MPO Magazine: The Big Shift: Nearshoring Trends in Medtech Manufacturing “Medical device companies are on the move,” said Lisa Anderson, president of LMA Consulting Group, a Claremont, Calif.-based consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.”For example, Costa Rica continues to gain significant nearshoring opportunities”.

“For many decades, medical device manufacturers (MDMs) established operations in low-cost countries (primarily China) to take advantage of inexpensive labor overseas. However, escalating labor costs in China continue to erode this cost advantage; in response, over the last 10 to 15 years, nearshoring to Latin America, Mexico, and the Caribbean by U.S. companies has grown steadily. Now, with COVID-19 causing serious, long-duration supply chain disruptions, MDMs are even more motivated to shorten their supply chains and reduce operational costs through nearshoring.

Now, more than two years into the COVID-19 pandemic, supply chain shortages are still rampant and delays continue to disrupt manufacturing processes—in fact, for some components and materials, lead times are longer now than they were during the peak of the pandemic. Further, when supply chains finally do settle down, how long will the calm last, and what will happen when the next international crisis erupts? Medical device companies are definitely rattled.”


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