Global Trends



Industry News
Global Trends
Events Calendar
Web Links

Web Gallery

Advertising  Info


Medical Technology Emerging Markets : Changing Outsourcing Drivers

The changing paradigms in the developed nations have created pressures for the Global Medical Technology Industry. Moreover, as predicted by World economic Forum, the global cost of treating common chronic conditions would need trillions of US $ s in the next two decades.

The conditions such as heart disease and diabetes, thought of as Western diseases, are becoming more common internationally. China’s Ministry of Health recently found that 85% of deaths in the nation are the result of chronic diseases. By contrast, the WHO estimates that chronic conditions are responsible for 60% of mortalities globally.

This has resulted in intensifying the pressures to cut the costs of healthcare technology across the globe. For Medical Device manufacturers, outsourcing continues to be a common strategy to minimize costs related to manufacturing. However, The costs benefits of off shoring manufacturing, however, are gradually eroding in many emerging markets. It is estimated that the labor cost is going to increase in emerging economies which may shift the lure of emerging markets like China.

Meanwhile, the lure of emerging markets like China are shifting. These countries become increasingly important markets themselves as their appetite for medical devices grows, Matlis explains: “Some of the executives in our research told us is that they are looking to globalization more as a means to supply the local market with locally manufactured products. ”Regulatory advantages and tax or tariff savings are the other considerations However, the potential of emerging economies remains strong. It is also estimated that the potential for shifting manufacturing to emerging markets is strong.

( Ref: )

* * * * *