Ci Medical changed its name in June to reflect that "over the past decade we have been using 100 percent of our expertise to service customers in the medical and pharmaceutical device markets," CEO
The medical industry offers more stability and opportunity for expansion, said Subasic, who joined the company in 2010 and was named chief executive in 2011. Previously, he was chief financial officer of
"That's the next phase of our business," he said, referring to the company's interest in buying competitors. "Our industry is ripe for consolidation."
Subasic declined to name targets, but said the company is well capitalized thanks to its owner,
The company isn't new to acquisitions. In 2009, Ci Medical bought
Ci Medical's sales were
He declined to name customers, but
Even with steady demand for health care products, the industry and Ci Medical have challenges. For one, runaway health care spending has led to efforts to control costs.
While the company's customers are "always looking for cost savings," Subasic said Ci Medical's growth has allowed it to take on contracts for larger volumes, "which helps to alleviate the pain" of tighter margins.
Also putting pressure on medical manufacturers is the scrutiny of the
"Certainly, health care is a growing industry," said
That creates a high bar to enter the market, Manzetti said. "You have to be a very high-quality manufacturer."
Medical device makers are being squeezed by a 2.3 percent excise tax levied by the Affordable Care Act.
On a recent tour of Ci Medical's plant in
"Our energy costs are down 30 percent, even with more business," he said.
The brightly lit space was highly automated -- if parts aren't touched by humans, there's less chance of contamination -- with robotic arms lifting plastic pieces from molds and dropping them into collection bins.
The company has about 550 employees worldwide, with 225 in
There may be pressures to reduce prices, become more efficient and meet regulations. But the company's future is bright because "we have an aging population, so the need for medical components is growing," Subasic said.
"Our industry is a growing industry."
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