Mexico to Integrate SMEs into Medical Device Supply Chains

Mexico's Ministry of Economy (SE) will host the inaugural "SMEs in the Value Chains: High-Tech Medical Devices" business networking event on Aug. 13-14, 2024. The event aims to integrate SMEs into the global supply chains of high-tech medical device companies. This initiative is part of a broader industrial policy designed to promote economic growth and increase local content in manufacturing.

The event is a product of the US-Mexico CEO Dialogue, which seeks to enhance the participation of Mexican micro, small, and medium-sized enterprises (Mipymes) in value chains to attract greater investment into the country, as reported by the SE. The ministry is focusing on connecting these smaller companies with global leaders in the medical device sector, providing them with opportunities to expand their market reach and build long-term partnerships.

The SE's industrial policy is geared toward promoting equitable growth and increasing the national content of Mexican products. Facilitating direct business engagements between local suppliers and international industry leaders is crucial for achieving these goals, says  Othón Valverde, Mexico’s Deputy Minister ofIndustry and Commerce.

The event will feature major multinational corporations such as GE HealthCare, Johnson & Johnson, Medtronic, Baxter, Intuitive Surgical, Thermo Fisher Scientific, Sonova, and Becton Dickinson. These companies are seeking to establish relationships with Mexican suppliers specializing in various high-precision manufacturing areas. These areas include mechanical assembly, metal sheet fabrication, machined assemblies, casting, machining, plastic molding, metal extrusions, and electronic components.

The structure of the event allows participating Mipymes to engage in face-to-face meetings with these global corporations, offering them the opportunity to showcase their capabilities and discuss potential collaborations. In addition to business meetings, the event will provide workshops and direct advisory services to help Mipymes navigate regulatory requirements and access development bank financing.

In 2023, Mexico's medical device market was valued at about US$15.6 billion. It is anticipated to expand at a compound annual growth rate (CAGR) of 8.3% in local currency and 6.8% in US dollars from 2022 to 2027. By 2027, the market is expected to reach approximately $19.7 billion, according to Co-Production International.

However, the Mexican medical devices sector also faces several challenges. The primary challenge is the distinct nature of innovation in medical devices compared to pharmaceuticals, argues the Mexican Association of Medical Devices (AMID). This distinction poses complexities in regulation and commercialization, says Ana Riquelme, Executive Director, AMID. Additionally, access remains a challenge. Despite being the world's leading producer of medical devices, Mexico ranks relatively low in per capita consumption, explains Riquelme.