medical products cluster of baja california€¦ · anesthesiology cardiovascular chem.clinic and...

Medical Products Cluster ofBaja California

Medical Products Cluster ofBaja California

www.producen.orgwww.producen.org

AprilApril 20052005

To impulse the developmentand generation of value insidethe group of medical productmanufacture, with the aim of increase the economic spill and the level of industrial competitiveness.

General Goal:

Definition: “Medical Device”In any instrument, device,

implement, machine, implant, reactive or

calibrator “in vitro”, software, material or

another manufactured item, similar or related to

be used alone and/or in combination by the human

being for one or more of the following specified

propouses:

•Research, replacement, modification, or support to the anatomy or some physiologic process.

• Diagnosis, prevention, monitoring, Diagnóstico, prevención, monitoreo, treatment or relief of some illness or injury.

•Support or maintenance of life.

• Control of Conception.

•Disinfection of medical products.

•The information supply for medical porpouses of examinations in vitro of specimens of the human being and wich don’t represent with their main application inside or over the human body by pharmaceutical, immunological, or methabolic means, but wichcould be supported by this means.

Definition of the World Health OrganizationDefinition of the World Health OrganizationDefinition of the World Health Organization

••IsIs estimatedestimated thatthat exitsexits, , aproximatelyaproximately 18,00018,000manufacturingmanufacturing companiescompanies ofof medical medical productsproductsaroundaround thethe worldworld, , wichwich employemploy more more thanthan740,000740,000 peoplepeople..

•• A A CConsumptiononsumption MarketMarket fromfrom aboutabout $230 $230 billionesbilliones ofof dollarsdollars annuallyannually..

••ExceptingExcepting pharmaceuticalpharmaceutical industryindustry, , isis thethesector sector withwith more more participationparticipation in in I&DI&D (11.4% (11.4% ofofitsits sales)sales)..

Medical Products Global Industry

* Medical Device Link* Medical Device Link* Medical Device Link

35

25

13

72

-1020304050607080

EUA CEE Japón Resto delMundo

$ Bi

llion

s of

Dol

lars

Value of the International Markets in Medical Industry, year 2000

Global Market in 2000 Global Market in 2000 > $145 > $145 BillBillions of Dollarsions of Dollars; ; estimated toestimated to 20042004 of of $ 230 $ 230 Billions of DollarsBillions of Dollars

* AdvaMed 2004 report.* * AdvaMedAdvaMed 2004 report.2004 report.

• USA remains as the lider country producingmedical and diagnosis devices with anestimated production of $77 billions ofdollars in 2002, and exports for $20.3 billions of dollars.

• The medical products industry in USA employs about 350,000 people in about8,500 companies, contemplatingdistributors, suppliers, and others.

• USA remains as the lider country producingmedical and diagnosis devices with anestimated production of $77 billions ofdollars in 2002, and exports for $20.3 billions of dollars.

• The medical products industry in USA employs about 350,000 people in about8,500 companies, contemplatingdistributors, suppliers, and others.

Medical Products Industry in USA

* Medical Device Link / AdvaMed 2004 report* * Medical Medical DeviceDevice Link / Link / AdvaMedAdvaMed 2004 2004 reportreport

* Empresas relevantes -Base de datos Dunn & Bradstreet - USA* * EmpresasEmpresas relevantesrelevantes --Base de Base de datosdatos Dunn & Bradstreet Dunn & Bradstreet -- USAUSA

StateState # # PlantsPlantsCA 555MA 228NY 207

PA 175

NJ 171

MN 165IL 162

FL 150

OH 121

TX 119CT 97

MI 91IN 70NC 66

WI 66

555555

228228207207

175175

171171

165165

162162

150150

121121

119119

979791917070

6666

6666

Industry Macro localization in USA15 main states (D&B)

Size of Medical products and diagnosis market in USA

•Historic Data U.S. Department of Commerce 2001 Census; •forecast to 2004 ProduCen••Historic Data U.S. Department of Commerce 2001 Census; Historic Data U.S. Department of Commerce 2001 Census; ••forecast to 2004 forecast to 2004 ProduCenProduCen

57.7

62.2

66.7

7573.771.4

76.3 77.6 78.9 80.2 81.582.8

40455055606570758085

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

$ Bi

llone

s de

Dlls

TACC = 4.5% (Tasa Anual Compuesta de Crecimiento )

AñoAño

0

5

10

15

20

25

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

$ B

illon

es d

e D

lls.

