Research highlights major untapped market for quality assurance and quality control industry

Citation

(2001), "Research highlights major untapped market for quality assurance and quality control industry", Measuring Business Excellence, Vol. 5 No. 4. https://doi.org/10.1108/mbe.2001.26705dab.002

Research highlights major untapped market for quality assurance and quality control industry

Research highlights major untapped market for quality assurance and quality control industry

The medical device market represents a huge market opportunity for the quality assurance and quality control industry, according to latest research. A, recent study by the organisers of the Medical Device Technology Exhibition 2002 suggests that 49 per cent of medical device manufacturers will spend 39 per cent more over the next year on quality assurance and quality control.

As part of an independent study on behalf of the organisers of the Medical Device Technology Exhibition 2002, 102 leading UK medical device manufacturers were questioned. The global market, worth an estimated US$121 billion is growing 6 per cent year-on-year and the UK companies questioned are major players, keen to grab a larger slice of it. On average they have a turnover of £330 million and expect sales to increase by 31 per cent during the next year.

Yet, over half of the respondents report that quality assurance and quality control companies do not recognise the potential that they offer. Consequently 89 per cent of the leading medical device manufacturers are looking to Europe for new suppliers and 76 per cent are turning to the USA.

This move overseas for suppliers could be a major revenue loss for the quality assurance and quality control industry. Of the medical device companies studied, 70 per cent are planning product launches and 54 per cent are planning to expand into new overseas markets during the next 12 months. As a result, 42 per cent see their R&D spend increasing by an average 20 per cent during this period. Over half report that finding new suppliers is a key priority if these plans are to be delivered and quality assurance and quality control is the third highest ranking area of supply.

Despite these facts, the study highlights an apathy among many quality assurance and quality control companies towards the medical device technology sector. For example, 54 per cent of those questioned report that quality assurance and quality control companies overlook the industry and fail to recognise the scale of the medical device market.

The study highlights just what that potential is. The world population is set to increase by almost 50 per cent by 2050 and the median age of this growing population was 26.1 in 1998 and is set to be 37.8 years by 2050. These factors combined with increased consumer expectations regarding healthcare, mean that the $121 billion global medical device market represents one of the fastest growing and most lucrative business sectors. Furthermore, UK medical device manufacturers are well placed to capture this growing market. Almost half of those questioned, who export on a global basis, rank the UK in first or second place on the global stage.

Yet the study, entitled, "The medical market – its needs and ambitions 2001", suggests that much of the business this growth could deliver to the quality assurance and quality control industry may well go abroad.

lain Mclean, sales director for the Medical Device Technology 2002 Exhibition and Conference highlights how this may already be happening:

Last year's show clearly demonstrated that UK medical device manufacturers were on the look out for new suppliers. Over 3,600 attended the event. They were quite clearly in the market to buy rather than browse. Yet over 40 per cent of exhibitors promoting their goods and services to them were from overseas. US and European quality assurance and quality control companies have recognised the potential and it is vital that their UK counterparts follow suit.

Medical Device Technology 2002 – the key event for the industry – is being held on 13-14 February, 2002 at the NEC, Birmingham, Hall 12. It is supported by the Association of British Healthcare Industries (ABHI) and the British Industry In-Vitro Diagnostics Association (BIVDA). For more information on the event or a copy of the study "The medical market – its needs and ambitions 2001" contact Ruth Joiner at Advantstar. Tel: 0208 987 0945 or e-mail: rijoiner@advanstar.com