Surgical Industry at A Glance
Surgical Industry at A Glance
Surgical Industry at A Glance
Glance
Abstract:
Surgical instrument manufacturing industry
originated in the early 1940s in and around the
city of Sialkot. The sector manufactures a wide
range of medical, surgical and veterinary
instruments exporting 80-90 % of its production.
This industry is suffering badly in international
market. In spite of the fact that this industry has
the potential to earn sizeable foreign exchange
but it needs to be fully explored. The purpose of
this report is to take an insight into the industry
structure, identifying the major issues and
problems affecting the industry, uncover the
constraints of the industry and put forward some
suggestions to overcome the existing problems.
Introduction:
Chronologically manufacturing of surgical
instruments started in the regions that were
traditionally involved in forging of metals,
particularly for knives and swords etc. at the end
of the 19th century surgical instruments
manufacturing started in this region, when the
American Mission hospital in Sialkot for the first
time got its scalpels and other instruments
repaired from the local artisan community of
blacksmiths. These craftsmen successfully
replicated these imported instruments, which
were being used by the hospital.
Sialkot surgical industry started exporting
surgical instruments to the foreign market in
1930s. To institutionalize the local expertise of
manufacturing surgical instruments and provide
common facilities to the manufacturers, the
British Government established the Metal
Industries Development Centre (MIDC) in 1941.
This helped the industry to shift from
manufacturing of basic metal products to
precision
surgical
instruments.
After
1
2
3
Year
Exports
USD
322
Million
354
398
412
485
Industry Structure:
The production of the industry can be broadly
classified into two categories, i.e. disposable
instruments and the reusable instruments (OR
instruments). The largest market for Pakistani
disposable instruments is USA. Majority of the
reusable instruments, manufactured in Sialkot,
are exported to the European countries.
Industry at a Glance:
Total number of units
Installed Capacity
Total Capital
Investment
No. of worker
No. of people
involved
(Direct/indirect)
Export
World market of
surgical instrument
Production
Source of Machinery
Approx. 2400
200 Million
Pieces/annum
Rs. 12.0 billion
100,000-150,000
350,000-450,000
US $ 156 Million
US $ 30 billion
100 million Nos.
Germany, UK, USA,
China
http://www.trademap.org/Country_SelProductCoun
try_TS.aspx
Instruments
Suture
Plaster
Bone Surgery
Neurology
Tracheotomy
Cardiovascular
Lung Surgery
Dermatology
Ophthalmology
Otology
Rhino logy
Oral Instruments
Tonsil
Sterilization
Urology
Gynecology
Obstetrics
Intestinal & Stomach Rectum
Manufacturing Standards:
Surgical industry is the sector where quality is
major issue of concern. Recently its importance
has increased manifolds given the increasing
global competition and new regulations being
enforced by the developed countries. These
regulations require the exporters of the
developing countries to introduce systems
focusing on the improvement of management,
labor, technology, and all the other fields which
in any way affect the firm.
The surgical instrument standards must be in
conformance with WTO standards. Over 300
Companies have ISO-9002 Certification and
about 250 have Certification of Good
Manufacturing Practices5.
Sialkot Material Testing Laboratory (SIMTEL)
A UNIDO assisted material testing laboratory has
been set up in Sialkot in the year 2000
comprising of three laboratories:
Spectro Lab
Metallographic Lab
Chemical Testing Lab
Production Process (Value Chain):
In order to develop detailed understanding of the
issues and problems faced by a particular
industry, it is of prime importance that an in depth
analysis of the value chain is carried out. During
the process of production, value is being added at
each stage of the production, from the first stage
of raw material to the final stage of finished
product, a product undergoes a series of processes
until it attains its final shape.
Manufacture and Supply in Sialkot:
Manufacturers of surgical instruments in Sialkot
need to minimize costs to remain competitive. To
5
BOI Pakistan
Raw
Material
Sharing
Forging
Annealing
Trimming
Machining
Initial
Assembly
Filing
Heat
Treatment
Electropolishing
Finishing &
Final
Assembling
Testing &
Cleaning
Labelling &
Packahing
Die
Making
SWOT Analysis:
Strengths of Surgical Instrument Industry
Geographical Concentration
The surgical instrument industry of Pakistan is
concentrated in the city of Sialkot and its
periphery. With the passage of time industry grew
in the region surrounding Sialkot, within the area
of some twenty-five kilometers, also became an
essential part of the surgical instrument industry
structure. Concentration of surgical instrument
manufacturers and sub-contractors within a
particular region is the biggest strength of the
industry, which is depicted by the collective
efficiency of the overall industry.
Economies of Scale
As the number of instruments manufactured each
year is more than 100 million units. Such large
volumes in the presence of specialized subcontractors have given Pakistan surgical industry
1) Cutting instruments
2) Grasping or holding instruments
3) Haemostatic forceps (instruments used
to stop blood flow)
4) Retractors
5) Clamps and distractors
6) Accessories and implants