How Do You Demonstrate Value to Today’s Medtech Customer?
The Affordable Care Act (ACA) has created a new order in medical technology. Today, companies operating in this space are stressed to provide a compliant level of care at a competitive price. Historically, ever-higher SG&A (selling, general and administrative expenses) and COGS (cost of goods sold) were the norm in the medtech business, which the market managed with incremental increases in the cost of care. Back in the day, the main business driver differentiating your products was utilizing the latest and greatest technology—at any cost—because the additional expense would be absorbed somewhere in the value stream or directly by consumers.
The innovation expectation still exists; however, external forces have crashed the party, including technology convergence from other industries, buying groups leveraging deals, emerging market competitors and ever-present government intervention. Plus, with an average medical device design cycle of 18 to 36 months, the pressure to produce now is growing. As a result, medical technologies are being examined more closely than ever, and device makers are asking their suppliers for ways to optimize the manufacturing process.
Molex has responded to those challenges by developing an expanded portfolio of solutions that support a growing range of medical electronics. With everything from microminiature interconnect systems, to shock-resistant and vibration-resistant components, to sealed cables, to capacitive switches, Molex can fully enable many different healthcare devices in critical diagnostic, therapeutic and patient monitoring applications.
To better serve our medical customers, we have expanded our reach through two key acquisitions: ProTek Medical Ltd., a contract engineering design and manufacturing firm, and certain assets of Soligie, Inc., a developer of flexible printed electronic solutions. We have also made several other acquisitions that have greatly expanded our medical business, including Polymicro Technologies™, Temp-Flex® Specialty Wire and Cable, Affinity Medical Technologies and FCT Electronics Group.