A 20-Year Retrospective on the Medical Device Manufacturing Industry

Twenty years ago, the medical device manufacturing industry was a different environment. While many device makers were relying on manufacturing partners to handle certain aspects of the product development lifecycle, they were unwilling to talk about it or even admit they were doing it. Perhaps it was a perception of quality (e.g., if not done by the device manufacturer, was quality less?), perhaps it was considered a secret competitive advantage (e.g., if they don’t know who I’m working with, I can remain a market leader!), or perhaps it was for another reason altogether. Regardless, as someone who reported on the industry, it seemed like a silly attempt to keep secret what everyone already knew. Medical product outsourcing was alive and well and almost everyone producing devices for healthcare was using it.

Group Publisher, Howard Revitch, confirmed this in a discussion I had with him regarding this time period. “Twenty years ago, people (especially the OEMs) would not admit they outsourced as it was deemed a ‘dirty’ word. Maybe due to events in other industries, people still considered outsourcing a negative business practice and represented the U.S. ‘giving away jobs’ to China.”

On the other hand, however, Revitch recognized the patterns developing within the industry. He saw the outsourcing trend as an opportunity for a magazine focus. It was these early realizations that led to the development of MPO magazine.

“I saw a trend. Many people were moving away from using the term ‘Contract Manufacturing’ and instead were branding themselves as more of an ‘Outsourcing Services Provider,’” Revitch recalled. “Companies started to make the change from advertising ‘products’ to marketing their ‘capabilities and services,’ which went beyond a product. They were interested in highlighting specialty offerings, value-added capabilities, sterilization, packaging, design, R&D, logistics, and more. I wanted to focus on this aspect.”

In 2003, there were only two issues produced for that launch year, but their focuses remain today as two of the most popular topics covered in MPO and continue to be most often associated with the brand. The premier issue, which came out in June, presented the first of the annual Top Companies Reports, which has remained the largest and most supported editorial issue for the brand. In 2003, the list was broken into two sections with one focusing on more traditional medical device manufacturers (top 20 by revenue) while the other segment covered the top 10 in-vitro diagnostics producers (again, by revenue). At some point, the lists were combined into one, giving birth to the top 30 medical device manufacturers, which is the focus of the July/August issue of MPO.

The second issue of 2003 was sent to readers in October and its main feature was an “Outlook on Outsourcing,” which is identified today as the “Full Service Outsourcing” issue in May. This issue focuses on the core of what MPO is—a dedicated examination of the trends and happenings within the outsourcing space, what’s driving the sector, and what challenges both service providers and OEMs are facing.

“What surprises me today is just how many supporting companies refer to themselves as ‘full service providers’ when really, their primary focus is on one or maybe two core competencies. They may not literally provide a ‘full service’ offering, from soup to nuts, but within the areas they are focused—whether molding, machining, assembly, etc.—the value they bring is a ‘full service offering.’ I like to think MPO helped to define the importance of the ‘full service offering’ and they ran with it within their area of expertise,” Revitch explained.

As his brand so often does, Revitch is excited by the future prospects for MPO and all it encompasses today, from “just a magazine” to a wealth of digital offerings that span website, newsletter, social media, podcast, and video. Further, the overwhelming reception the live events have received from both sponsors and attendees is a testament to the effort that’s been put forth on the brand over the course of 20 years. “Moving forward, I want to see MPO remain as the primary voice of the industry, keeping readers informed on the latest and greatest technology innovations, industry trends, new capability offerings, and overall outsourcing developments,” admitted Revitch. “I hope MPO will continue to identify and define what the outsourcing landscape looks like currently and what’s expected to come.”

In closing out our conversation, I asked him if he had anything more he wanted to share. Revitch was quick with a response. “To see where we were 20 years ago compared to where we are today is a testament to the vast support we have received from our readers, advertisers, board members, and others. I, along with my outstanding staff, continue to be educators on what MPO and the market we serve is all about.” 

Sean Fenske, Editor-in-Chief
[email protected]