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“Become a more diverse provider.” This 2017 market opportunity was a resounding response from device and supplier company leaders whom we surveyed in 2016. Companies are exploring myriad approaches to diversification, from launching new brands to entering new markets to engaging in acquisitions. These paths are often directed by company size and focus.
In thinking of diversification, three of orthopaedics’ top 15 device companies come to mind based solely on 2Q17 activity: Orthofix’s launch of the JuniOrtho pediatric brand; Globus Medical’s pursuit of regulatory clearance to enter the robotics market and DePuy Synthes’ acquisition of 3D printing technology.
I mention the top 15 because 74% of the $48.1 billion in 2016 worldwide orthopaedic product revenue was derived from these 15 device companies, which are listed to the right. The companies on this list, and especially the top five, often lead the adoption of new business models, technologies, industry norms, etc. The remaining 26% of industry is made up of hundreds of companies and thousands of professionals who also seek to drive innovation by responding with a level of agility that can’t be matched by the bigs.
Now, almost halfway through 2017, it’s important to identify the tools and expertise needed for the next seven months to satisfy your company’s diversification commitments. In considering those needs, I challenge you to tap into the diverse mindset of your peers—at companies large and small—to learn and collaborate.
Nearly 1,000 orthopaedic industry professionals from around the world will gather at OMTEC, the Orthopaedic Manufacturing & Technology Exposition and Conference, on June 13 to 15 in Chicago. Attendees include surgeons, representatives from the largest contract manufacturers, to testing labs and material providers, as well as the previously-mentioned top 15 device companies and representatives from startups. This is an opportunity for you to meet and gain knowledge from their experiences.
Alongside those conversations, you can glean insight from industry executives on ways that your diversification priorities fit within the answers to these forward-looking questions:
- What will be the leading technologies in 2025?
- Who will be the leading companies?
- How will M&A shift the market players?
- How will materials (e.g. bioabsorbables) and manufacturing processes (e.g. additive) be adopted?
- What products and services will suppliers add to their portfolios to assist device companies in meeting their goals?
- How will suppliers assist OEM customers in responding to changing industry behaviors?
These questions will shape the conversations during OMTEC’s Wednesday Keynote Address and Closing Session. Executives from Amendia, DePuy Synthes, Kinsella Group, Lima Corporate, Tecomet and analysts will offer perspective on the orthopaedic industry’s future. Further, their voices will be positioned alongside data published in THE ORTHOPAEDIC INDUSTRY ANNUAL REPORT®, which provides a comprehensive overview of the market and a snapshot of industry trends and growth through 2021.
A benefit of conducting business today is the vast number of resources available to aid in making strategic decisions to diversify—or conversely, to specialize. The value of OMTEC is that there are a thousand resources in one place to upgrade your toolbox.
