Originally Published MD&DI November 2009
US Endoscopy: Keeping It Local and Focused
As companies send manufacturing offshore in large numbers, US Endoscopy is committed to making product innovations in its home state.
US Endoscopy, located in Mentor, OH, has achieved 166% revenue growth during the past five years. Photos courtesy of US ENDOSCOPY.
Within the niche of gastrointestinal (GI) endoscopy, US Endoscopy (Mentor, OH) stands out from the competition with its problem-solving products that come from listening to customers in the trenches. It began as a family-operated business in 1991 and has since grown into a successful international medical device company—all while remaining loyal to its roots in northeast Ohio.
In 2006, MD&DI named US Endoscopy a company to watch for its evolving development of proprietary endoscopic devices. The following year, the magazine recognized the company’s regulatory and quality team for its efforts in taking its compliance system to the next level.
The Carr-Locke injection needle helps doctors when dealing with tortuous anatomy during endoscopic retrograde cholangiopancreatography, a procedure that uses an endoscope and x-rays to diagnose potential problems in the digestive system.
“US Endoscopy has been successful over the last five years because of a focused and committed approach to commercializing niche products that are innovative, add value, and solve problems for GI physicians and nurses in the field,” says Tony Siracusa, COO of US Endoscopy. The 37 devices launched during this period alone comprise 25% of the company’s current product portfolio.
In addition to product expansion, the company has strategically expanded its direct sales force by more than 20% in the United States and new international locations. It has achieved all of this while keeping its manufacturing local. In 2008, the company ranked 69 on Weatherhead’s list of the 100 fastest-growing companies in northeast Ohio.
“Part of our success is the culture that we instill in all of our employees that drives creativity and entrepreneurship,” says Siracusa. “We choose not to outsource to low-cost [labor] countries, and our goal is to provide cost-effective products that are designed and manufactured in northeast Ohio.”
US Endoscopy doesn’t outsource for low-cost labor and instead keeps its manufacturing in northeast Ohio.
To boost its time to market and overall service, the company keeps its product marketing managers, design engineers, and manufacturing support team in close proximity. It also tries to source local services and products whenever possible. “If we continue to differentiate ourselves based on quality, selection, and service, we will continue to keep manufacturing in northeast Ohio,” says Siracusa.
US Endoscopy’s slogan, “listening and delivering solutions,” is central to its approach in the field. Its products strive to provide doctors with simple solutions to their difficult endoscopy problems. The company’s product funnel process was born out of feedback from physicians, nurses, and technicians worldwide, and it has a pipeline of several new products that are at various stages of the product development process.
The Roth Net retrieval net is a flexible pouch used for polyp retrieval and extracting foreign bodies.
“Our customers know that part of the value in working with US Endoscopy is that their voices will be heard—regardless of how big or small the concept may be,” says Siracusa. Ideas are then prioritized, and the best products are commercialized. It’s a formula that has worked well for the company. Siracusa also attributes increased product use to the company’s hands-on training approach with key opinion leaders and clinicians worldwide.
Now and the Future
US Endoscopy has achieved revenue and output growth of more than 166% during the past five years. During this period, the company’s manufacturing operations team was also faced with driving operational stability, continuous improvement, product development, and compliance in a FDA-regulated environment. It also achieved the following operational successes, which allow the company to stay ahead of the competition:
• Product selection. More than 140 different products are manufactured at its Ohio location.
• Customer service. Customer order fulfillment rate improved from 85% in 2005 to 99.5% at the end of 2008.
• Quality. The company’s customer complaints for product performance issues are less than 0.01%.
US Endoscopy will continue to remain focused on its strategy of providing niche problem-solving devices to clinicians worldwide, according to Siracusa. It also plans on territory expansion and has implemented a dynamic one-year and five-year plan that will keep the company at the forefront of the growth curve.
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