Medical Device Industry in Mexico Reduced Risk. Reduced Cost.

The Medical Device Industry in Mexico

The medical device industry in Mexico is the largest exporter of this class of products to the United States, the largest exporter of medical devices in Latin America, and eighth globally.

According to information from the PAPS Medical Devices Section of the National Chamber of the Pharmaceutical Industry (CANIFARMA) Mexico is the leading exporter of medical devices to the United States; the world’s third-largest exporter of tubular suture needles; the fourth exporter of medical, surgery, dentistry or veterinary instruments and appliances; and the fourth largest exporter of medical furniture, syringes, catheters, cannulae, and similar instruments.

Also, data from a recent report on the medical device industry in Mexico by the consultancy KPMG, indicate that the country has developed great potential for this sector by being the largest exporter of medical devices in Latin America and the eighth worldwide.

“In Mexico, about 2,500 manufacturers specializing in medical devices operate, the number of companies registering exports was more than 600; the average Annual Growth Rate of production is estimated at 4% and consumption is estimated at 1%,” the report says.

For its part, the Mexican Association of Innovative Industries of Medical Devices (AMID) noted that the medical device industry in Mexico is a national and international benchmark for employment, growth, and participation in international markets and investment.

“The value of Mexico’s medical device industry is approximately US $4.9 billion, representing 0.21% of the value of GDP, 0.8% of total foreign investment, and 1.57% of total manufacturing,” says AMID. Some of the well-known companies that operate in this sector of the Mexican economy include Medtronic, Becton Dickinson, 3M, Stryker, Boston Scientific, Cardinal Healthcare, Johnson & Johnson, among others.

Fernando Oliveros, President of AMID, added that the medical device industry generates around 140,000 jobs in Mexico and also promotes research and development of SMEs, small businesses, and service providers.

“Today, it is necessary to speak much more open to finding solutions in each of the areas of opportunity that exist. The benefits of the medical device industry in Mexico need to be fully expanded to all the links in the country’s value chain,” Oliveros said.

Opportunities for the Suppliers to the Medical Device Industry in Mexico

According to Miguel Angel Félix, Treasurer of the Medical Devices Cluster of Baja California, and General Director of Quality Assemblies Mexico, in this industry cluster companies work under a collaborative scheme to make the region more competitive.

“The medical device industry in Baja California registered a recent annual growth of close to 9%. This accounted for nearly a doubling of manufacturing growth nationwide. In the region, there are about 76 manufacturing companies, which account for about 50% of the manufacture of medical devices in Mexico. Also, recent data indicates that the sector has created a little more than 71,000 direct jobs in the region,” Félix said.

He added that another unique aspect of the medical device industry in Mexico is that between 70% and 80% of what is manufactured is finished product. This is unlike other productive sectors or clusters that make sub-assemblies.

Industry watchers have observed that, by encouraging domestic suppliers to participate in the medical device industry in Mexico, they can be integrated into the country’s export supply chain. By not relying on the domestic market or government purchases because all production is for export, it becomes attractive to a domestic supplier by making capital investments and to have the opportunity to diversify its market. Although the medical device industry is a highly regulated sector investment in the sector is well worth it since it is virtually recession-proof. Given the graying of the population, it can be observed that the industry will experience steady growth for the foreseeable future. The bottom line is that the medical devices industry in Mexico is growing and stable.

Given this outlook, several Mexican states with significantly sized medical device manufacturing clusters are developing strategic plans that include efforts to expand the development of suppliers. Increasingly, programs are being put in place to help them to become certified in standards that are required such as ISO 13485. Additionally, Mexican states with significant medical device manufacturing clusters organize workshops throughout the year for the entire industry, but particularly for domestic suppliers to integrate them into the supply chain and to familiarize them with the rules and regulations that govern activities in the sector.