Contract manufacturing


relationships Building positive


Report after report predicts massive increases in revenue for the medical device contract manufacturing sector in the near future – with long-term projections just as favourable. And why not? Between securing technical expertise and the right equipment, there are plenty of reasons to partner with a contract manufacturing organisation. But beyond the positive headlines, what are the challenges OEMs face when working with third-party partners? And what could geopolitical tensions ultimately mean for such arrangements? Andrea Valentino investigates, talking to Ash Shehata and Jenny Harte, both of KPMG.


edical manufacturing is exploding. According to work by KPMG, the global sector is due to enjoy a CAGR of 5% over the next decade, reaching almost $800bn by 2030. That’s echoed by the rise of specific companies: industry titan Stryker announced a revenue jump of almost 10% last September, even as Siemens Healthineers and J&J posted similar figures. Nor is this bonanza particularly hard to understand.


M


Between new technologies and ageing populations, there is vast space for medtech to thrive, in fields as motley as nanobots and hearing aids. Yet with soaring growth comes challenges. It may take between three to seven years to bring a new device to market. But as countries like China bolster their own medtech industries by 7% a year, that’s often too slow for OEMs squeezed by ever greater competition. By the time you add in


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Medical Device Developments / www.nsmedicaldevices.com


Zoriana Zaitseva/Shutterstock.com


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