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Outsourcing Booms in Medical Manufacturing

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Ann R. Thryft
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Re: Medical yes, military no
Ann R. Thryft   7/11/2013 2:01:17 PM
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Rob, the products made to mil spec vs products made with COTS hardware and software were pretty easily distinguishable until ROHS. After that, things got pretty confusing, especially the terminology. But building a product with COTS components that still use lead solder doesn't make a product mil-spec. Mil-spec was a long, complicated, gnarly process. As to what terms are used now, I don't know. My knowledge--which came from OEMs and board-level suppliers who bought components and sold their boards as sub-systems to OEMs--is now about 5 years old, so I'm not up to date, either.

Rob Spiegel
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Re: outsourcing in medical manufactuiring
Rob Spiegel   7/11/2013 8:33:35 PM
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Yes, Vimalkumarp, that was the original arguement that sent bilions of dollars in manufacturing to China. In many cases, that was a wise idea. Yet I remember at the height of the rush to China, a distribution executive noted that his customers were shifting to China without any thought or investigation as to whether it was the right decision. Their investors expected them to shift to China to save money, so they did so.

vimalkumarp
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Re: outsourcing in medical manufactuiring
vimalkumarp   7/12/2013 1:09:44 AM
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@Rob: Yes as you have rightly mentioned cost arbitrage was one of the most important reasons for the shift to China for manufacturing. Now other avenues like Costa Rica, Vietnam,Bangladesh are also in the arena. Quality issues were observed in China and cost is also rising which has forced  the device manufacturers to explore options other than China.

Rob Spiegel
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Re: outsourcing in medical manufactuiring
Rob Spiegel   7/12/2013 1:22:53 AM
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Yes, Vimalkumarp. What I'm hearing is that companies are seeking manufacturing closer to their markets. Eastern Europe for Europe. Mexico and Central America for the U.S.


vimalkumarp
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Re: outsourcing in medical manufactuiring
vimalkumarp   7/12/2013 1:35:43 AM
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your point is excellent that companies are seeking manufacturing closer to their markets as this saves lot of money is logistics. Ireland is an example for this kidn of choice. Almost all medical device giants have their manufacturing setup in Ireland.

Rob Spiegel
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Re: outsourcing in medical manufactuiring
Rob Spiegel   7/12/2013 10:39:11 AM
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Good point on Ireland. Eastern Europe is not the only European territory receiving the benefits of outsourced manufacturing. 

vimalkumarp
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Gold
Re: outsourcing in medical manufactuiring
vimalkumarp   7/12/2013 12:36:39 PM
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i have personally worked with 2-3 major companies with their setup in Ireland. India is slowly and sleadily becoming a design hub

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