Over the past six months I have had the pleasure to work with Julie Fraser and the Cambashi team as a sponsor of a Medical Device Manufacturing research study. The entire process was quite interesting, seeing the project start back in late 2011 as an idea, which then came to full fruition a few weeks ago. We learned a great deal, thanks to the generosity of all those who provided responses to the survey, both on line and via telephone.
One of the conclusions that became readily apparent is that the Medical Device manufacturing industry has a unique growth opportunity over the next couple of decades, given the aging of the world’s population. Based on the responses, over half of the manufacturers surveyed believe their new product introductions will increase by at least 10 percent – a quarter think it will expand by over 20 percent! This is great news from a potential market perspective. But, equally daunting is how this community will be able to actually overcome the challenges associated with operational planning, manufacturing, quality and compliance.
According to the research, the best in class (or “Advancers”) are able to simultaneously improve product innovation, quality and profits, which is truly an impressive feat given the incredible complexity that is involved coupled with the need for continuous process improvement in order to innovate and maintain regulatory compliance. In fact, only one in four manufacturers is able to claim this accomplishment. So, to the top 25 percent customers and suppliers, I commend you for your efforts. Well done Advancers!
For the rest of you, there is good news. Based on what was learned in the research study, there are many things that can be done to help improve your performance and become an Advancer. Please see Figure 1 with a list of the top six opportunities for improvement. In the future I will offer some perspectives on what different options are now available, which you can then use to help improve your business and increase profitability. The market is there for the taking … the only question now is how well can you execute upon your plan to be part of that growth.
If you are interested in reading the full report, here is a free copy of the Cambashi Medical Device Manufacturing research.
To continue reading on this topic, please read “5 Growth Strategies for Medical Device Manufacturers.”