Midmark – celebrating its 100th year in 2015 – services many markets worldwide, but services the domestic market with products made, almost entirely, in the United States. “This has less to do with patriotic fervor than it does with good business practice,” says Jon Wells, vice president, marketing, medical division.
“Our customers, no matter where they are in the world, have an expectation of quality associated with the products and services they buy,” he says. “Midmark has found that research, design, development and service of products within the geographic area in which they provide care is the most successful. But this is not a hard rule, as there are exceptions in which Midmark sells and services product within regions far removed from where they were designed and built.
“Generally speaking however, a close connection to customers will produce better, more predictable results, where the products and services are much more market-sensitive.”
There’s no doubt that manufacturing in the United States offers some challenges, says Wells. “Whenever the U.S. attempts to address problems with legislation, we inevitably create unintended consequences,” he says. “Regardless of whether we favor sweeping legislation or not, the Affordable Care Act is having a significant impact on our healthcare system.” Providers are under considerable pressure – both by carrot and stick — to make changes for which many are unprepared or unwilling to make, he points out. “Organizations under tension can do unpredictable things, and this uncertainty presents a unique set of challenges.”
One provision of the Affordable Care Act – the 2.3 percent tax on the sale of certain medical devices — was intended to help balance the funding of expanded coverage for uninsured. But it has presented a new burden for medical device manufacturers, Wells says. “This excise tax has reduced the ability of medical device manufacturers to fund research and development. The irony of this is that this is where innovations originate and fuel the advancement of patient care and improved outcomes. Ronald Reagan said it best: ‘If you want less of something, tax it.’ It puts the U.S. at a competitive disadvantage around the world and is presenting its own set of challenges.”
Despite these challenges, the opportunities to be gained by “U.S.-made” are great, Wells adds. Midmark services the medical, dental and animal health markets both domestically and internationally, he says.
In international markets, U.S.-made products are desirable due to the equity in “Made in the USA,” he says. “This is due to many reasons, including the perception of a highly regulated device, skilled workforce, and strong brands.”
Here in the United States, sales reps can focus “on the market-sensitive nature of the design and the associated service levels of having a product domestically designed and made,” he continues. “Their customers will have a well-designed product for their unique needs, not a product that has been designed from matching a spec sheet at low cost. Nothing better!
“Midmark has a half century of experience working with clinicians to improve efficiency and outcomes associated with the patient/doctor experience in an exam room setting. This foundation has enabled us to expand to other markets, such as dental and internationally. We have learned through thousands of interactions with caregivers, which have been equally rewarding for both. This combination of market dynamics and Midmark’s experiences is currently a catalyst to uncover opportunities with customers and growth.”