Direct and Indirect Economic Impacts

Our economic activity impacts a wide range of stakeholders. Common direct impacts include financial transactions, such as payments of wages, taxes, and dividends, and the distribution of philanthropic grants and cash contributions.

Indirect impacts, while harder to quantify, include jobs created by our suppliers and increases in productivity for patients benefiting from our therapies. Our remote monitoring products and minimally invasive surgery techniques also have the potential to reduce healthcare costs by reducing hospitalization.

During fiscal year 2011 Medtronic moved or consolidated operations which resulted in an indirect economic impact on our supply chain in the following locations:

  • Manufacturing in Santa Rosa, California, USA was moved to our Galway, Ireland facility.
  • U.S. distribution facilities in Mounds View, Minnesota; Grand Rapids, Michigan; and Corona, California were closed as we completed our distribution consolidation to three centers located in Memphis, Tennessee; Newark, New Jersey; and Mira Loma, California.
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Supply Chain Spend

A cash flow analysis of fiscal year 2011 supply chain spending shows a global distribution of dollars among suppliers in 9 U.S. states and 12 other countries where we have significant operations. Significant operations include major office locations, manufacturing facilities and distribution sites.

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