0

5

10

15

20

25

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

$ B

illon

es d

e D

lls.

Total Annual Exports of medical industry in USA

* AdvaMed reporte 2004, en base a U.S. International Trade Commission* * AdvaMedAdvaMed reportereporte 2004, en base a U.S. International Trade Commission2004, en base a U.S. International Trade Commission

2002 2003$ Billones Dlls $ Billones Dlls

$20.30 $22.50

$18.30 $22.00

U.S. Superavit $3.30 $0.50

EU Total $2.20 $0.73Francia $0.65 $0.53Alemania -$0.22 -$0.47Inglaterra $0.74 $0.56Canada $1.60 $1.30

México -$1.04 -$1.40Japón $1.30 $1.20Asia (excl. Japón) -$1.40 -$1.40

Estadisticas comerciales de la industria médica

EUA Exportaciones

EUA Importaciones

`̀

565656 141414

333

262626

222222

8 in Nogales8 in Nogales1 in San Luis R. C.1 in San Luis R. C.

18 en 18 en CdCd. Juárez. Juárez3 en Chihuahua3 en Chihuahua

21 in D. F.21 in D. F.5 in 5 in EdoEdo. De México. De México

Main Concentrationsof plants in the country

* Sources : SIEM, Consejo de Promoción Ecomómica de Sonora, Secretaría de Desarrollo Económico De Chihuahua, ProduCen* Sources : SIEM, * Sources : SIEM, ConsejoConsejo de de PromociónPromoción EcomómicaEcomómica de Sonora, de Sonora, Secretaría de Desarrollo Económico De Chihuahua, Secretaría de Desarrollo Económico De Chihuahua, ProduCenProduCen

A A dynamicdynamic industryindustry thatthat participatesparticipates in in thethe statestate economyeconomy withwith::

••56 56 productionproduction plantsplants••More More thanthan 27,500 27,500 directsdirects employsemploys••RelevantRelevant operationsoperations in in fourfour citiescities ofof thethe entityentity

Medical Products Cluster of Baja California

•Catheters•Pipettes•Valves•Artificial Respirators •Nebulizers•Connectors•Orthopedic Devices •Endotracheal Tubes

•Latex Glooves•Steel Dental Parts•Anesthesia Circuits.•Surgical and diagnosis Equipment•Medications supply systems•Sutures without needle•Ophthalmic glasses•Tubes for hemodialysis

FabricationFabrication ofof productsproducts suchsuch as:as:

* ProduCen - investigación directa 2004 * * ProduCenProduCen -- investigación directainvestigación directa 2004 2004

Presence of recognized Brands

* ProduCen – Direct Research 2004 * * ProduCenProduCen –– DirectDirect ResearchResearch 2004 2004

Plants

SizeSize

0

5

10

15

20

25

30

MICRO PEQUEÑA MEDIANA GRANDE

PlantsPlants by by citycity

0

5

10

15

20

25

30

35

ENSENADA MEXICALI TECATE TIJUANA0

5

10

15

20

25

30

35

ENSENADA MEXICALI TECATE TIJUANA

ENSENADA MEXICALI TECATE TIJUANA TOTAL

MICRO 0 1 0 0 1PEQUEÑA 1 1 4 4 10MEDIANA 0 6 0 13 19GRANDE 3 4 2 17 26

TOTAL 4 12 6 34 56

* Size of companies is taking in accordance with an official classification of the “Ley para el desarrollo de la competitividad de la MPyME” publicated in DOF with date of december 30, 2002.

* Size of companies is taking in accordance with an official * Size of companies is taking in accordance with an official classification of the “classification of the “Ley para el desarrollo de la competitividad de Ley para el desarrollo de la competitividad de la la MPyMEMPyME” publicated in DOF with date of december 30, 2002. ” publicated in DOF with date of december 30, 2002.

