The evidence seems to indicate that, for most medical device and pharmaceutical manufacturers, China represents far more of an opportunity than a threat. But the opportunity is more about manufacturing in China to sell locally—not exporting back to the United States or Europe.
With all the concerns here in the U.S. for a secure supply chain, moving your own facility thousands of miles away is not conducive to secure operations. In fact, some manufacturers have reported moving back to Mexico where a "putting out the fires" trip is far less time consuming and less expensive.
One of our contacts in Asia told us most U.S. food, beverage, pharmaceutical and medical device plants are being built to satisfy local demands. And stricter U.S. and European regulations make it harder to export healthcare products manufactured in China.
In a recent survey of 207 readers of Healthcare Packaging, 26% currently have manufacturing operations in China, but only 8% plan to move there in the next three years.
U.S. manufacturers, and their packaging suppliers, need to look to China for reasonable and affordable strategies targeted at capturing this huge population—and its growing affluence.
--By Jim Chrzan, Publisher
