Is Your Logistics Setup Ready for the Medical Manufacturing Boom?

The UK is a manufacturing hub, and for hundreds of years, Britons have been innovating and producing exports that were shipped worldwide. The next boom that's expected, is the medical device manufacturing sector. After a shutdown period in 2020, demand has been rising and is at a boiling point after reserves have been all but depleted.

British medical device manufacturers should however be diversifying their market to take advantage of the worldwide demand that’s calling for their business. They should be seeking logistics partners with ready-made networks in place to help them take advantage of the leap to international trade in the up-and-coming markets like the MENA region, a growing market worth $9.5 billion USD in 2020. It’s primed to receive British made MedTech in 2021.

Non-Essential Procedure Shutdown

During the pandemic, the UK’s NHS among other healthcare bodies were transformed into very much the last line of defence against the virus. Elective and non-essential procedures were halted; to leave beds and professionals available for those suffering from Covid-19. The medical device industry was one of the few to suffer from this shift in focus, early analysis had the global market down by 2-4% in 2020.

This does not however account for the ventilator market which has seen unprecedented cooperation from the industry. For example, MIT developed an open-source ventilator which costs the sum of $100 to produce, in comparison to the $30,000 alternative currently in widespread use across the USA. Uptake and necessity for these specialist medical devices have buffered the falling market, certain manufacturers have been propped up when they have pivoted to create the lifesaving MedTech. Usage of these devices, and UK hospitals re-opening elective procedures, will increase demand for MedTech manufacturing products such as pacemakers and joint replacement technology, leading to expectations that the market will likely recover from 2021 at a rate of over 6%, rising higher than $600 billion USD by 2023.

Targeting USA & Asia

Brexit has put up serious roadblocks for the manufacturing sector, with tariffs and potential no trade deals being touted as the next step towards the separation of the UK from the EU. MedTech is one of the biggest markets in Europe, the UK MedTech market is the 3^rd largest in Europe and the 6^th largest in the world. British MedTech manufacturing has an attractive proposition to offer other regions of the world; regions that are open to striking new trade deals with the UK in the face of Brexit.

The USA and Asian MedTech markets are worth $169 billion and $88 billion respectively. This constitutes over a half of the global market. Studies have shown that compared to Europe, the USA and Asian markets are growing significantly fast, this is being attributed to a myriad of factors. The USA for example is showing signs of exemplary R&D investment, which has caused the market to swell, whereas the Asia Pacific region has a lower pool of patents which makes it an excellent trading floor for MedTech exports.

Your MENA Guide

The MENA region is one that could be a profitable trade ally for medical device manufacturers for years to come. The Middle Eastern medical device market was reportedly worth $19.6 billion USD in 2016, and by continuing with a GAGR of over 5.5% would make it upwards to $24.2 billion USD in 2020. Growth in this region is down to the nature of early adoption of technological advancement in the market, and innovations into increased efficiency and accuracy are expected throughout the coming years in the MENA region. The neurological device market is a highlight and is expected to grow at the highest rate in the coming years.

Aramex has a strong network in MENA. Our extensive expertise in the region places us perfectly to facilitate trade between the rapidly growing trade centre and the UK.

Our vast understanding of the local culture and customs gives us extraordinary insight into logistic processes and border passing between the different countries located in the dynamic, expansive region.

Not only are we well placed for your global transportation needs, but our dedicated team work tirelessly to ensure your medical device supply chain works seamlessly as your business traverses new ground in search of prosper.

With Brexit and the pandemic casting uncertain shadows across Europe, businesses should begin to look further afield, to the far corners of the world where demand is rising, and opportunities are presenting themselves. Partnerships are there to be forged, seize the moment and export.

We can be your expert logistics partner covering your business across the globe! Talk to our team.