Employment

2056

4468

647

20375

0 5000 10000 15000 20000 25000

ENSENADA

MEXICALI

TECATE

TIJUANA

EmployeesEmployees

* ProduCen – Direct Research 2004 * * ProduCenProduCen –– Direct Research 2004 Direct Research 2004

•Focused in covering the actual operation necessities•Not dedicated almost in its totality•Is not contemplated a technological change formally

•Focused in covering the actual operation necessities•Not dedicated almost in its totality•Is not contemplated a technological change formally

Industry Structure PLANTS/EMPLOYMENTIndustry Structure PLANTS/EMPLOYMENT

•Small and medium plants, fundamentally•Mayority of Foreign origin•From the sectors of packing, metalmechanicand plastic, fundamentally

•Small and medium plants, fundamentally•Mayority of Foreign origin•From the sectors of packing, metalmechanicand plastic, fundamentally

• Foreigns, fundamentally of United States origin• Medium and large plants• Products diversity and applications

• Foreigns, fundamentally of United States origin• Medium and large plants• Products diversity and applicationsOEM’S

Final Products

OEM’S

Final Products

1st. Level

Subassemblies and part

1st. Level

Subassemblies and part

2nd. Level

Raw material and generic state materials

2nd. Level

Raw material and generic state materials

3rd. Level

Services, indirect and supporting supplies

3rd. Level

Services, indirect and supporting suppliesMúltiples/----Múltiples/----

0 /00 /0

56/27,500+56/27,500+

• Nonexisting level in the state• Nonexisting level in the state

30/3,850 +30/3,850 +

Investiment Origin in Baja California* País de origen - % relativo al número de plantas* * País de origen País de origen -- % relativo al número de plantas% relativo al número de plantas

82%82%E.U.A.E.U.A.

11%11%MéxicoMéxico

5%5%

InglaterraInglaterra/ Suecia/ Suecia

2%2%AustraliaAustralia

* ProduCen – Direct research 2004 * * ProduCenProduCen –– DirectDirect researchresearch 2004 2004

• 28 B.C. plants have corporates or subsidiaries towich reported in California represents the 50%.

•In the region of Los Ángeles are located15 wich represent the 27%.

•In the region of San Diego are located5, wich represent el 9%.

•In the state (B.C.) are located 6, wichrepresent 11%.

TOTAL = 34 operacions with corporates in the region (61%)

Corporates in the region

* ProduCen – Direct Research 2005* * ProduCenProduCen –– Direct Research 2005Direct Research 2005

San Diego

5Calexico

1

Vista 3San Marcos

15LA

Petaluma

2

2

Ensenada 1

Tijuana 4 Tecate1

Comodity 1 1 5 3 7 5 19 17 4 4 4

Intermediate 1 1 3 4 3 15 8 2 6 3

Specialized 1 2 1 3

Ane

sthe

siol

ogy

Card

iova

scul

ar

Chem

.clin

ican

dCl

inic

tox

icol

ogy

Den

tal

Ears

, no

se,

thro

at

Gas

troe

nter

olog

yan

dU

rolo

gyG

ener

al S

urge

ry,

plas

tics

And

hos

pita

lizat

ion

Gen

eral

Hos

pita

l and

for

pers

onal

use

Hem

atol

ogy

and

path

olog

y

Imm

unol

ogy

and

mic

robi

olog

y

Neu

rolo

gy

Gyn

ecol

ogy

and

obst

etri

cs

Oph

thal

mol

ogy

Ort

hopo

dics

Phys

ical

Med

icin

e

Radi

olog

y

Med

icat

ions

1 3 6 6 11 8 36 25 6 0 0 0 5 10 0 0 6

Categorization by application / type

* ProduCen – Direct Research 2004 * * ProduCenProduCen –– DirectDirect ResearchResearch 2004 2004

