Local Production Impacts Medical Device Manufacturers

Baytech Plastics Medical Devices

Cost savings. Every business looks for it and medical device manufacturers are no exception. One of the top ways these companies have discovered to save costs is to increase their local assembly. How does this affect you, the end user? By passing on that ever-elusive cost-savings to you.

The Medical Device Manufacturers’ Perspective

Medical device manufacturers have long been at the mercy of overseas facilities. The large-scale factories and cheap labor market made it very lucrative for companies to outsource their assembly sites. But while the cost per unit may have been less due to the cheaper labor market overseas, times have changed. Today, more and more companies are looking for ways to produce their devices closer to home.

Quality control is a major factor in off-shore production. It is more difficult for manufacturers to control output and product quality overseas. While the distance poses no trouble when things go smoothly, when problems arise, there can be delays and difficulties in getting the issue resolved. Resolution generally takes more time than it does if the same problem occurs in-country.

Another consideration that has become of more and more concern is resource sourcing. Obtaining raw materials for products means finding a supplier. Lax regulations and unscrupulous suppliers have resulted in sub-par raw materials being sold and used in device manufacturing. This can lead to poor or even unsafe products, prompting recalls and damaging the medical device manufacturers’ reputation.

To no one’s surprise, transportation costs have skyrocketed in recent years, making it more expensive than ever to rely solely on overseas producers.

The Benefits Of Local Production

There are many benefits to localized production. Besides eliminating the high development costs of going off-shore, in-country production has many tangible and intangible benefits. Advancements in technology and the increased use of robotics, have allowed medical device manufacturers to save on labor costs allowing them to bring production closer to home. The increased use of robotics and technology has also resulted in greater output, tighter quality controls and better quality products.

Medical device manufacturers provide some of the most critical and cutting-edge technologies available in the medical field today. Local production allows these facilities to hire the best and the brightest in the field, bringing a highly skilled labor force to the country, investing in the local labor market and, often, earning a reputation as a worldwide leader in their area of expertise.

Local production allows for better quality control. Line managers, project managers and CEOs alike can be on-site to oversee the products as they are being made and ensure high-quality outputs. Raw materials can be sourced responsibly. The safety and responsible procurement of the raw materials is assured by government inspections and regulations that may be lacking overseas. Waste products are more likely to be disposed of responsibly or recycled and repurposed than overseas.

Lower transportation costs result in cost-savings for both the manufacturer and their customers. Transportation savings can be realized from the time the raw materials are collected to the time the final end product is delivered. Further cost-savings can be achieved by locating the manufacturing facility close to the supply of raw materials, thus cutting down even more on transportation expenses.

Local production is a benefit to both the manufacturer and the end user alike.

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