Challenges in recent years have led medical device manufacturers to revisit their outsourcing strategies and engagement with strategic partners.
May 8, 2026
By: Sean Fenske
Editor-in-Chief
Supply chain struggles, geopolitical conflicts, and a worldwide pandemic put significant strain on medical device manufacturers’ (OEMs) abilities to develop and market their medtech solutions in a timely and cost-effective manner. Whether these challenges resulted in a critical component being unavailable or increased costs due to the region in which a manufacturing partner provided services, medtech organizations have taken notice. As a result, they are adjusting how they work with their development and production partners.
To get more insight into how this has impacted contract manufacturing organizations (CMOs), MPO reached out to a bevy of representatives to hear their perspective on this ongoing evolution. In addition, they addressed a variety of additional questions involving important factors beyond the interaction with OEMs. Among those who participated in this roundtable discussion were:
- Mike Anderson, vice president of strategy at ATL Technology
- Bryan Blessing, vice president of operations at Coastline International Inc.
- Niall Cullen, vice president, product marketing, at Integer
- Scott Drikakis, senior vice president of commercial at Quasar Medical
- John Faulkner, president of BMP Medical
- Tracy Gahagan, chief commercial officer at Precera Medical
- Jay Gurgens, director, commercial operations, at Vantedge Medical
- Brandon Hoffman, CEO of Nissha Medical Technologies and senior vice president of Nissha Co.
- Chris Johnson, vice president of global business development at Command Medical Products LLC
- Jim LaVersa, vice president, business development, at Harmac Medical Products Inc.
- Neil Muchin, commercial vice president of sales at Cordica Medical
- Nicole Ramus, executive vice president of global sales at VitalPath
- Bill Ruth, vice president of sales & marketing, North America, at Roechling Medical
- Greg Santorno, chief commercial officer at Vantedge Medical
- Ward Sokoloski, chief operations officer at Forj Medical
Sean Fenske: From your perspective, what is the outsourcing situation in medtech? Growing, shrinking, or about the same?
Mike Anderson: The medtech outsourcing situation is very positive and growing. This beneficial environment comes with ever-increasing requirements on CDMOs [contract development and manufacturing organization]. OEMs [original equipment manufacturers] are looking to the CDMOs to do more; modern CDMOs must consider complete lifecycle responsibilities. For most, this requirement will cause a strain on the organization. For ATL, we have supported the complete product lifecycle for the last 30 years, as evidenced by our more than 200 product launches and the maintenance and management of over 90 technical files.
Bryan Blessing: More than anything, it appears OEMs have been hesitant to make decisions on moving manufacturing, which has been highly attributed to the changing tariff landscape. There has been hesitation to invest in a manufacturing transfer due to the risk of the tariff landscape changing. This has put programs on hold over the past year, but it appears that recently OEMs are moving forward with plans to outsource.
Niall Cullen: Medtech outsourcing continues to play a critical role in helping OEMs bring products to market and ensure patients receive the therapies they need. But the nature of outsourcing has fundamentally changed. It is no longer primarily about adding capacity or reducing cost; OEMs are engaging partners earlier in the development cycle for design and manufacturing expertise, informing design tradeoffs, and derisking product ramps.
It is reshaping relationships, requiring deeper collaboration, stronger integration, and shared accountability. Outsourcing today is not only about delivering volume; it is about helping OEMs anticipate risk, engineer flexibility, and make the right decisions early, when they matter most.
Scott Drikakis: According to Precedence Research, contract manufacturing alone reached approximately $100 billion in 2025, with a near-term projected CAGR of 10% to 11%. These results can vary depending on the individual CDMO and their business model regarding finished device manufacturing versus component-level outsourcing.
John Faulkner: From our perspective, I think the market in medtech is growing.
Tracy Gahagan: Outsourcing is growing and evolving. OEMs are seeking partners who can move fast, hit tight tolerances, and scale programs as they ramp. As devices get more complex, they’d rather work with trusted manufacturing partners who already have expertise, equipment, and teams in place.
Brandon Hoffman: From our perspective, outsourcing in medtech continues to grow. After post-COVID supply chain disruptions, the industry returned to steady year-over-year growth, with North American procedure volumes normalizing by late 2024. As demand rebounds, OEMs are increasingly relying on external partners to scale quickly and manage risk.
Outsourcing is also accelerating because next-generation devices combine multiple technologies, such as micro-molding, electronics, sensors, and drug delivery, making it impractical for OEMs to maintain all capabilities in-house. For example, in diabetes and drug-delivery applications, OEMs often outsource precision components like micro-molded cannulas to specialized CDMOs rather than invest in highly specialized equipment and expertise internally.
Finally, capital allocation has shifted toward innovation over manufacturing expansion. Many OEMs are prioritizing R&D and speed to market, using outsourcing partners to provide flexible, validated capacity without the burden of new facilities. As a result, outsourcing has become a strategic enabler of growth, not just a cost-control measure.
Chris Johnson: Outsourcing in medtech is continuing to grow. OEMs are increasingly relying on specialized partners to gain access to technical expertise, manage cost pressures, and improve speed to market. The strategic focus on core competencies, combined with regulatory and supply chain complexity, is further accelerating this trend.
Jim LaVersa: Outsourcing in medtech is clearly growing. Across our existing customer base, we’re seeing rising demand spanning a diverse range of medical sectors. New customers and prospects are increasingly seeking partners who can accelerate time-to-market and bring specialized manufacturing and in-house automation expertise to the table. Harmac has deliberately aligned its capabilities and resources to meet these expectations.
Neil Muchin: Outsourcing is growing but is also being redefined on a global scale. OEMs are moving away from fragmented supplier networks and toward fewer, more capable partners who can take ownership across the product lifecycle. The reality is that complexity has outpaced traditional outsourcing models. If a CMO cannot effectively support design, development, and scalable manufacturing in a coordinated way, it becomes a bottleneck.
Nicole Ramus: Outsourcing in medtech is clearly growing. OEMs are increasingly relying on specialized partners to accelerate development timelines, access technical expertise, and maintain cost efficiency across the product lifecycle. The industry is also shifting toward deeper collaboration with partners who can support not just manufacturing, but design, development, and lifecycle management.
At the same time, outsourcing is no longer purely about capacity; it’s about strategic capability. OEMs want partners that can help mitigate risk, accelerate innovation, and guide products from concept through commercialization while maintaining quality and regulatory rigor.
Bill Ruth: From my perspective, outsourcing in the medtech industry continues to grow and evolve. OEMs are increasingly looking for partners that bring not only manufacturing capacity but also engineering expertise and regulatory understanding. As medical devices become more complex, OEMs recognize the value of working with specialized partners who can support them throughout the product lifecycle. We see this shift as a move toward deeper technical collaboration rather than transactional outsourcing.
Ward Sokoloski: Definitely growing. Innovation continues at all levels of the industry, from large multi-national OEMs to transformational startups.
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Source: https://www.mpo-mag.com/renewed-relationships-for-full-service-medtech-outsourcing/