Reception andstorage

ReceptionReception andandstoragestorage

ReceivingInspectionReceivingReceivingInspectionInspection

MoldingMoldingMolding

ExtrusionExtrusionExtrusion

CoveringCoveringCovering

Metalmechanicprocesses

MetalmechanicMetalmechanicprocessesprocesses

Cutting andseam

CuttingCutting andandseamseam

AssemblyAssemblyAssembly

Final InspectionFinal Final InspectionInspection

PackagingPackagingPackaging

SterilizedSSterilizedterilized

Cleanliness andSecurity

CleanlinessCleanliness andandSecuritySecurity

EquipmenyMaintenance

EquipmenyEquipmenyMaintenanceMaintenance MachiningMachiningMachining

EngineersEngineersEngineers Direction andadministrationDirectionDirection andandadministrationadministration

Storage of PT and SendingsStorageStorage ofof PT PT andand SendingsSendings

ValueChain


SalariesSalaries $ 6,050 dlls/ person/year$ 6,050 dlls/ person/year

TechnicianL2 – 25.5%TechnicianL2 – 25.5%

MiddleManagement

L4 – 6.8%

MiddleManagement

L4 – 6.8%

DirectivesL5 .5%

DirectivesL5 .5%

SupervisorsL3 – 10.6%SupervisorsL3 – 10.6%

Operator-assemblerL1 – 56.6%

Operator-assemblerL1 – 56.6%

Phys

ical

Phys

ical

Phys

ical

Inte

llect

ual

Inte

llect

ual

Inte

llect

ual

131 131 PositionsPositions

1,874 1,874 PositionsPositions




27,500 27,500 EmployeesEmployees

Employment Composition


$ 166’375,000 dlls/year

$ 166’375,000 dlls/year

Value Distribution in the Industry of Medical ProductsValue Distribution in the Industry of Medical Products

Add

edVa

lue

Add

edVa

lue

Pre-manufacture Manufacture Post-manufacture

Key

supp

lies

Man

ufac

turi

ngKe

ysu

pplie

sM

anuf

actu

ring

Gen

eric

supp

lies

Man

ufac

turi

ngG

ener

icsu

pplie

sM

anuf

actu

ring

Conc

eptu

aliz

atio

nan

dde

sign

ofne

wpr

oduc

tsCo

ncep

tual

izat

ion

and

desi

gnof

new

prod

ucts

Ass

embl

yan

dPa

ckag

ing

Ass

embl

yan

dPa

ckag

ing

Dis

trib

utio

nan

dsa

leD

istr

ibut

ion

and

sale

Bran

dD

evel

opm

ent

/ m

arke

tBr

and

Dev

elop

men

t/

mar

ket

Ster

ilizi

ng/

fina

l dis

posi

tion

Ster

ilizi

ng/

fina

l dis

posi

tion

L1L1 L5L5L5L5* ProduCen – Direct Research 2004 * * ProduCenProduCen –– Direct Research 2004 Direct Research 2004

Clean RoomsThe clean rooms installed in Baja California correspond to classes going

from 100 to 100,000, being this last ones the more common

* Intel* Intel -- Brigham Young University Brigham Young University -- IInstitute of Environmental nstitute of Environmental Sciences & Technology (IEST)Sciences & Technology (IEST)

0.1 ? m 0.2 ? m 0.5 ? m 5.0 ? m

1 35 7.5 1 -

10 350 75 10 -

100 - 7502 100 - Medical implants

1000 - - 1000 7 Biomedical Products

10000 - - 10000 70

100000 - - 100000 700

Assembly of diverse medicalproducts

Maxim number of particles by air squarefoot of diameter equal or higher

than the indicatedClass

Typical application in themedical sector

Urine processing units /

Electronic components

The sector presents the opportunity for the development of local suppliers of:

Local suppliers development


•Plastic pieces•Packaging material •Calibration, traduction, michofile, capacitation and specialized consultancyservices•Clean rooms AND Maintenancecertification•Diverse indirects

The profile of suppliers includes as a differencial componentregarding to the other sectors the observation of the applicablenormativity and / or certification in the same one.

