The market for the field of contract medical manufacturing (CMM) is projected to reach approximately $90.5bn by 2020. An ageing population combined with emerging technological advances makes this area a profitable if challenging one. With rapid growth emerging as a component of this industry, it is important to look at the specifics, including what exactly is contract manufacturing?
What Is Contract Manufacturing?
Contract manufacturing (CM) is a form of outsourcing. It arises when a company (the client) decides to work with another company to custom-produce components or other materials for the client. In the majority of cases, the CM:
* Obtains the material
* Produces the product
* Handles shipping
This reduces the demands on the client company to maintain specific manufacturing facilities, specialized equipment and employees for producing the entire product.
What Industries Are Suitable for CM?
The basic model is easily translated into a working model for many different industries. CM is a common component in such manufacturing concerns as:
* Automotive parts
* Food production
* Electronic components
* Medical supplies
* Personal care and hygiene products
* Pharmaceuticals
The rationale behind opting for a contractor is simple. It provides the manufacturing concern, including those that are contract medical manufacturing concerns, with diverse benefits.
Why Work with Contract Medical Manufacturers?
Companies have their reasons for signing with a contract medical manufacturer (CMM). They know the potential benefits that can accrue from such an association. They understand that such a partnership – which is CMM at its finest, will help them succeed. They know that the CMM has a vested interest in their company being successful. The company also realizes that, by establishing a good working relationship with the CMM they can:
* Increase sales
* Streamline operations
* Reduce operating and production costs e.g. unit costs for implants and instrumentation
The company can now also focus on designing and innovating new medical technological advances including implants and instrumentation.
Contract Medical Manufacturing
In the medical industry, outsourcing is a means of keeping costing under control. Partnering with a contract medical manufacturer is one means of ensuring the production of the requested devices. However, if the medical production industry wants to make certain its devices are high quality products produced in accordance with the desired and required specifications and delivered on time, it is essential to do extensive research.
As a responsible company, you need to make sure the manufacturer is both responsible and accessible. It must also have a solid reputation in establishing a good working partnership with the medical device company. Do your due diligence. Only after completing all necessary checks, with the company passing without any issue, can the CEO or board go ahead and contract with a contract medical manufacturing.
