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Medical Device Manufacturing: Supplier Opportunities
Medical Device Companies Looking For
Contract Manufacturing And Outsourcing Partners
Today many
medical product companies are outsourcing more of their
operations to subcontractors. Opportunities for the
Contract Manufacturer in the Medical Devices Sector
highlights opportunities created by increased
technological complexity in product development,
opportunities for foreign contract manufacturers, and
opportunities created in an expanding market-including new
uses and the convergence between the medical devices and
pharmaceutical industry. Globally, the medical-device
contract manufacturing market is growing about 12-15
percent a year, much faster than the 8-9 percent growth in
overall medical manufacturing.
The
decision by an OEM to use a contract manufacturer is based
on many criteria that need to be balanced – cost (labor
and overhead), access to technology, and focus on core
competencies .
A clearly
articulated strategy defining where to focus outsourcing
and where / how to leverage outsourced capabilities.
Carefully –
structured and proven processes for identifying,
evaluating, selecting, and managing partners.
CSOs
(Contract Service Organizations) are defined as entities
organised to serve the medical device industry and
encompassing the following contracted functions:
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Research
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Design
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Development
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Engineering, specialising in biomedical (with sub
specialities in process, product, quality, facilities,
equipment, tooling…)
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Software providers; programmers (product or process)
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Quality systems
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Statistical analysis/systems
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Regulatory (including product submissions and / or
responses to regulatory agencies)
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Testing (labs, bench, standards, verification,
validation…)
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Clinical trials
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Calibration
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Packaging
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Sterilization
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Industry – specific consulting
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The key
success factors is contract manufacturing relationship
include trust, good communications, a “Partnership
Mentality,” and flexibility (on both sides).
Opportunities For Suppliers :
The medical
product manufacturing industry offers market opportunities
for many supply industries. The industry is innovation
driven and is looking to develop new products for existing
and new markets.
Sometimes
it means production shifting to low-cost locations.
The US
medical device firms have moving beyond labour costs in
Mexico and Puerto Rico and are considering China for lower
material costs or India for lower development costs.
But other
times it means opportunity, as medical-device
manufacturers increasingly look to shift manufacturing to
their subcontractors, including injection molders and
other processors. Many of them, in turn, are upscaling and
updating their capabilities.
In one of
the surveys covering European Medical Device Industry, the
following areas were identified wherein the industry is
looking for new suppliers :
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Manufacturing
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Injection moulding and extrusion
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Testing
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Clinical trials
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Design
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R&D
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Coating/surface treatment
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Logistics / distribution
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Calibration
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Analytical services
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Packaging of products
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New materials / equipment
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Components / production of components
The Indian
Industry has also showing growing trends in some of the
areas like : Manufacturing, Injection moulding and
extrusion, Testing, Calibration, Analytical services,
Packaging of products, Components / production of
components etc.
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