For many health care organizations, finding cost-effective materials for their offices and facilities is an ongoing challenge. Medical device manufacturers have strived to provide the highest quality products possible while at the same time trying to keep labor costs low. Because of this, many organizations have made the decision to offshore in Mexico, where the labor market is staffed by skilled workers and manufacturing costs remain low compared to many offshore hotspots. Throughout Latin America, the market for medical device producers continues to grow more competitive, but the outlook for Mexico remains optimistic.
South American medical device market thrives
According to the International News Magazine, the "2014 Latin America Medical Device Market Reports" showcases strong signals for the Mexican medical device sector. As the second largest manufacturer of this type of equipment, Mexico is positioned well to continue benefiting from its close relationship with businesses based in the U.S., as well as those that offshore in the Latin American nation. The report highlights the fact that many companies operating in Mexico get their source materials from the U.S., but manufacture the completed products across the border. The U.S. is one of the chief trading partners for manufacturers in Mexico, and one of the benefits for consumers is the fact that companies operating in Mexico adhere to U.S. Food and Drug Administration regulations related to the manufacture of medical devices.
A leader among competing nations
Compared with Brazil, Mexico is the top exporter among the Latin American nations. According to the study, much of the focus of medical device manufacturing in Brazil is redirected domestically. On the other hand, Mexico represents 90 percent of exports for the countries included in the report, including Argentina, Chile, Colombia, Cuba, Peru and Venezuela. These countries combined to generate a market value of $14.1 billion, which is expected to rise during the next several years.
To illustrate Mexico's strong medical device market, representatives from Tijuana EDC will speak at the Medical Design & Manufacturing Summit on Feb. 11 in Anaheim, Calif. Enrique Esparza, chairman of Tijuana EDC, will present during a panel discussion called "The Business of Global Manufacturing: Best Practices in Managing Foreign Operations." Esparza will highlight the fact that the medical device industry in Tijuana has experienced an annual average growth rate of 7 percent. In 2013 alone, five medical device manufacturers have established facilities in Tijuana, while a number of others have expanded operations.