Saturday, August 4, 2012

New Growth Industry: Medical Device Manufacturing




The growth of medical device manufacturing could have a tremendous impact on West Michigan. I was treated to a first-hand look at the potential offered by that industry during a meeting August 3, 2012 with Keystone Solutions Group Principal Jim Medsker, Keystone Director of Sales and Business Development Robert Nesky and Tiger Lab’s Alison Keutgen.

Keystone, based in Kalamazoo, and Zeeland-based Tiger Lab have a long history of working together in strategic partnerships. The latest effort has resulted in the creation of an oxygen flow diverter, an idea that came to Keystone from the mind of a Zeeland Hospital nurse.

What a team! This is such a great story for a variety of reasons. We have different companies in West Michigan partnering in a very strategic way to innovate, create and market together. The idea came to them from someone outside both companies, and there is one more element to this partnership, the involvement of Spectrum Health.

More on this story will be posted in the days ahead as we explore an industry that has both a strong history and incredible potential for West Michigan, medical device manufacturing.

The Keystone-Tiger Lab story will be explored in greater detail in Manufacturing Renaissance, which will be published in early September.

The medical device industry is no stranger to West Michigan, as is detailed in Last Chance Mile: The Reinvention of an American Community.  We have one of the largest medical device makers in the world in Kalamazoo, Stryker Corp.
But could this community grow? Might this be the next cluster of prosperity in West Michigan? It oculd happen. In fact it is happening.
Here's an excerpt from a visit I made to the West Michigan Science and Technology Initiative on Medical Mile and a conversation I had there with the head of the West Michigan Medical Device Consortium, Don Beery about growth the medical device community:
  It will not be easy. “It will take time. It will take effort. It will take money,” Beery said as he pointed out his office window overlooking Medical Mile. “But we have demonstrated before that we are willing to do that and we know how to do that.”
  He sees the public-private sector partnership model that rebuilt Grand Rapids 20 years ago –I have said it before and I will say it again, this is not the city I moved into in 1990—as being critical to moving the region into the Top Five for medical device manufacturing. “It is night and day in Grand Rapids,” Beery said, “because some folks cared about it and invested their time, energy and money in it. I’m not so sure we can’t pull it off.”
  Venture capital and angel investment money will be important and he said there is never enough of that to go around, although Beery added that he sees the situation improving.
  He also sees great potential for the Grand Rapids community if the area can become a Top Five medical device maker because it is manufacturing. Nothing feeds the family like manufacturing. Factories are capital intensive, land intensive –that means tax revenue—and jobs that are high-skilled, high-wage positions.
  Beery said medical device jobs have an incredible multiplier impact. They create more than 3.5 jobs for every medical device manufacturing position. The initial job pumps money into the economy, big time, with the average annual salary 22-percent higher than the typical job in Michigan.
  However, as much as Medical Mile is about organic growth, creating, developing and monetizing home-cooking, Beery doesn’t think that will be enough. He believes we are going to have to go out and convince one of the big players to move to our town, planting their flag here. “That is the kind of velocity we are going to need to go there (to the Top Five) in a reasonable amount of time.”
The complete interview with Don Beery, along with more on what is happening on Medical Mile and how that cluster of prosperity has transformed Grand Rapids is available in Last Chance Mile: The Reinvention of an American Community available now through www.rodkackley.com






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