Global Operations to supply theNorth American market

* It has been detected the supplies imports and parts tothe state of Asia, Europa and United States, primarily.* * ItIt has has beenbeen detecteddetected thethe suppliessupplies importsimports andand partsparts totothethe statestate ofof Asia, Europa Asia, Europa andand UnitedUnited StatesStates, , primarilyprimarily..


Resins and additivesResinsResins andand additivesadditives

Stainless steel andother metals

StainlessStainless steelsteel andandotherother metalsmetals

TextilesTextilesTextiles

Cardboard and paperCardboardCardboard andand paperpaper

InksInksInks

ChemicalsChemicalsChemicals

ElectronicComponents

ElectronicElectronicComponentsComponents

PlasticPlastic piecespieces

MetallicMetallic PiecesPieces

PackagingPackaging

CircuitsCircuitsBiological AgentsBiologicalBiological AgentsAgents

TextileTextile piecespieces

Medical Medical equipmenyequipmeny

MedicationsMedications

Instrumental Instrumental andandSurgicalSurgical implementsimplements

ConsumablesConsumables / / disposablesdisposables

SubstancesSubstances

Products structure / direct supplies

* ProduCen - investigación directa 2004 * * ProduCenProduCen -- investigación directa 2004 investigación directa 2004

ForeignForeignAvailableAvailable en en B.CB.C..

•Is estimated a materials and direct parts annual consumption ofup to $ 1,500 Millions of USD

Supplies Demand

93%

6%

PLASTICOS EMPAQUE ACCESORIOS

METALES TEXTILES OTROS


Plastics Plastics PackagingPackaging Accessories Accessories

Metal Metal Textile Textile othersothers

Main materials used:

•Polypropylene•VYNIL/ PVC•Polystyrene•Polycarbonate•PET•HDPE•Evoprene

The demand is stated as in row materials (resin) as in processed pieces (molded or extrudedfundamentally).

Plastics Area


65%

35%

Disposition to local purchase

WillingWilling toto thethe local local purchasepurchase

DecisionDecision ofof purchasepurchase in in corporatecorporate


•Exists a considelableproportion of managerswilling to the purchase ofdirect supplies.

•The fraction of not willingcorresponds fundamentallyto those cases in wich thepurchasing decision is notrealized locally.

•2/3 of the sector industries require the sterilizing processfor their products.

•Practically the totality of the sterilizing servicecontracted foreignly fundamentaly in California state, USA.

•In remote cases, the company or its subsidiaries realice their own sterilization. One company located in Ensenada is sterilizing its own products since 2004 (E-Beam) andsending them to different parts of the world. Nowadays itattends only its production internal demand, it has contemplated to offer its services to the public in thefuture.

Sterilizing services

* ProduCen – direct research 2004 * * ProduCenProduCen –– direct research 2004 direct research 2004

Servicios de esterilización • Annual demand stimated of sterilized up to 270 million of cubic fee ofproduct.


-

-33%

-

42%

25%

OTRO

AUTOCLAVE

GAMMA

PLASMA

ETO

E-BEAM

Procesos de esterilizado

•Manufacture, maintenance and repair of cubesand moulds.

•Maintenance services of air conditionedspecialized in clean room with certification.

•Cleanning certified services and water supplyService.

•Service and processes automation equipment.

•Calibration services of measurement equipmentand process machinery.

•Technical documents translation by people withknowledge in the normativity of the sector.

•“Microfiled ” – registers electronic processing

Additional opportunities area

Industry demand for specialized personnelIndustry demand for specialized personnelTechnicians with knowledge in:


•Molding, extrusion and plastic processes•Conditioned air specialized in clean rooms•Design and improvement of the product•Manufacturing and maintenance ofmoulds

General Knowledges:•Technical language of the sector •Computing and english in different levels•Techniques and methodologies ofcontinuous improvement and slimmanufacturing

•Lean manufacturing•FDA and ISO 13485 regulations•Product design, DFM•Microbiology with knowledge in sterilizing processesaccording to type of product and plastic. •Monitoring, control and clean rooms certification•Packaging design•Testing equipment development•PCL programming•Sterilizing in general•Costs and budgets•Materials management•Proyects management•Quality technologies: Six Sisma, FMEA, QFD, exteriments design.

