Read the Conversation
Meeting highlights:
- Long-term presence: Confluent Medical has been operating in Costa Rica since 2010 and has evolved into an E2E medical devices manufacturer.
- Strategic location: Costa Rica is a key hub for advanced manufacturing and innovation in materials, positioning the country as a long-term growth partner.
- Talent retention: Confluent achieves high retention by creating a stable and supportive work environment, with recognition and stability.
- Future outlook: The company is committed to growing in Costa Rica over the next 15 years, confident in the country's strong business and talent environment.
EF: You have a long-standing presence in Costa Rica. Could you elaborate on why Costa Rica was initially selected as a manufacturing location?
DJ: When Costa Rica was chosen as a manufacturing site in 2010, the decision was made rather quickly. The primary factors considered were low labor costs, proximity to the United States, political stability, and low crime rates. At that time, the medical device industry in Costa Rica was just beginning, and few companies had established operations here.
Since then, the industry has grown tremendously. Today, there are over 90 MedTech companies in Costa Rica, many clustered within a few miles’ radius. Our own organization has expanded to over 1,500 employees. We started with guidewire manufacturing, then moved into Nitinol components, and have since diversified into catheters, balloon forming, and other products. More significantly, we have evolved from primarily producing components to manufacturing completed, packaged, and sterile medical devices. Now, at least half of our business consists of finished devices produced here locally.
Our ability to produce PMA class III devices in a cost-competitive environment without sacrificing quality or delivery has proven to be a highly successful formula for us in Costa Rica.
EF: What are the unique strengths of Costa Rica that set it apart from other global manufacturing hubs?
DJ: Costa Rica’s strength lies in being top-ranked across every metric important to manufacturers. If you look at a classic comparison matrix—education, skilled workforce, political stability, logistics—Costa Rica consistently scores near the top.
Some specific advantages include access to not just highly qualified engineers but also a robust class of skilled technicians and machinists, which is becoming increasingly rare in markets like the United States, strong IP protection, with a business environment free from corruption..
It also has a mature logistics infrastructure, making it easy to ship products globally, and has a collaborative ecosystem among companies, suppliers, and other stakeholders, which promotes innovation and efficiency.
The presence of suppliers offering extrusion, thermoform trays, labels, packaging, sterilization, and other supporting services means we do not need to look outside the country for any essential materials. This comprehensive support is a huge asset.
EF: How does the industry’s shift from components to finished devices impact your business model and the market’s needs?
DJ: We’re seeing a clear trend where customers, especially OEM medical device manufacturers, are moving away from purchasing individual components from multiple suppliers. Instead, they increasingly seek completed, ready-to-use products from their manufacturing partners.
As a response, our business has become highly vertically integrated, enabling us to deliver tens of thousands of finished devices entirely manufactured in Costa Rica. This vertical integration allows us to meet market demands for complete solutions rather than just parts, positioning us uniquely as a strategic partner for our customers.
The industry is moving toward even greater vertical integration and demand for turnkey solutions. Customers want reliability, speed, and comprehensive services under one roof. Costa Rica’s collaborative environment and skilled workforce will continue to be key drivers of growth. Additionally, ongoing innovation in advanced materials and manufacturing techniques will ensure that the country remains competitive in the global MedTech sector.
EF: Could you describe how your global manufacturing network operates and the role of the Costa Rica facility within it?
DJ: We operate a comprehensive global network: Manufacturing facilities in India, Warwick (Rhode Island), Maine (Portland), Chattanooga (Tennessee), Orange County (California), and Fremont (California). We have a product development center in Austin, Texas specializing in catheter development.
Costa Rica serves as the hub where these diverse capabilities converge for the assembly of finished devices or components.
Our model relies on strong integration, and we ensure that facilities from various regions collaborate seamlessly. While US sites may ship components directly to customers, finished devices are often completed in Costa Rica, leveraging the site’s breadth of technologies and labor force.
EF: With such a distributed footprint, what are the challenges you face in coordinating manufacturing and distribution across plants?
DJ: Coordination across our network is inherently complex, but our experienced team and robust planning systems allow us to execute effectively. Consistent and open communication between sites is vital. The main challenges typically arise from external factors, such as global shortages or supplier disruptions, like natural disasters affecting raw material supply, which impact the industry at large. However, our system allows us to adapt quickly and continue delivering quality products on time. Most logistical or operational challenges are mitigated by our planning tools and the dedication of our teams.
EF: Could you discuss the role of digital technologies and data analytics in optimizing your operations and strategic planning?
DJ: Our most significant technological advancements have been in forecasting and planning systems. These tools help us manage operational complexity and anticipate issues well in advance—now six months out, instead of reacting to problems as they arise. The continued improvement of our execution and planning systems enables us to meet our commitments reliably and consistently. Our scenario modeling capabilities are a game-changer, allowing us to address potential disruptions before they materialize.
EF: Having worked in both consulting and hands-on operations, how has your leadership style evolved? What guiding principles do you use, especially for managing multisite and multicultural teams?
DJ: I believe that management style must change as the company grows and evolves. When working with a small team, you tend to manage it much differently than a larger operation. In a small company, you often know not only every employee’s name but also the names of their spouses and children. As the organization grows, you might reach a point where you only recognize faces or, eventually, don’t know everyone personally.
This evolution means your leadership approach must adapt accordingly. Personally, I am a strong believer in building a positive corporate culture, a culture that mirrors the closeness of a smaller team, even as the company expands. Maintaining that sense of connection, despite the scale, is fundamental.
Equally important is having a strong Vision, Mission, Values and Strategy that everyone in the organization believes in. Alignment on these items leads to better decision making and helps provide our employees with a sense of purpose and an identity, which is a large contributor to the culture.
To me, success comes when everyone is contributing to common goals and sharing responsibility for outcomes. Even if individuals have distinct objectives, helping each other ensures all goals are ultimately aligned and cascaded throughout the organization. That collective alignment, I believe, is key to lasting success.
Building this culture relies on genuine appreciation and recognition. It’s important to consistently let people know their work is valued. When an organization combines accountability with recognition and pushes that ethos down through every level, it pays off tremendously.
EF: What would be 15 years of Confluent Medical in Costa Rica?
DJ: It’s been a fantastic 15 years, and I look forward to the next 15. As far as manufacturing is concerned, we are continuing to grow in Costa Rica and will do so as long as the environment remains favorable, as it is today. I am confident that 15 years from now, you will still see Confluent Medical thriving in Costa Rica. It is a great company, a wonderful country, and a fantastic place for manufacturing.
