OEM contract manufacturing to see $11B growth surge by 2011
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 10/26/2007 11:25:00 AM
The next few years are expected to be lucrative ones for OEMs and contract manufacturers processing raw materials for medical device companies—especially in niche areas and among OEMs that offer flexibility to move with market changes.
The materials processing area of contract manufacturing for device manufacturing will grow from $13.9 billion globally to $25.41 billion by 2011, according to a new report by Kalorama Information.
The trend toward incorporating outsourced technologies will be particularly prevalent in product areas where biocompatibility is required for the fusion between biotechnology, chemistry, and medical device technologies. OEMs with core competencies that lie in only one of these areas will require expert input in other areas that are complementary.
Future growth in the medical devices/drugs fusion industry is likely to come in orthopedics and implants as well as in the cardiovascular devices sector, where issues relating to biocompatibility, antimicrobial sterilization, device coatings, and drug release mean that specialist contract manufacturers likely will see increased demand.
"The medical device industry today is similar to the electronics industry 20 years ago, when around 20 percent of the cost of manufacturing was outsourced," says Steven Heffner, publisher of Kalorama Information. "That number has now elevated to an estimated 90 percent. In the medical device industry across the mainstream nine market segments, the level of outsourcing of manufacturing costs is currently around 30 percent, so there is considerable room for growth and manufacturing efficiencies to be gained during the next five to 10 years."
For the report that analyzes the market in nine therapeutic areas, leading competitors, and current issues and trends affecting the industry, visit http://www.kaloramainformation.com/OEM-Contract-Manufacturing-1378138 .
