AdvaMed White Paper Recommends Six Priority Areas for Building Medical Technology Supply Chain Resilience

WASHINGTON, D.C.—AdvaMed, the Medtech Association, today released a white paper recommending six priority areas including public-private partnerships, facilitating transportation, and supportive policies for building medical technology supply chain resilience. The priority areas will guide supply chain partners, policymakers, and government agencies in pursuing initiatives that support medtech manufacturers’ ability to deliver stable supplies of life-enhancing, lifesaving medical technology for patients.

“The medtech industry relies on global supply chains,” said Scott Whitaker, AdvaMed President and CEO. “Over the past three years, we have been challenged by constraints on vital raw materials and inputs. While our market share and purchasing power are dwarfed by other manufacturing sectors, no one would argue against the importance of delivering lifesaving technologies. Semiconductor chips are a prime example of a product critical to medtech and also in demand by other industries. This paper offers a road map to emerge from the last three years stronger and more resilient through six priority areas that will enhance supply chain diversity and agility across all of the entities whose performance is critical to delivering for patients.”

The new white paper, Building Medtech Supply Chain Resilience, describes prioritization by suppliers and governments alike as the common thread throughout its recommendations. The white paper states, “Whether medtech manufacturers are vying for limited raw materials, parts and components, transport space or shipping lanes, the medtech ecosystem, and healthcare products writ large, must be prioritized due to their direct linkage to patient outcomes and resilient healthcare systems.”

The six priorities:

The immediate and long-term prioritization of medtech needs for sufficient quantities of critical components such as semiconductor chips and medical grade packaging among industries competing for supplies.

Supporting greater diversification of supply chains to reduce barriers to the flow of goods and strengthen public-private partnerships to enhance resiliency and agility and reduce over-reliance on any one market for any aspect of manufacturing or supply.

On transportation, formalizing a “fast pass” or “green lane” at the national and international levels to expedite the handling of critical medical products and inputs at ports of entry.

Public-private partnerships to enhance steady-state visibility across the health and public health supply chains and ensure the medtech industry is well-positioned to quickly mobilize in any crisis or disruption.

A supply chain coordination office within the U.S .Department of Commerce to work with stakeholders to identify the upstream needs of critical sectors, direct domestic investments, and engage partners and allies to address vulnerabilities to prevent disruptions.

Workforce training and apprenticeships, including the utilization of public-private partnerships in collaboration with academia, to advance a new generation of medtech manufacturers in the United States, including at nodes of transport, warehouses, and with key suppliers.

The medtech industry welcomes action from Congress and the Biden Administration to strengthen supply chains for medtech and other industries. As an example, Commerce Secretary Gina Raimondo amplified medtech as a priority for semiconductor chips after last year’s passage of the bipartisan CHIPS Act with investments and incentives to bolster the domestic manufacturing of semiconductor chips. Through prioritization of supply chain resiliency, the medtech sector will strengthen its position as a globally competitive industry driven by innovation to improve patient outcomes.