In our globalized world, relocating the production of medical technology to the Far East seems attractive at first glance: large production capacities and favorable prices.
For many years, the Offshoring It also worked excellently, but recently we have seen increasing difficulties due to political and regulatory requirements, as well as unforeseen events such as the Corona pandemic.
However, especially in medical technology, factors such as quality, regulatory safety and reliability are non-negotiable.
Therefore, we are currently observing a return to domestic production in medical technology – the strengths of ‚Made in Germany‘ are back in focus.
1. Common problems in medical technology manufacturing from the Far East
- Quality fluctuations: Cheap production is not necessarily cost-efficient. Defective products, complaints, or recalls due to quality fluctuations can even increase costs in the long run.
- Unsafe supply chains: Long transport routes, customs risks and geopolitical tensions can lead to massive delays.
- Regulatory pitfalls: Manufacturing in the Far East often means rework because EU-MDR and ISO standards are not consistently implemented.
- Knowledge outflow: Production abroad carries the risk of imitations and a lack of intellectual property protection.
- Communication barriers: Language barriers, time differences, and intercultural misunderstandings further complicate cooperation.
2. The advantages of manufacturing in Germany
- Quality & Precision: German manufacturing operates to the highest standards – with controlled processes and stable quality.
- Regulatory safety: Production under EU-MDR and ISO 13485 ensures legal compliance and market access security.
- Reliable supply chains: Short distances mean adherence to deadlines and less dependence on geopolitical risks.
- Customer proximity & flexibility: Direct communication with development and manufacturing enables rapid adjustments.
- Protection of intellectual property: German standards in IP protection prevent unwanted imitation.
- Sustainability: Less transport, better environmental and occupational safety standards.
3. Conclusion: Investment instead of cost factor
In recent decades, outsourcing production to countries like China to reduce costs was a rational and economically sound decision. However, global events of the past five years have led to a rethink within the industry and highlighted the disadvantages that come with globalization. These include raw material shortages, export restrictions, trade conflicts caused by tariffs, the COVID-19 pandemic, and changes in political relations in manufacturing countries.
The lessons learned clearly show the trend towards Reshoring – meaning the deliberate return of production to Germany. While China remains an important sales and production market, there is a clear desire to, To bring critical supply chains back to Germany or Europe.
- Minimize supply chain risks: Short, transparent supply chains increase security of supply.
- Security of supply for critical components: Especially in medical technology, the availability and predictability of components are crucial.
- Technological and economic advantage: In-house production secures know-how, protects intellectual property and promotes domestic innovation.
- Promoting research and value creation in Germany: Every locally produced component strengthens the location, creates jobs and builds expertise.
- Political and economic independence: Less dependence on geopolitically unstable regions increases strategic security.
Those who rely on German manufacturing save themselves detours, rework and risks – and gain in return. Quality, trust and long-term success. "Made in Germany" is therefore not an expensive label in medical technology, but a Strategic decision for security, reliability and competitiveness.
4. "When Germany, when the Far East?"„
Naturally, the production of medical technology always involves a trade-off between quality, cost, and quantity. Therefore, outsourcing production abroad remains an attractive option when it is economically viable or driven by demand. But when should this outsourcing occur?
For prototypes and small to medium-sized production runs, manufacturing in Germany is the best choice – fast, reliable, and flexible, especially when development is still ongoing. For very large production volumes, relocating to the Far East might be more sensible. However, those who prioritize quality and market access will be better off with 'Made in Germany' in the long run.
Prototypes & small series
... clearly belong in Germany.
- High flexibility for changes during development.
- Direct exchange with developers, engineers and production.
- Shorter delivery times – important for testing, approvals and pilot applications.
- Regulatory security from the outset.
Medium series
... They can also be manufactured well in Germany, as quality, precision and reliability of delivery are combined.
- Often more efficient because there are no long transport routes and the risk of rework is low.
- The overall costs are often lower than supposedly "cheap" Far East productions due to less waste and faster adjustments.
Very large quantities
... They can be of interest in the Far East if:
- the product already mature and stable in design is,
- the regulatory requirements are clearly defined and implemented in the manufacturing process,
- and the company is ready, Risks in logistics, IP protection and quality control to manage.
Do you have experience in medical technology production as a developer or client and would like to share your key insights? Then please contact us! And if you are looking for a partner for contract manufacturing in the medical technology sector, please get in touch as well!