Historically, the medical technology sector has been reluctant to embrace outsourcing on a wide scale, but that is changing. In fact, the industry seems to be making up for lost time. A report from Transparency Market Research (TMR; Albany, NY) forecasts 14.3% compound annual growth in contract manufacturing for the global healthcare market through 2019. The market will rise to a value of $246 billion by the end of the forecast period, according to TMR.
The report is segmented into pharmaceutical and medical device contract manufacturing, with the latter accounting for 87.7% of market share, according to the report.
A contributing factor to the rise in medtech contract manufacturing is industry’s need to shore up margins, which have been eroding as a result of competition from low-wage overseas competitors and cutbacks in government funding, writes Eamon Butler in sister brand MD+DI. “This has resulted in consolidation within the industry and pressure to remove as much direct operational costs as possible,” he notes.
The TMR report concurs that outsourcing allows healthcare OEMs to reduce production costs without compromising on product quality. It also notes that it provides them with access to expertise in specific business segments that may not be available in-house.
But statistics and forecasts are dry stuff. To experience firsthand the dynamism of medtech outsourcing, a visit to the forthcoming Medical Design & Manufacturing (MD&M) West event, co-located with PLASTEC West in Anaheim, CA, next month, is well advised.
|MD&M West and PLASTEC West are part of the largest annual design and manufacturing event in North America. More than 20,000 engineers and executives are expected to attend the trade show and conference, which comes to the Anaheim Convention Center in Anaheim, CA, on Feb. 7 to 9, 2017. For more information, click here.|
Described as the world’s largest annual medtech event, MD&M West is expected to attract more than 20,000 industry professionals. Hundreds of exhibitors offering contract manufacturing services, from injection molding, assembly and packaging to full portfolios of outsourcing services, will be on the show floor. A comprehensive conference program touching on all aspects of medical design and manufacturing as well as educational presentations on the show floor add to the experience. For a complete, searchable list of exhibitors and full conference schedule, go to the MD&M West website.
In addition to PLASTEC West, the event includes five other co-located shows devoted to cross-sector design services, robotics, electronics, manufacturing and packaging at the Anaheim Convention Center in Anaheim, CA, on Feb. 7 to 9, 2017. The event is produced by UBM, which also produces PlasticsToday.