What are the Difficulties Faced by Medical Device OEMs?

What are the Difficulties Faced by Medical Device OEMs?

By Manufacturing Technology Insights | Tuesday, October 13, 2020

The healthcare sector has to deal with various difficulties related to medical device OEMs.

FREMONT, CA: The idea of Industry 4.0 is increasing the demand for digital transformation in several industries, which includes medical device original equipment manufacturers. The medical device production industry prioritizes discrete manufacturers. The question comes where the enterprises producing medical device equipment will find information related to applying digital transformation models for solving the problems.

Top 10 Medical Device Manufacturing Solution Companies in Europe - 2020To solve the issue, it is necessary to understand the distinct challenges the medical device OEMs deal with. Such difficulties can range from narrow profit margins selling non-commoditized equipment to improving several manufacturing facilities' operational performances. Here are some of the challenges which the medical device OEMs have to face.

1. Providing Value-Based Equipment and Services in a Static Niche Market

The medical device equipment manufacturers are dealing with the rising expenditure involved in purchased equipment and maintenance. Several medical device manufacturers consider that the equipment's increasing expense does not match with the value that OEMs presently provide.

It is necessary to maintain the purchased equipment also so that it can function efficiently. The high expense of the maintenance reduces the point which medical device manufacturers make related to their value from the purchasing equipment. To decrease the cost and earn some profit, the medical device manufacturers push the end-users' burden, an individual, or a healthcare center. The medical device OEMs have to justify the equipment they pass into the medical device manufacturers or decrease maintenance costs.

 2. Protecting Profit Margins for Niche Equipment

In several situations, the equipment OEMs developed for medical device manufacturers are niche compared to the other mainstream machines like lathe machine or average CNC. Such machines' distinct characteristics mean that OEMs have a restricted market through which they can sell their products. The advantages of economies of scale and mass commercialization become limited.

OEMs can solve the issue by increasing the efficiency of manufacturing procedures to decrease downtime and remove scrap. The facility of value-added services, along with the original equipment, will also offer a path for generating revenue while reducing medical device manufacturers' problems by using the equipment.

See Also: Top Tech Solutions for Healthcare

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