News

Accudyn is committed to staying informed about the latest trends and strategic discussions shaping the medical device industry. The recent MPO Forum in Costa Rica provided valuable insights, and we’re sharing some of the most relevant takeaways.

Key Strategic Considerations in Medical Device Manufacturing

The forum featured in-depth discussions on optimizing manufacturing approaches, particularly concerning the “Make vs. Buy” decision, outsourcing strategies, and facility establishment in Costa Rica.

1. Solving the Make vs. Buy Puzzle

On April 24, 2025, a panel of experts, including Cecilia Monge from Hologic Surgical, Johnny Chinchilla from ICU Medical, Nicolas Medrano from Terumo BCT, Esteban Corrales from Confluent, and Save Mabie from Cinova Medical, moderated by Jim McCormack, explored the complexities of deciding what to manufacture in-house versus outsource. 

The panelists emphasized the importance of maintaining stringent control over the manufacturing process to ensure quality and regulatory compliance, and addressed the challenge of effectively navigating language and cultural differences, especially given the life-saving nature of medical devices. 

Talent acquisition was acknowledged as a significant challenge in this growing sector, and the necessity of having specialized knowledge of processes and equipment was highlighted. The panel also explored the intricate balance of cost, process efficiency, return on investment, resource allocation, and engineering considerations required for successful product innovation. 

Effective strategies for building strong relationships with suppliers were discussed, including clear contracts and communication, and the importance of achieving production speed without compromising quality was stressed. The discussion underscored that Original Equipment Manufacturer (OEM)- Contract Manufacturing Organisation (CMO) partnerships require significant time (18-24 months) to establish trust and alignment, and that OEMs prioritize CMOs with strong engineering, operations, and customer service. Finally, challenges related to managing supplier transit times for contract manufacturing were addressed.  

2. Outsourcing vs. Insourcing Strategies

The forum also provided a comparative analysis of outsourcing and insourcing models. The discussion included the advantages of outsourcing, such as reduced labor and capital expenses, increased efficiency and scalability, and faster time-to-market, with panelists stressing the importance of aligning cultural values with outsourcing partners. 

Challenges associated with outsourcing were also examined, including maintaining process control, ensuring clear communication, and navigating cultural differences, highlighting the need for well-defined contracts and communication channels. 

The benefits of insourcing were presented as improved quality control, faster issue resolution, potential cost reduction (depending on volume), and enhanced employee development and knowledge sharing. The challenges of insourcing were identified as establishing effective communication and control channels within internal teams, addressing language barriers, and managing resource and cost allocation, as well as the need for specialized knowledge and potential training investments. 

Key factors that influence the decision between outsourcing and insourcing were highlighted: capabilities (technical, compliance, risk management), speed to market, and flexibility, along with the importance of cultural fit and trust between companies. The characteristics of an ideal relationship between an OEM and a CMO were described, emphasizing trust built over an extended period (18-24 months), and essential CMO strengths such as engineering, program management, operational excellence, and customer focus, along with the importance of long-term supply agreements with mutually beneficial terms. 

The discussion also explored the factors that drive medical device OEMs to outsource manufacturing, such as cost pressures and the need to deliver returns to shareholders, as well as the outsourcing of non-core processes or those requiring specialized equipment. 

Finally, panelists discussed the evolving trend of incorporating device design and material specification processes within the manufacturing location, highlighting the associated challenges in attracting and retaining talent.  

Costa Rica: A Strategic Hub

Costa Rica’s importance as a strategic hub for medical device manufacturing was a recurring theme. The country offers a thriving ecosystem, a concentration of companies, specialized resources, and growing expertise, making it an attractive location for expansion.  

Accudyn’s Commitment

Accudyn understands the importance of high precision and quality manufacturing for life saving medical devices. We offer a unique solution to outsource precision plastic components for your medical device products while still upholding a zero defect rate focus, high quality standards, and regulatory compliance systems. Giving you peace of mind about your product and a faster time-to market. Accudyn uses an award-winning real-time production monitoring software to streamline our processes for operational excellence at our United States, Mexico, and Costa Rica facilities. We are able to monitor and control the resources, production, and quality of each project, ensuring on time delivery and sustainability. Accudyn is here to support you every step of the way as a trusted medical plastic component provider.