Growth Potential of China's Medical Equipment Industry

In terms of the number of customer inqui瑀ies and the level of interest generated, the leading global engineered access hardware manufacturer Southco's participation in this year's China International Medical Equip琺ent Fair (CMEF) (April 18-21, 2009) can be considered a great success. The positive response Southco received at the event not only reaffirmed the continued importance of China's medical sector to its 1.3 billion plus population, but more significantly, it also highlights China's growing need for an industry expert like Southco to support its medical device industry's impressive growth. The Truth is in the Figures Despite the present global economic downturn, more than 65,000 delegates at瑃ended this year's CMEF in Shenzhen, China. The figure represents a 20 per cent increase in visitors when compared with last year. Even more significant is that this year's event also saw a 50 per cent rise in overseas exhibitors when compared with 2008. With over 180,000 hospitals and more than 3 million beds to sustain, China's medi琧al device industry is probably more signifi琧ant than many realize. According to a 2008 report on China's medical device market, for instance, the sector's sales revenue and profit have increased by 30 per cent from 2004 to 2008 (1). In regional terms, China's medical device sector produced over 34 per cent of the Asia-Pacific regional market's value to reach US$13.7 billion in 2008 alone (2). Globally, China is already the third largest medical device market in the world, after the United States and Japan. Recent market forecast estimates that by the next two to three years, China's medical device sector will value at over US$23 billion, or a 69 per cent increase since 2006(3). Within the next five to seven years, China is likely to surpass Japan and become the second largest medical device market in the world(4). So the question is, what does China's medical device industry need to sustain its growth? "Medical devices are getting increasingly sophisticated. To be able to develop or build such sophisticated medical device products, you need a reliable and reputable manufacturing partner to help you overcome design challenges in specific areas. This is where global engineered access hardware solutions provider like Southco comes into play." Right Access Hardware Supplier the Key to Win "There are many things China's medical device manufacturers need to focus on to keep their competitive edge and growth momentum. But in the end, it's all about their abil琲ty to make the best products that best suit the needs of customers. In 'best products', I'm referring to devices that are safe, highly reliable, versatile, and best suits the principle require琺ents of China's medical industry and their patients," says Frazer Teo, general manager of Distribution and Diversified Markets SBU, Asia Pacific, Southco Asia Ltd. "Medical devices are getting increasingly sophisticated. To be able to develop or build such sophisticated medical device products, you need a reliable and reputable manufacturing partner to help you overcome design challenges in specific areas. This is where global engineered access hardware solutions provider like Southco comes into play." There are indeed many things that Chinese medical device manufacturers should look for in an ideal engineered access solu瑃ions provider ?a wide range of products and solutions, global footprint, local support but more importantly, the ability to develop custom-designed parts that provide a source of product differentiation to these medical equipment manufacturers. In this year's CMEF event, for in stance, Southco featured a broad portfolio of innovative products with a wide range of possible applications for different medical device products. In addition, Southco also showcased at its booth a wide range of posi瑃ion control products that provide effortless, precise adjustment and positioning of monitors and medical device arms throughout a raNike Special Forces Air Force 1 Boots