Read the Conversation
Meeting highlights:
- Expansion into High-Growth Sectors: The company is actively growing its footprint in minimally invasive surgery, drug delivery, and diagnostics.
- Capability-Driven Strategy: Recent investments have expanded capabilities with new facilities and technologies.
- Strategic Refresh for a New Chapter: Since 2022, the company has focused on aligning its strategy with long-term growth in the MedTech and Pharma sectors.
- Collaborative Leadership Approach: Leadership is rooted in inquiry and team collaboration, empowering internal talent to surface the best solutions.
- Culture of Recognition: The company attributes its success to the dedication of its people and emphasizes gratitude for the team behind its 40-year journey and their first two years in Costa Rica.
- Commitment to Full-Service Excellence: Stakeholders are encouraged to see the organization as a passionate, end-to-end partner in medical device manufacturing and assembly.
EF: Rob, with your extensive career in the industry, how has the contract manufacturing industry evolved over time, and what do you believe customers value most today?
RW: I have worked in the contract manufacturing industry for 35 years. My entire career has been in this space, and it is quite different from working at a company that produces its own products. In contract manufacturing, you make products for other companies based on their designs and requirements. We help other companies build their products because Cadence is geared more toward being a service business than a product business. While the product is important, the main value lies in aligning the service we provide with what the customer needs.
One trend I have seen over time is that larger companies are looking for contract manufacturers who can offer a full suite of services. They seek partners who are fully integrated and can handle everything from start to finish, like we do at Cadence. That includes being involved early on in the design and development stage. By supporting customers earlier in the process, we can offer our expertise in manufacturing strategy and planning. This helps them design their product in a way that is easier and more efficient to produce once it is ready to go to market.
EF: What are the key success factors for building strong and effective collaborations with your customers?
RW: There are several important factors, but one of the bigger ones is the timeline. It is essential to commit to a schedule and make sure the entire product development team is aligned and ready to meet those deadlines. Customers want to launch their products according to their own plans, not based on when a contract manufacturer is ready. So, our responsibility is to match their timeline and be fully prepared.
Another key to success is strong communication. We need to have clear systems in place to ensure we are regularly updating each other, especially since project requirements often change. Customers might add or remove features or shift priorities. That makes it crucial for us to stay closely connected, discuss those changes openly, and understand how they will affect the project overall.
EF: Could you elaborate on Cadence’s global footprint and the role Costa Rica plays within the organization?
RW: Right now, at Cadence, we offer full, finished device assembly for our customers. We have FDA-registered cleanroom operations where we build these final products. Unlike many other companies that buy parts from outside suppliers, we often make many of those parts ourselves at different Cadence locations. This vertical integration means we can move components from one of our sites to another for final assembly. That is a big advantage for both us and our customers. Of course, we still purchase some parts and packaging when needed, but having this in-house capability adds a tremendous amount of value. Costa Rica is especially important here, as it is one of our two main sites for finished device assembly, the other being in Pennsylvania, in the United States. If we look back, Cadence originally started by making components, especially surgical blades and other sharp tools. That is what we became known for. But over time, we have added more advanced capabilities like deep draw stamping, metal injection molding, Swiss and multi-axis machining, and precision laser processes such as cutting and welding. We combine these advanced manufacturing skills to make complex components, which we can then bring together into larger sub-assemblies or even full, finished medical devices.
EF: Why did you choose to invest in Costa Rica, especially with other emerging countries also offering opportunities?
RW: There are several reasons why Costa Rica is important for us. First, if we look beyond Cadence and focus on the country itself, Costa Rica has a well-trained and experienced workforce. Additionally, the culture in Costa Rica is something truly special: it’s collaborative, resilient, and driven by a strong sense of community and pride in craftsmanship. That mindset translates exceptionally well into a business environment like ours, where attention to detail, quality, and teamwork are vital.
The country's strong focus and investment in the medical technology and pharmaceutical industries make it a great match for our business, which is built around those sectors. It is essential for us to have employees, managers, and leaders in our facility who understand the industry and bring real experience. That is a top priority. Another major reason is our cleanroom for finished device assembly. We already have one in the United States, which works well, but we saw a strong opportunity to place our second cleanroom in Costa Rica. We made a significant investment there, and it made perfect sense as the next step for Cadence. Even though Costa Rica is technically outside the United States, it is much closer and easier to access compared to other countries where many companies set up operations. Its proximity helps with logistics and makes collaboration more efficient. When you put it all together, the culture, the skilled workforce, the focus on MedTech, the cleanroom capability, and the location, it becomes clear why Costa Rica is a key part of our strategy.
EF: Could you elaborate on your strategy and how it positions Cadence for the future?
RW: Cadence is getting ready to celebrate its 40th anniversary in 2025, which is exciting. A few years ago, in 2022, we refreshed our company strategy to prepare for the future. This strategy is built around three main areas.
First is our focus on key customers. These are large global companies that already work with Cadence across several areas. We decided to strengthen these relationships and offer them even more of our services. We call this our strategic customer framework, and it is a major part of our growth plan. Second, we looked at the markets we are in. We have strong roots in surgical devices, especially sharps in both blades and needles, which are widely used in surgeries. That is an area where we will continue to grow. At the same time, we identified opportunities in drug delivery and diagnostics. These end markets often include sharps and other parts we already make. For example, we have expanded our efforts in ophthalmic and in continuous glucose monitoring, which is an area where we are doing incredibly well. The third part of our strategy focuses on building our capabilities. In 2022, we had five facilities. Since then, we added three more facilities, including a new site in Costa Rica. We also expanded our technologies to include deep draw stamping and metal injection molding. These additions help us move Cadence to a fully vertically integrated supplier.
Looking ahead, we would like to expand further in design and development, especially by possibly bringing in a company that specializes in that area. We also plan to grow our plastic injection molding capabilities on a larger scale. We already offer injection molding, but we want to take it further. Overall, our strategy is focused on growing with key strategic customers, expanding into new markets like drug delivery and diagnostics, and continuing to build the right capabilities to support our customers as a fully vertically integrated supplier.
EF: Could you share your leadership approach and what your message would be in a toast celebrating Cadence’s 40th anniversary?
RW: When it comes to leadership, I like to lead by sharing experience and through inquiry rather than just giving direct instructions. I bring the management team together and encourage open discussion. We have a lot of intelligent people at Cadence, and I try to use that collective knowledge to find the best solutions for the business. Instead of coming in with all the answers, I prefer to present the challenge or goal and work with the team to find the best solution.
As we get ready to celebrate our 40th anniversary, I would like to recognize everyone who helped Cadence be what it is today. Many people are still with the company, and they have played a big part in getting us to where we are today. My message would really be about recognizing all the Cadence employees who helped build a great company.
We are passionate about this work, and we are proud to be a full-service contract manufacturing company that is fully integrated. I encourage people to make the most of everything Cadence has to offer, keeping in mind how everything connects all the way through to full assembly and finished devices for the key end markets we serve.
