One of the major trends currently in the medical device industry is the increase in medical device outsourcing. Globally, the outsourcing market is forecasted to grow 11.5% over the next seven year period, while the U.S. market is steadily growing at 1.5% annually. The reason a medical OEM would choose to have their production carried out overseas, instead of close to home in the US, is very straightforward: cost cutting. By outsourcing their devices’ production offshore, to where the factories can offer lower total costs, these OEMs accomplish their cost cutting goals.
Every company looks for advantages over their competitors who are trying to appeal to the same group of consumers as they are. Just like these medical OEMs, their consumers are also making their purchasing choices based on price as long as the quality still meets all of their standards.
Since consumer choice dictates the direction of the market, and they want cheaper products, so too the medical device OEMs want cheaper products.
OEMs faced with this cost dilemma, even after staff cutbacks and reduced R&D spending, find their answer in offshore manufacturing.
Once they shift their production offshore, the question becomes how to choose the right contract manufacturing partner. It’s a strategic decision as important as choosing to outsource rather than produce in-house. With a massive and still growing contract manufacturing industry, making the right choice becomes harder and harder. It only makes sense for medical device manufacturers to choose to work with contract manufacturers who can offer low shipping costs, or, like Sanbor Medical, those that include shipping as part of their service. Our customers only have to worry about picking up their finished device from our California warehouse. When we quote our customers, we include even the soft costs in the manufacturing process so they know exactly what they will be paying for. (Our blog on consolidation has a handy chart to help you visualize this.)
Another consideration medical OEMs have is what some refer to as “Asia Fatigue”. Many offshoring companies did not consider the time difference between the overseas factory and the US time zones when they decided to go offshore. We at Sanbor Medical made it our priority to eliminate this issue for our clients by having a fully functional headquarters in the US. We work at the same time as our clients and speak the same language as them thereby completely eliminating the 12-hour time difference and language barrier. Sanbor Medical’s service and staff are available whenever you need them.
With such high demand for outsourcing coming from countless medical device OEMs in need of competitive prices, there exists many offshore factories trying to offer their low prices with quality devices. When choosing the right strategic partner as your contract manufacturer, price is only one factor to consider. Sanbor Medical has over 17 years of experience in this field, has all the qualifying certifications, and has a US Headquarters to provide timely service. These are qualities that are very rare to find consolidated into one single medical device manufacturer.
If our expertise has piqued your interest, please contact us either through the form below or directly through email or phone at email@example.com or 484-664-2673.