Alira Health and MassMEDIC collaborated on the report.
Alira Health, a business management consulting firm that focuses on the healthcare industry, released its 2023 report on the state of the US medical device contract development and manufacturing organization industry. The report, completed in collaboration MassMEDIC, examines trends of the medical device outsourcing industry, how it’s reacting to recent world events (such as the COVID-19 pandemic), and where it appears to be heading.
Not surprisingly, the pandemic had a significant impact on the industry starting back in 2020. The pandemic sparked a global supply chain crisis, which forced the industry to react. According to the report, the contract development and manufacturing organizations (CDMOs) still showed growth during this period.
In 2022, the CDMO output grew by an estimated 9.4%, compared to the medical device industry’s overall growth of 4%. It is believed that CDMOs will continue to outperform the medical device industry in coming years. While the industry as a whole did show growth, it underperformed expectations, likely due to a global recession and a decrease in product demand.
Supply chain issues continued to impact the industry, resulting in a shortage of raw materials and components. Along with this, a highly competitive labor market also provided challenges for the industry.
The 2023 forecast once again shows that the industry should see growth over the year, this time potentially amounting to over 6% from 2022. CDMOs are expected to grow by just over 13% in the coming year.
Alira and MassMedic compiled their findings by conducting market analysis, reviewing a census of the global CDMO market, surveying global leaders in the industry, and studying merger and acquisition within the industry.