6 tooling machines, 1/2 a million dollar of investment

FREU_MEDICAL_Logo_Sinus_CMYK

Freudenberg is one name that strikes our mind when it comes to strategic medical device contract manufacturer. Company has been on rampant growth rate and has been channelizing quiet a spend on growth activities ranging from expansion to new technologies.

Company recently acquired 6 new machines to increase its offerings in medical device contract manufacturing space. These CNC machines have been acquired with a goal to reduce the repair lead times and increase usage of customer molds to optimal levels.

Medical device outsourcing needs are on rise and according research reports it is poised to touch USD 90.5 billion by 2020. Company competes with likes of

– Flextronics
– Jabil Circuit
– Benchmark Electronics
– Greatbatch
– The Tech Group (West Pharmaceutical Services)
– Tecomet (Symmetry Medical)
– Nortech Systems
– TE Connectivity (Creganna Medical)
– Forefront Medical Technology
– Vention Medical in medical device contract manufacturing segment.

Strength & Opportunity Analysis : Freundenberg

  • Company has been making significant investments on technologies and capacity additions.
  • It has expanded its operations in APAC geographies such as China giving at an edge for competitive price offerings to medical device OEMs.
  • Its unique offerings of rapid tooling and prototyping gives it good push on highly competitive contract manufacturing sector.

Technical and Operational Strengths: Company Score:∗∗∗∗∗ <4.75>

Technical (Absolute) : 5/5

  • Design : Yes
  • Prototyping or Development : Yes
  • Manufacturing : Yes
  • Niche { Premium or Niche Segments (Invasive, connected and robotics) : Yes
  • End to End  or Consolidated Service Offerings :Yes

Number of yes determines rating of technical parameter

Operational (Relative) : 4.5

  • Years of experience – 5 (Bench-marked with peers)
  • Number of employees – 5 (Bench-marked with peers)
  • Geographical foot print- 5 (Considered global presence i.e.Developed and Emerging Country Penetration)
  • Investments on new technologies – 3 ( Evaluated investment on novel industry themes such as 3D Printing, Connected Healthcare, Robotics or Others)

Note: Technical positioning is done based on absolute Key performance indicators while Operational positioning is done based on peer analysis.

Main Competitors

  • Vention Medical

  • Tegra Medical

  • MedPlast Inc.

  • Confluent Medical Technologies

  • Posey Company

  • SMC Ltd

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