Impact of Low Cost Asian Manufacturing on the
European Medical Devices Markets
Asia’s Appeal as a Medical Devices Manufacturing Destination
on the Rise
European medical devices companies are actively considering
outsourcing or relocating their manufacturing to Asia to take advantage
of its significantly lower costs for skilled labour. The favoured
destinations in this respect are China and India, which are both
increasingly aware of the need to conform to international
manufacturing guidelines and standards. However, companies must
understand the bigger picture of such a shift before taking any steps in
this direction. For instance, huge differences in language and culture
could pose a major challenge. English is the preferred language of
business in many parts of Asia such as India and European companies
might find themselves compelled to use it for business purposes even
if it is not their first language. Since effective communication is
essential to keep transition difficulties to a minimum, companies can
consider forming a management team from the particular Asian
country, with representatives that speak both the native and the
business language.
This Frost & Sullivan research service examines the impact of three
regions within Asia – China, India and the Association of Southeast
Asian Nations (ASEAN) – on the European medical devices market.
However, the focus is mainly on China and India. It discusses
opportunities for low-cost medical devices manufacturing in Asia and
assesses the relative attractiveness of key factors such as custom
duties, industrial electricity costs and the availability of skilled labour.