger ties within the region," he said. "You aren't communicating your needs to the high schools."
Employment in the local cluster is 1.2 percent, compared to the state's 2.8 percent.
He advised the group to maintain a strong business for themselves by investing in physical and technology infrastructure and community-based services.
According to Joy McCarthy-Sessing, Kosciusko Development Inc. president, no other local economic development organization in Indiana has contracted a project like the report.
KDI, working with the Indiana Health Industry Forum, commissioned Battelle to conduct the local study.
"We must work at retaining and encouraging our high technology biomedical companies that pay high wages and good benefits to remain in Kosciusko County and grow here," she said. "The KDI board of directors are to be commended for taking the initiative to plow new ground in doing the first- ever local economic impact analysis of the biomedical industry and work at formulating a plan to assist them and potentially attract new firms and suppliers."
The health industry in Kosciusko County consists primarily of the manufacturing of surgical appliances and supplies, or orthopedics.
The leading manufacturers are BioMet, Zimmer, Sofamor-Danek, DePuy and OEC.
