Electronics Outsourcing Grows in Importance for Device Makers

Research from Frost & Sullivan indicates that medical device makers are relying more heavily on electronics manufacturing service (EMS) firms to help them incorporate electronics into their products. Frost & Sullivan expects that trend to continue. By 2019, medtech firms are expected to provide $34.38 billion in business to EMS companies. Last year, the figure was $16.43 billion. Historically, medical device companies based in North America had shied away from outsourcing electronics manufacturing. They assumed their products were too complex and limited in volume to make outsourcing a viable option. For the most part, EMS companies have demonstrated their ability to lower costs, while meeting timelines, and meeting device companies' regulatory requirements.."EMS providers have definitely come a long way in terms of transforming OEM mindset regarding their expertise," Lavanya Rammohan, research analyst, electronics manufacturing equipment at Frost & Sullivan explained to Design News. Still, the complexity inherent in medical device electronics is a factor--one that is contributing to a slow down to manufacturing destinations like China. For that reason, the majority of such outsourcing is performed in North America and Europe.