Growth Potential of China's Medical Equipment Industry

In terms of the number of customer inquiries and the level of interest generated, the leading global engineered access hardware manufacturer Southco’s participation in this year’s China International Medical Equipment Fair (CMEF) (April 18-21, 2009) can be considered a great success. The positive response Southco received at the event not only reaffirmed the continued importance of China’s medical sector to its 1.3 billion plus population, but more significantly, it also highlights China’s growing need for an industry expert like Southco to support its medical device industry’s impressive growth.
        
The Truth is in the Figures

Despite the present global economic downturn, more than 65,000 delegates attended this year’s CMEF in Shenzhen, China. The figure represents a 20 per cent increase in visitors when compared with last year. Even more significant is that this year’s event also saw a 50 per cent rise in overseas exhibitors when compared with 2008.
        
With over 180,000 hospitals and more than 3 million beds to sustain, China’s medical device industry is probably more significant than many realize. According to a 2008 report on China’s medical device market, for instance, the sector’s sales revenue and profit have increased by 30 per cent from 2004 to 2008 (1). In regional terms, China’s medical device sector produced over 34 per cent of the Asia-Pacific regional market’s value to reach US$13.7 billion in 2008 alone (2).
        
Globally, China is already the third largest medical device market in the world, after the United States and Japan. Recent market forecast estimates that by the next two to three years, China’s medical device sector will value at over US$23 billion, or a 69 per cent increase since 2006(3). Within the next five to seven years, China is likely to surpass Japan and become the second largest medical device market in the world(4).
        
So the question is, what does China’s medical device industry need to sustain its growth?
        
        “Medical devices are getting increasingly sophisticated. To be able to develop or build such sophisticated medical device products, you need a reliable and reputable manufacturing partner to help you overcome design challenges in specific areas. This is where global engineered access hardware solutions provider like Southco comes into play.”
        
Right Access Hardware Supplier the Key to Win

“There are many things China’s medical device manufacturers need to focus on to keep their competitive edge and growth momen tum. But in the end, it’s all about their ability to make the best products that best suit the needs of customers. In ‘best products’, I’m referring to devices that are safe, highly reliable, versatile, and best suits the principle requirements of China’s medical industry and their patients,” says Frazer Teo, general manager of Distribution and Diversified Markets SBU, Asia Pacific, Southco Asia Ltd. “Medical devices are getting increasingly sophisticated. To be able to develop or build such sophisticated medical device products, you need a reliable and reputable manufacturing partner to help you overcome design challenges in specific areas. This is where global engineered access hardware solutions provider like Southco comes into play.”
        
There are indeed many things that Chinese medical device manufacturers should look for in an ideal engineered access solutions provider – a wide range of products and solutions, global footprint, local support but more importantly, the ability to develop custom-designed parts that provide a source of product differentiation to these medical equipment manufacturers.
        
In this year’s CMEF event, for instance, Southco featured a broad portfolio of innovative products with a wide range of possible applications for different medical device products. In addition, Southco also showcased at its booth a wide range of position control products that provide effortless, precise adjustment and positioning of monitors and medical device arms throughout a range of motion. These position control devices enable a smooth and intuitive interaction with medical equipment by healthcare professionals, enabling them to focus better on providing patient care.
        
Southco’s Dzus® quarter-turn fastener, for example, is one of the most time-tested brands of the company, and a foremost recognizable name in the world of quick release fastening. Not only are they corrosion and vibration resistant, they are also highly reliable and light as well as easy to mount and de-mount when used on medical devices.
        
Despite the present economic situation, there are still abundant of opportunities in the medical industry and Southco is optimistic about the future of China’s and the Asia Pacific region’s medical equipment industry. With its global reach, customer support network, ability in custom-designed products and 4 manufacturing facilities in China and India, Southco is well-positioned as it continues to make progress and win market share in this growing industry.
        
        1. China Medical Sales and Medical Device Market Report, 2008.
        2. China Medical Sales and Medical Device Market Report, 2008.
        3. China: Accessing the Medical Device Market. Espicom Business Intelligence, July 2007
        4. China Medical Device Market Research and Forecast, 2008-2010
        
For additional information, visit: www. southco.com