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NuVasive Ahead on In-House Manufacturing Hires

NuVasive is ahead of schedule in hiring 300 people at its manufacturing facilities in Ohio, according to local press. The company had hired nearly 150 employees in early February 2017, and is expected to fill all remaining positions by the end of the year.

In 2015, NuVasive announced plans to boost in-house manufacturing from 30% to nearly 100%. First insourcing steps occurred in 2013 with a purchase of ANC for $4.5 million. NuVasive then announced a $45 million investment in a 180,000-square-foot facility in West Carrollton, Ohio, ~30 miles from the ANC facility.

The remodeled plant is expected to house 100 CNC machine tools, inspection equipment and clean room operations. About 40,000 pieces were machined in West Carrollton in 2016, leadership said during its 4Q16 earnings call.

The decision to bring manufacturing in-house was based on leadership’s goal of hitting a 20% operating margin as the company drives to $1 billion in revenue. Vertical integration of manufacturing was the greatest opportunity to hit that 20% target.

NuVasive’s 2016 revenue was $962.1 million, +18.6% from 2015. For 2017, full guidance is $1 billion.

Globus Medical plans to increase in-house manufacturing capacity, as well, targeting 50%. Globus is on track to hit that goal by 2018, according to leadership.

 

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