| For some companies, expanding their remit is a risky but rewarding business.
Eric Resnick at The Tech Group asks why more contract manufacturers are
adding contract design services
To understand why more contract manufacturers are adding
contract design to their services, it is necessary to look at the
relationship between device firms and contract manufacturers.
The contract manufacturers always have seen themselves as filling
one void or another in the device lifecycle. By offering services
that appeal to device firms for reasons such as capacity, cost and
capabilities, contract manufacturers are positioned to play
increasingly significant roles in the development of new devices.
Contract manufacturers have been evolving through physical
expansion, by adding services as well as by developing
and adopting new technologies. In the past, when medical
device firms outsourced manufacturing, they realised that
manufacturing, in many cases, was not a core competency;
investing in captive manufacturing capabilities was not the best
use of their capital. Thus, device firms retained only the
processes deemed proprietary or critical to business success,
presenting an opportunity for contract manufacturers. These
outsourcing partners who invested in quality systems, in
addition to manufacturing capabilities, were available to provide
both basic and advanced manufacturing services. |
