In the manufacturing world, several key players exist. Historically, the most prominent are the original equipment manufacturers (OEMs). They are responsible for the complete product. However, more recently, another segment of the industrial complex is becoming increasingly more prominent. They are contract manufacturing organizations (CMOs). They perform their role in many diverse industries. These range from the automotive to medical device production. In fact, medical device contract manufacturing is increasing as OEMs find it more profitable to outsource.
Why the Increase?
Contract manufacturing for medical devices is growing quickly. The reasons are simple and, essentially, economic. By hiring CMOs, OEMs can improve various aspects of their production. CMOs
- Allow increased efficiency for device development
- Deliver a specialized skill base to produce certain specialized equipment. While an OEM may not have the trained personnel, a CMO does.
- Make available the exacting facilities required for the assembly of medical devices e.g. cleanrooms
- Help in the development of new product faster and less expensively
Overall, many OEMs prefer to hire a CMO specializing in medical device contract manufacturing for its savings. By using a medical device CMO, they are able to reduce their labor costs. They do not need to hire and train people to do the work. They also do not have to purchase specialized equipment or rent, design or construct the right type of facilities.
An ongoing shortage of specialized talents at OEMs has resulted in a change in the way they consider and work with CMOs. As CMOs adopt to this enhanced role, they continue to perfect their operations and skills to address the growing and changing needs of the EMOs.
Medical Device Contract Manufacturing
Recently, OEMs have increased their reliance on the services of COMs. This is becoming particularly obvious when it comes to the production and assembly of medical equipment. Medical device contract manufacturing is becoming increasingly common as OEMs strive to retain high quality while reducing labor costs.