How do you stay competitive with rising manufacturing costs squeezing your margins?

Managing profit margins has become a critical challenge as you face increasing pressures from rising production costs. The costs associated with localization, distribution and the training and education of healthcare professionals continue to climb, especially for MedTech devices that require ongoing service and maintenance. These expenses, necessary to ensure the proper functioning and global adoption of innovative devices, contribute significantly to your overall cost structure, making it more challenging to maintain profitability without compromising quality or innovation.

Moreover, the rapid pace of technological advancement, while offering new opportunities and product innovations, also drives up costs. Connected and highly sophisticated devices require significant investment in research, development and compliance with stringent regulatory standards. The current economic environment, characterized by inflation and fluctuating supply chain dynamics, further exacerbates these challenges. To navigate these complexities and avoid the margin squeeze trap, manufacturers need to adopt smarter pricing strategies that reflect the true value of their innovations while accounting for rising costs.

Let’s look at a scenario one global medical device manufacturer faced