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Case Study: Phase2 Medical Device Manufacturer - A Journey of Success and Growth

Phase2 Medical Manufacturing in tecate


Contract Manufacturer Expands Production Nearshore with 30,000SF Facility.

Customers began telling Phase 2 that the availability of low-cost labor outside the United States would be a criteria for vendor sourcing going forward. Phase 2 ruled out China due to rising labor costs, rising shipping costs and being too far away to manage. Costa Rica was also ruled out, largely because of the 18 days’ time on the water to the United States. With North America generating the most revenue for the medical device industry in 2013, and the US representing 38% of the global sector, manufacturers have lost their infatuation with offshore manufacturing.


A Cost-Effective, Well-Established, and Mature Industry

Just south of San Diego, California, Tijuana has an over 30-year history in medical device manufacturing and is highly regarded as a major global hub for medical device manufacturing. Boasting a 65,000 person-strong labor pool directly serving the 78 companies operating in the region, the medical device industry in Baja California represents the largest concentration of companies and of job creation in Mexico. Mexico is also the fifth largest exporter of medical products in the world, with 50% of these exports coming out of baja california


How Nearshoring Creates New Supply Chain Opportunities

With global medical device outsourcing forecasted to reach more than $50 billion by 2020, there are no shortages of new markets and new customers to tap into. Strategic positioning and location are now just as crucial as your marketing and sales force. With an average of 15% production cost savings for OEMS who outsource to CMOs, Phase 2’s expansion in Tijuana has placed them at the center of the industry. With the trending best practice of the “One Stop Shop,” medical device OEMs are now seeking contract manufacturers with a global footprint and an increased breadth of services and capabilities.


Working with CPI is the Most Cost-Effective Way to Expand

Working with an administrative and shelter service firm is the new best practice for expanding manufacturing operations outside of the United States. Manufacturers gain a strategic and cost effective advantage working with companies like CPI who handle the entire process of exploration, analysis and complete set-up.

Hiring in-house site or expansion teams just isn’t cost effective anymore, especially including the added cost and time spent navigating and complying with a foreign country’s business regulatory requirements. CPI offers manufacturers a unique and innate advantage over an in-house team: the local knowledge, expertise and established network of partners.

About Phase2

Medical Device Contract Manufacturing Since 1995

phase2 150Phase2 Medical Manufacturing is a medical device contract manufacturer of single-use, disposable medical devices offering turnkey medical manufacturing for products that require product development, cleanroom injection molding, cleanroom manufacturing, medical assembly, testing, medical packaging, shipping, and sterilization services. FDA registered and certified to ISO 13485 with ISO Class 8 clean rooms at global facilities at both New Hampshire and Tijuana facilities.

Medical Device Manufacturer Phase 2 opens Tijuana Plant Contract Manufacturer Expands Production Nearshore with New 30,000SF Facility


Contract Manufacturer Expands Production Nearshore with 30,000SF Facility. A conversation featuring: Adam Prime, CEO Ben Prime, Technical Manager OUS.

Ready To Establish Your Manufacturing Operation In Mexico?

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Whether you have questions about the process or are ready to get started, we're here to help.
Contact us today at (855)480.0837 to learn how we can provide you with expert support every step of the way, from exploration to set up and beyond.

With our extensive experience providing Shelter Services in Mexico, we'll make sure your manufacturing operation in Mexico is a success. Don't wait - reach out to us today and let's get started!

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Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
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Ph: 855.480.0837
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