By Sean Fenske, Editor-in-Chief

Due to a number of factors, medical device manufacturers as well as their supply chain partners, are examining different areas of the world. For some, it’s to establish or evolve a local-for-local strategy. Others are interested in diversification of their sourcing and supply chains. Regardless of the reason, Asia is not an area that can be ignored as a potential location for a supply partner or facility.

Unfortunately, not all companies are familiar with areas of Asia, specifically China and India. They may have an interest in the region but haven’t yet performed a deep dive into the considerations they need to be aware of when working with a company in either country or establishing a facility there. They have questions about the state of business in one or both countries and are seeking answers.

Fortunately, Thomas Taylor, Founder & CEO of Foxx Life Sciences, has experience in working with both nations and is happy to share his knowledge in the following Q&A. He explains the advantages China and India offer, what considerations are important yet often overlooked, and how they compare to each other.

Sean Fenske: What’s driving companies to reevaluate different global regions for their medical device outsourcing needs?

Thomas Taylor: Diversification is critical in today’s complex supply chain. Too many companies have all their supply chain in China or one country.

Fenske: What role can India play in easing outsourcing challenges?

Taylor: India will play a huge role moving forward in my opinion. We opened our first plant in India five years ago, and today, we have three plants, including a world-class molding facility. India is a democracy with a new business focus under the leadership of Prime Minister Modi. He is brilliant and understands the business opportunity.

Fenske: What benefits does India offer to medical device manufacturers? What areas are still in need of attention?

Taylor: Engineering graduates are exploding in India. With a large pool of talented technical professionals, the country continues to grow as a serious contender to other Asia countries. Unfortunately, there are areas still in need of attention. Infrastructure in India is still lacking. In addition, it is still very difficult to start a business and get it up and running in India. Local government and location have a significant impact on your success.

Fenske: Given the political attention that’s on China, is it still a favorable location for medical device outsourcing? Why or why not?

Taylor: I would argue as long as the communist party is in control, it will be a political challenge. I have been going to China for more than 28 years, and I have always been impressed with the people and the business culture. However, the political pressures in so many areas make it a risk in the short and long term. Tariffs make this situation even worse.

Fenske: How do India and China compare for medical device manufacturing? Is one region advantageous over the other for specific reasons?

Taylor: China always had an edge in this area. However, with colossal investments in India over the past few years, things are starting to change. Foxx recently made a substantial investment in the country with one of the most state-of-the-art molding facilities in Southeast Asia. The plant is filled with the latest full-electric robotic molding machines and has both Class 7 and Class 8 cleanrooms. It is a world-class facility and on par with the best in the U.S. and Europe.

Fenske: What do companies neglect to consider when seeking to outsource to China or India? What’s an important factor they need to keep in mind?

Taylor: Communication and culture. You cannot manage plants in these regions with international people. It needs to be managed by talented locals.

Fenske: Do you have any additional comments you’d like to share based on any of the topics we discussed or something you’d like to tell medical device manufacturers?

Taylor: Expect India to continue to grow as a medical products outsourcing destination. I would try to find and work with American or European companies in this region of Asia. There are and will continue to be significant opportunities in India moving forward.

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