Outsourcing seems to be an
increasing trend in the medical device industry and it’s expected to grow by
40%, reaching US$ 12 billion by 2018. Due to the pressure companies are under
to develop devices that offer real value and not just incremental benefit, OEMs
are focusing on innovation and core capabilities.
As a result, medical devices
companies are asking more of their contract partners, responsibilities from
front-end design to back-end services including warehousing, distribution, and
regulatory assistance. According to the Millennium Research Group report,
“overall trends in the medical device outsourcing space indicate that [contract
manufacturers] are broadening their range of services, growing organically or
through acquisition to become one-stop-shop manufacturers.”
Another
trend of OEM strategy is no longer to manufacture devices in China or Mexico
for distribution in the United States and Europe. Instead, these companies are
making products in emerging countries for regional and local distribution.
“To line up
with our global customers, who are manufacturing in Asia for Asia, Europe for
Europe, and the Americas for the Americas, we need to have capabilities in each
of those geographies.”
Phillips-Medisize
president and CEO Matt Jennings
References:
http://www.mddionline.com/article/medtech-oems-focus-innovation-suppliers-step-their-services
No comments:
Post a Comment