Among the most prominent news stories of the past year is that of the decline of the domestic automotive industry and, with it, the plight of Michigan manufacturers. To weather the economic storm, suppliers to the automotive industry have had to seek business in other sectors. And, supported in many ways by Michigan-based organizations, many suppliers have set their sights on the relatively stable medical device industry.
Crain’s Detroit Business featured coverage of the 5th-annual MichBio Expo last week, specifically highlighting a panel discussion focusing on diversifying to serve the medical device industry. In it, Jeff Kaczperski, president of injection molder Omega Plastics (Clinton Township, MI), offered a variety of tips for suppliers looking to diversify into the lucrative medtech marketplace. According to the article, his advice included familiarizing oneself with the market, devising a concrete business strategy and specific steps for fostering growth, and preparing to respond to customers’ potential questions of loyalty should the auto industry bounce back in full force.
But is the transition really that simple? And, more importantly, what does this mean for medical device OEMs?
MPMN touched on these issues in an editorial earlier this year. As we noted, these newcomers could present cost benefits to medical device OEMs. However, the real issue with the diversification effort is: Will quality be compromised? Can automotive suppliers cater to the stringent requirements and demands of the medical device industry with such proposed ease?
What do you think, faithful blog followers? Is diversification a good thing for the medical device industry, or are you troubled by the potential consequences?
Tags: Michigan, Regional News
I certainly think that for the long term its an interesting trend. Bringing prices down can be both an advantage and disadvantage - depends who you ask, the real benefit in my mind is better innovation.
The scary part is defenitely the quality issue, in particular while the suppliers try to find their footing in the Med-Dev world. not all devices are made equal and neither are the development processes.
For the automotive suppliers that are making the switch, I think they each have to sit down and think if they really want to apply themselves to this industry, and if the answer is yes then to methodically plan our their strategy. It can’t be a ‘fly by the seat of your pants’ decision.
Coming from the auto industry several years ago, I would say that it is possible to make the jump, but not without having the correct infrastructure in place up front. Quality in one industry does not necessarily translate to quality in another industry. That being said, it is not impossible, just difficult.