Engineers with knowledge in:


Industry demand for specialized personnelIndustry demand for specialized personnel

Exists a profile of companies from this sector forwhich is convenient a local operation and theconvenience for the state of counting with them, having the posibility of promote the atraction of:

•New companies who complement the valuechain of the existing ones.

•New lines, processes or products to existingplants (applications).

•New companies who generate a economic spillsignifically high in the region.

Select investment atraction

* In the final report is included classified information of companiesparticularly. * In * In thethe final final reportreport isis includedincluded classifiedclassified informationinformation ofof companiescompaniesparticularlyparticularly. .

External analysis

Inte

rnal

Anal

ysis

Situational Audits matrix

Opportunities (O) Threats (T)

Strengths (S)Strengths (S)

Weaknesses (W)Weaknesses (W)

ATRACTIVE - IDEALexcelent position, for grouth

ATRACTIVE - IDEALexcelent position, for grouth

TO MOVE WITH CAUTIONAnalize risks, make a

contingency plan before comingforward

TO MOVE WITH CAUTIONAnalize risks, make a

contingency plan before comingforward

DEVELOPMENTAL CHALLENGE Develop your own capability,

internal work

DEVELOPMENTAL CHALLENGE Develop your own capability,

internal work

NOT ATRACTIVESearch for another business or

focusing

NOT ATRACTIVESearch for another business or

focusing

STRATEGIESSTRATEGIES

To be the regional cluster with

the higher concentration of

development and medical

products manufacturing in the

American Continent.

Vision 2020

•Cluster with binational scope (Baja California, México – California, EUA)

•Increase in number of medical products plants with operations in Baja California with at less 100 companies and more than 50,000 direct jobs in 2 niches: a) high volume products with competitive advantages and b)medium and high specialty products.

•Growth in the operation of the installed companies nowadays intooperations of higher added value via new products and processes introduction (manufacturing, logistics, design and development, client service, and others), which could contribute in the exercise of this operations of around of 20% in average and better levels of salary.

•Production and exports value increasing in at less 200%

• Positioning between the 5 main players in industry in medical devices of high specialty around the world.

•Cluster with binational scope (Baja California, México – California, EUA)

•Increase in number of medical products plants with operations in Baja California with at less 100 companies and more than 50,000 direct jobs in 2 niches: a) high volume products with competitive advantages and b)medium and high specialty products.

•Growth in the operation of the installed companies nowadays intooperations of higher added value via new products and processes introduction (manufacturing, logistics, design and development, client service, and others), which could contribute in the exercise of this operations of around of 20% in average and better levels of salary.

•Production and exports value increasing in at less 200%

• Positioning between the 5 main players in industry in medical devices of high specialty around the world.

Descriptive characteristics

•Greater integration of the productive chain by way of local suppliers that permit to elevate the content of the nearby present level al 5% to the 20%*.

•Availability of mass criticizes of human resource prepared according to the requests of technology and regulatory nature of the cluster that permits the development of the productive activity, business and the promotion to new technologies, products and processes.

•Linking with the educational institutions and centers of investigation to promote the development of joint projects of mutual benefit.

•Dynamic network of support agencies focused on the requests of the industry (chambers, associations, consultants, among others.)


•Backup infrastructure that facilitates and encourages the operation of the cluster (harbor services, highway administrations, frontier crossings, services specialized

•Pertinent normative environment and without bureaucratic complications, which could promote the development of the cluster.

•Conscious community of the importance and benefits of this cluster in the region, that therefore supports the development of the same one; an industry with high social commitment that interacts with the community in which develops its operations to contribute to the health, culture, sport and other aspects relating to the quality of life.


Strategy unfold

“Reflecting on the past, to act in the

present, to plan for the future”“Reflecting on the past, to act in the

present, to plan for the future”

[email protected]

Tel. 01-800-025-5840(664) 634 3635

Fax (664) 634 3629

Paseo de los Héroes 10289, 2do. PisoZona Rio ,CP 22320Tijuana, Baja California

medical products cluster of baja california€¦ · anesthesiology cardiovascular chem.clinic and...

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