Read the Conversation
Meeting Highlights:
- From Small to Strategic: ICU Medical Costa Rica’s evolution from a small operation to a major, vertically integrated medical device manufacturer.
- Focus on Complexity: Strategic focus on high-complexity, high-value processes.
- Industry Shift: The country’s medical device sector has shifted toward advanced engineering, R&D, and complex manufacturing.
- Developing Talent: Talent development is a national priority, with strong partnerships between industry, government, and universities to upskill the workforce.
- Exporting Expertise: Costa Rica exports not only products but also knowledge and skilled professionals to global operations.
- Logistics Advantage: Robust supply chain management and strategic geographical location support efficient logistics and market access.
- Collaborative Quality: Emphasis on supplier collaboration and continuous process improvement sustains high product quality and business growth.
- AI in Manufacturing: AI is transforming manufacturing by enhancing process control, error prevention, and predictive maintenance.
- Core Operations Hub: Costa Rica operations are central to ICU Medical’s infusion systems business, providing end-to-end value stream control.
- Leadership Insights: Leadership reflections highlight the importance of culture, accountability, and best practice sharing across global sites.
EF: ICU Medical has grown significantly over the past 25 years, including major acquisitions. Could you elaborate on your journey and the company’s evolution?
IG: I’ve been with the company for over 25 years, starting when we were part of Abbott Laboratories’ Hospital Products Division (HPD). We spun off to become Hospira, which was later acquired by Pfizer. During all those transitions, ICU Medical was our supplier. When ICU acquired us, it was unique—a supplier acquiring the company it sold to. This was a strategic move, shifting our focus fully to medical devices and making us one of the largest companies dedicated to the field. Our core business was strengthened, and aligning strategy with such business deals has been key to our growth.
Our Costa Rica facility focuses on infusion systems, including pumps and dedicated intravenous sets. This is our core business, and it’s how the company has grown. We have brought in processes from many places, but always with the core business in mind. We have plants in Mexico, the US, and Europe—ten plants globally—but Costa Rica is mostly dedicated to infusion systems, as is our plant in Poland.
When seeking investment, we must be savvy about return on investment and alignment with your core business. That’s how we keep the facility growing within the same business boundary, controlling the entire value stream end to end. This is a competitive strength—you own the whole process, and accountability is powerful.
In our field, we strive for perfection, especially since we manufacture devices that, in many cases, may help save lives. Achieving perfection requires trust in your workforce and in your manufacturing location. This is not just a financial or cost issue; it’s a cultural one. The quality we achieve is a result of this trust, and Costa Rica has become a hub for complex and reliable products. The complexity and reliability of products made here are a testament to that.
EF: What are your current priorities following this vertical integration, and how does it shape your operations?
IG: Vertical integration is a primary focus. I believe in the value of owning your process from end to end, but it’s about choosing the right core processes to manage. This focus leads to quality improvements and cost-effectiveness. Over time, as you improve quality and process controls, profitability follows naturally. We manage our core competence products in-house, supported by third-party partners where needed. The Costa Rica operation is 100% aligned with this vertical integration approach—we handle everything from raw resin to assembly, serialization, and beyond, all under one roof. This setup, along with on-site R&D and Engineering, positions us for success.
Costa Rica has done an excellent job focusing on high-complexity processes. It’s not the cheapest place in Latin America, but it offers a strong setup for high-value, complex manufacturing. You won’t see basic assembly here anymore; instead, we focus on engineering, design, and process development. Over the past 20 years, the trend has been toward higher complexity and value-add in the products we manufacture. This is where Costa Rica excels and where most of the industry’s growth has occurred.
EF: What is Costa Rica’s value add for manufacturers, especially given the high local operating costs?
IG: Our value lies in the complexity and quality of the products we manufacture. Many of these products are typically made in countries with high costs, but Costa Rica stands out by adding substantial value through skilled labor and advanced processes. This makes local operating costs less challenging because we’re not just competing on price—we’re delivering expertise and reliability. The environment here is stable, both socially and politically, which gives companies the confidence to invest and expand. The workforce’s ability to learn quickly and handle high-complexity processes has led to consistent success and growth for companies operating here.
Our success has also created new expectations—what I call “waking up the monster.” Now, we must continually feed this ecosystem with high-quality products and opportunities, which I see as a positive challenge. The opportunity for further growth and leadership in the sector is significant.
EF: What are the key challenges and opportunities in building a robust supply chain for high-quality manufacturing in Costa Rica?
IG: Managing a robust supply chain starts with understanding your value stream and building strong partnerships with suppliers. High-complexity products often require raw materials with long lead times, so it’s crucial to treat suppliers as partners, not just vendors. Accurate forecasting is always a challenge, but open communication and collaboration help suppliers prepare and adapt to changing needs.
We work closely with suppliers from the R&D stage through to production, encouraging them to be part of the process. Many improvements originate on the manufacturing floor, and having mechanisms to feed these insights back to engineering and procurement teams is vital. When suppliers are receptive and engaged, the entire value chain benefits.
Costa Rica’s geographic location also supports efficient logistics, enabling us to source materials globally and supply markets in the US, Canada, Europe, and Latin America. The country’s infrastructure and strategic position make it an excellent hub for international manufacturing and distribution.
EF: What is your approach to leveraging AI and digital transformation in manufacturing?
IG: AI comes into play when you have robust algorithms to control your processes, identifying risks ahead of time to minimize them. Everyone should be exploring AI because it’s the new trend—if you don’t, you’ll fall behind. In the medical device world, proper use of AI means saving lives more accurately. We see many companies training their people on how to leverage AI, from simple inspection algorithms to advanced process control and failure prediction. It’s also valuable for analyzing customer data, which previously required large teams. Now, these technologies allow us to capture and analyze data scientifically, transforming how we work. In general, we all need to be looking at AI and choosing the right parts of the process for its application.
EF: How are you developing the new generation of talent at ICU Medical Costa Rica?
IG: When developing talent, you must recognize that people change and new generations have different perspectives. You need to leverage their interests and desire to grow. In large companies, there’s a big labor force and a great opportunity to move people around and cross-train them. We focus on creating platforms for additional training, regardless of current roles.
We train people to be ready when the time comes. Our program in Costa Rica rotates people and always offers opportunities. Previously, we hired 65–75% of people externally. Now, with our new approach, only 10% to 20% are hired externally, as we have trained people internally to grow. We also recruit from local universities, bringing in fresh talent and showing them a path for growth.
We’re trying to promote this model beyond ICU Medical, working with other companies and the government to develop talent across the sector. While some companies may hire away our people, it’s ultimately beneficial for the country if those individuals move on to great jobs elsewhere. The alternative—undeveloped talent—would be worse.
Also, Costa Rican professionals often take on assignments in other countries, and we welcome international colleagues for cross-training. This exchange strengthens our reputation for exporting not just products, but also expertise and leadership in medical manufacturing. Our people are known for their adaptability and collaborative mindset, which is a real asset in the global industry.
EF: Reflecting on your years as a leader, what are your key takeaways?
IG: Becoming a VP has shown me the importance of people and culture. When you visit other facilities and see how they operate, you notice cultural differences, but also common threads that drive a strong organization—quality focus, teamwork, and process discipline. Once you’re responsible for multiple locations globally, you focus on identifying and sharing best practices across all sites. It’s about translating what works in one place to benefit the whole organization while always keeping in mind that people are the main drivers.
