Phase 2 Medical Manufacturing, Inc. selected Tijuana as the site for a new offshore medical device contract manufacturing facility.
The initial search began in Costa Rica. While Costa Rica is well known for its medical technology industry, Phase 2 felt that they could not manage costs as well for their customers because of increased real estate prices and scarcity of skilled labor.
“Our medical device clients told us off-shore or near-shore, lower-cost labor would be important when it came to medical product outsourcing in the future,” said Adam Prime, CEO of Phase 2 Medical Manufacturing. Add higher shipping costs and 18-day shipping times, and Phase 2 Medical began to look elsewhere to complete their medical assembly and medical packaging businesses. After hearing good things about cost, an abundance of skilled labor and the willingness of the economic development agency to work with new companies, Prime and his team began to seriously consider Tijuana, Mexico.
When it comes to medical product outsourcing and medical device manufacturing, lower cost and close proximity to the U.S. are big deals for us,” Prime said. “Tijuana meets both those criteria.”
By the end of the year, the company expects to employ 20 people in its Tijuana plant. It has a staff of 170 in New Hampshire.