Bagla sees steady expansion into global economies. “Historically relatively high gross margins on manufacturing and a focus on U.S. markets have kept manufacturing located in North America including Mexico and Puerto Rico. But as markets expand and price points in emerging countries put pressure on margins we are starting to see more and more medical device companies come to us for questions about manufacturing in India China or other Asian locations” says Bagla.
And he says clients want to look not only at global outsourcing but also global off-shoring where the client builds their own R&D center or their own factory in these locations.
The next three billion people to be served by American medical device companies are located primarily in China in India and in the emerging economies of Eastern Europe Africa and Latin America says Bagla pointing to attractive markets that these countries offer for device makers. “While China has an older population than India and so more medical needs associated with aging American companies have far fewer IP worries about manufacturing and designing in India” he adds.
Last updated: July 9th, 2024
