Medical Equipment Distributors NAICS 423450

Jan 5, 2026 - Many Devices Can't Be Updated To Meet Current Security Standards

• Many existing medical devices don't meet the FDA's current cybersecurity standards, according to Today's Medical Developments. About 53% of connected medical devices tested by healthcare cybersecurity company Cynerio had known critical vulnerabilities, and approximately one-third of healthcare IoT devices have an identified critical risk, potentially affecting the technical operation and functions of medical devices. Many of the devices weren’t designed to support updated encryption standards and modern security measures long-term so there’s no easy fix. For example, a device that was cleared 20 years ago using encryption that was state of the art at the time will most likely be considered insecure now, but the hardware on which that device is based likely doesn’t support modern encryption.
• The US Supreme Court is hearing arguments on whether tariffs imposed by the Trump administration are legal. Medical equipment distributors are likely to benefit if the cost of goods imported from countries that were hit with tariffs decrease. The US Court of Appeals for the Federal Circuit ruled earlier that President Trump overstepped his authority when he declared national emergencies to justify tariffs on many countries. The Trump administration can use other laws to impose duties on goods from other countries if the tariffs are ruled illegal. The administration will most likely rely on Section 301 of the Trade Act of 1974 and Section 232 of the 1962 Trade Expansion Act to recreate Trump's tariffs, experts told Business Insider. Section 301 allows the US to place tariffs on goods from countries if they "either violated international trade law or otherwise acted unfairly," according to Rachel Brewster, a professor of international trade at Duke Law School. The law includes provisions that allow the president to form trade deals with other countries to resolve the unfair trade practices, so the deals Trump already struck could likely be "folded into" Section 301, Brewster said. Section 232 allows the president to impose tariffs on goods determined to be a national security threat. Trump has already applied it to goods ranging from aluminum to bathroom vanities, according to Business Insider.

• A significant proportion of essential medical goods come from international sources despite efforts to bolster the domestic supply chain, according to the American Hospital Association (AHA). Nearly 70% of medical devices marketed in the US are manufactured exclusively overseas. In 2024 alone, the US imported over $75 billion in medical devices and supplies, according to an AHA analysis of Census Bureau data. These imports include many low margin, high-use essentials in hospital settings — such as syringes, needles, blood pressure cuffs, and IV saline bags. Hospitals also rely on imports for advanced surgical tools and other critical technologies.
• Medical equipment distributor industry employment increased slightly and average wages for nonsupervisory employees increased moderately during the first eight months of 2025, according to the US Bureau of Labor Statistics. Professional and commercial equipment distributor sales are forecast to grow at a 3.99% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund.