| Chrysler, the #3 American car manufacturer filed for | | | | Program, will address the current lack of bank |
| bankruptcy protection with 39 billion more in debts than | | | | financing available to companies that are attempting to |
| assets. General Motors (GM), the #1 American car | | | | diversify. Under the loan program, the MEDC will |
| manufacturer filed for bankruptcy protection with 91 | | | | partner with private lenders to offer loan participations |
| billion more in debts than assets. Since February 2000, | | | | with little or no interest payments for a specific period |
| employment in motor vehicles and parts has declined | | | | of time. |
| by approximately 50 percent. (Source: Bureau of | | | | I recently attended an event in Ohio about Transitioning |
| Labor Statistics) So what is to become of the | | | | Ohio Manufacturers to Medical Device Production and |
| automotive suppliers? | | | | had a few takeaways: |
| Maybe we can all learn from the state of Michigan. | | | | Biomedical has three categories from simple tongue |
| Michigan is helping automotive suppliers transition to | | | | suppressors to heart valves and there are regulations |
| biomedical device production. The biomedial sector is | | | | associated with each category |
| GROWING at around 5.7% per year and the U.S. is a | | | | - It may take 3-7 years to get a product to market |
| leader in biomedical exports in the world. (Would you | | | | - If a manufacturer wants to get involved in biomedical |
| want something installed in YOUR body made in a | | | | it begins with early relationships with biomedical |
| foreign country?) Automotive suppliers have many of | | | | companies while they are developing the prototype |
| the same skills, capabilities and systems in place to | | | | with the upside that the manufacturing contract may |
| produce biomedical devices... it is a matter of retraining | | | | last 10 years or more |
| workforce, tracking all raw material lots into a batch of | | | | - Ohio has established incubators for biomedical |
| products and understanding ISO 13485. Michigan has | | | | devices - one across from the Cleveland Clinic and |
| provided training for some automotive suppliers to | | | | BioStart in Cincinnati |
| transition to biomedical devices and Michigan is | | | | - ISO 13485 covers medical device production |
| launching a fund to help manufacturers diversify into | | | | - Medical devices go through a decontamination phase |
| new emerging sectors such as medical devices. The | | | | via gamma radiation or electronic beam. For example, |
| Michigan Economic Development Corporation (MEDC) | | | | regular plastic or metal devices can go through a |
| recently unveiled the Michigan Supplier Diversification | | | | decontamination process and then be sold as a higher |
| Fund. Its first program, the Michigan Loan Participation | | | | margin biomedical device. |