Medical devices

Operation profile

Medical device manufacturing represents one component of the broader medical equipment, technology, and supplies industry. Medical device manufacturers produce a wide range of medium- and high-technology products, such as prosthetics, artificial joints, implants, stents, and braces.

The representative operation modeled is a manufacturer of mechanical medical devices, such as prosthetics. As detailed in the following table, this operation is characterized by:

  • Moderate facility and equipment requirements
  • A workforce strongly weighted toward professional/technical staff and skilled operators
  • Relatively low energy requirements
  • Modest in-house R&D activities.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Medical devices

Operation: Medical device manufacturing

Facilities requirements
   Leased industrial site - acres (16,187 m2)
4
   Size of factory - ft2 (6,503 m2)
70,000

Other initial investment requirements
   Machinery and equipment - US $'000
$14,500
   Office equipment - US $'000
$200
   R&D equipment - US $'000
$300
   Inventory - US $'000
$3,400
   Equity financing - % of project costs
55%

Workforce
   Management
6
   Sales and administration
15
   Production/non-dedicated product development
      - Professional, technical
32
      - Operators
34
      - Unskilled laborers
10
   Other
3
 
Total employees
100

Energy requirements
   Electricity: monthly consumption demand - kWh
140,000
   Gas: monthly consumption - CCF (6,799 m3)
2,400

Other annual operating characteristics
   Sales at full production - US $'000
$26,000
   Materials and other direct costs - % of sales
30%
   Other operating costs - % of sales
5%
   Investment in tax-eligible R&D - % of sales
3.3%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Medical devices
Operation: Medical device manufacturing
North America – lowest cost cities
Country and CityIndex & Rank1
CAMoncton, NB85.13
 Fredericton, NB85.14
 Charlottetown, PE85.55
 Winnipeg, MB86.06
 St. John's, NL86.17
MXMonterrey, NL78.01
 Mexico City, DF79.52
USShreveport, LA93.234
 Baton Rouge, LA94.036
 Montgomery, AL94.137
 Savannah, GA94.339
 Youngstown, OH94.640
 Gulfport-Biloxi, MS94.641
 Lexington, KY94.642
 Omaha, NE94.743
 Little Rock, AR94.744
 Nashville, TN94.745
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide89.825
 Brisbane91.430
 Melbourne89.926
 Sydney91.028
FRMarseille90.327
 Paris91.229
GEBerlin92.731
 Frankfurt93.235
ITMilan89.223
 Rome89.624
JPOsaka93.032
 Tokyo93.133
NLAmsterdam88.822
 Rotterdam88.621
UKLondon94.138
 Manchester87.013
1  Rank among 111 featured cities.

 
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