MedTech Insights and Expertise

The Human Side of MedTech Automation

How MedTech contract manufacturers are capturing the interconnectivity of automation and upskilling employees

Like many industries, MedTech contract manufacturers are looking at ways to harness the power of automation to operate more efficiently, reduce labor costs, and leverage capital to invest in meaningful technology.

Let’s focus on the labor arm of productivity.  Shifts in digital technology and automation have changed what operations can achieve and how labor is best utilized. One of the goals with a highly productive operation is to raise the top-line output per employee.  To achieve greater output, MedTech contract manufacturers are redefining culture and systems to empower leadership to apply technology where it can uniquely add benefit while augmenting and upskilling employee capabilities.

By upskilling employees and layering in automation and digital technology, MedTech manufactures can operate more efficiently and profitably while giving workers the ability to multiply their impact and earning potential all while growing the organization.

Observation from Robert Kinsella…

“I spent time recently with a successful business owner of a MedTech contract manufacturer who explained his approach to growing his business and dealing with the prospect of labor shortages. On a slow walk through one of his plants, he pointed out how he had selectively added automation on the material feed and part delivery sides of his machine tools and part inspection activity. He has one engineer focused exclusively on the task of identifying and implementing automation opportunities. As a repetitive task is identified and determined to be suitable for automation – planning, equipment acquisition, and implementation are undertaken in sequence. Once automation has been introduced and made effective, the employee or employees replaced by automation are moved to tasks that require some degree of discretion or higher skill level. The Company undertakes to train the displaced employees to retain good performers. In this way management keeps the workforce intact and justifies wage increases for employees assuming higher level tasks. Employees embrace the automation because they find themselves moving to higher value-added activity and higher wage rates. The automation supports volume increases while minimizing the need for new hires as the business revenue grows.

Sounds simple but strategy and purpose are at play here with the staffing of an engineer with automation experience and mindset as well as managers who embrace the concept and look for possible applications of automation and senior management willing to invest in automation tools were critical elements of success.”

Capturing the interconnectivity of automation and upskilling employees is having a positive impact on maximizing the return on talent while also positioning the organization for growth and abundance.

Learn more about how Kinsella Group is helping MedTech contract manufacturers scale or position their business for sale with optimal results.  Visit our Website >


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