Building a Tariff Response Plan for Orthopedic OEMs

Navigate Uncertainty with Independently Strong U.S. & Europe Supply Chains

By Ben Hutson, Chief Operations Officer
Building a Tariff Response Plan for Orthopedic OEMs

Over the course of my career, I’ve had the opportunity to sit on both sides of the table.  First, at orthopedic OEMs, and now at Orchid as a contract manufacturer.    I have seen first-hand how global supply chains can drive innovation, but also how quickly they become liabilities when raw materials are delayed or policies shift.  It’s not just uncertainty - it’s product disruption, damaged relationships, and lost competitive edge.        

That’s why the current tariff discussion isn’t just policy news, it’s a strategic inflection point for our industry.

At Orchid, our manufacturing footprint puts us in the unique position to meet the needs of the industry. Throughout our history, we have a track record of partnering with OEMs in navigating crises, market shifts, and unexpected obstacles. We understand how important control, flexibility, and geographic redundancy are to maintaining reliable supply and long-term growth.

And that work is now more relevant than ever. Here are some things we think OEMs should know about and consider.

 

What the Tariff Environment Looks Like Now

Much of the recent attention has centered around the tariffs on imports into the U.S and reciprocal tariffs from other regions.  Unlike the tariffs enacted in 2019 in response to COVID-19, medical devices are not exempt. Exclusions may apply to certain materials, but no one has a crystal ball.

Policies evolve, impacted categories expand, and by the time it’s official, it’s often too late to respond without disruption.

That’s why, in addition to offering full supply chain solutions on two continents (U.S. and Europe), we have also built a proactive sourcing strategy. We monitor the regulatory environment and work closely with suppliers to secure stable access to precious metals and key materials, such as, but not limited to: titanium, cobalt chrome, stainless steel, and plastics. We also prioritize U.S.-based sources when possible, especially for materials most likely to be impacted by changing trade policies.

The goal is simple: to protect our customers from unnecessary cost, delay, or risk.

 

Things OEMs Should Be Thinking About

If you’re wondering how tariffs will impact your business, here are a few questions worth asking:

  • Are you relying on materials that could be hit by tariffs or supply chain disruptions?
  • Can your U.S. or European operations serve their local markets independently?
  • Do you have true geographic redundancy, or are you one disruption away from a crisis?
  • Do you have U.S. manufacturing capacity available to support critical product lines?
  • How long would it take to transition part of your supply to the U.S. or Europe if needed?
  • Do you have time to react—or is it time to act?

Acting now, before you're forced to, gives you options.

 

What Happens When You “Do Nothing”

Sometimes uncertainty can paralyze us. When we don’t truly know the impacts, or what could change, we are hesitant to make big moves. But doing nothing can be dangerous, too.

The key is to find the balance between doing nothing and doing too much to build risk mitigation into your business.

Over the years, I have experienced the immediate ramp up of critical hospital supplies to support the Gulf War, organized crime organizations taking control of a manufacturing facility in a foreign land, a multitude of critical shortages of raw materials and COVID caused an uncountable number of supply disruptions (e.g. none of us will ever forget the number of freight containers from Asia that were backed up and awaiting unloading at the port of Long Beach).  

Being proactive doesn’t mean overhauling everything overnight—it means identifying your exposure, building optionality into your plans, and making small moves now to avoid major disruptions later.

 

Orchid’s Tariff-Ready Strategies

  • U.S. and European Supply Chains—Fully Independent, Fully Capable:
    Companies that serve global markets need global strategies, but local execution. At Orchid, we’ve invested in both a full U.S. supply chain and a full European supply chain. Each region can operate independently, with all the capabilities needed to take a product from raw material through finished, sterile-ready device.
  • Industrialized Additive to Strengthen Your U.S. Footprint:
    Even before tariffs raised concerns, we were scaling additive manufacturing to help OEMs localize and streamline production. Now, the value is even greater. We’ve industrialized Electron Beam Manufacturing (EBM) of titanium for implants like femoral components, tibial baseplates, shoulders, and trauma devices, and launched binder jet printing for stainless steel instruments. Additive has moved from niche to viable at scale—lower costs, fewer steps, and new design freedom. This isn’t a future vision, it’s already happening.
  • Launch With Confidence, Wherever You Build:
    New product introductions are high-stakes. Our structured phase gate process helps manage risk, align teams, and hit critical milestones. Whether validating an additive design or transferring production from overseas, Orchid brings the project management, resources, and experience to ensure success.

 

A Final Thought

For OEMs looking to take control, reduce risk, and plan for long-term success, localized manufacturing matters more than ever.

Orchid offers full U.S. and full European supply chains, each capable of independently delivering finished devices and instruments. Whether you’re building redundancy, reshoring production, or launching something new—we’re ready to collaborate.

And for us, it’s about more than just policy changes. We thrive on true collaborative relationships with our OEM partners to meet the same end goal—to provide reliable, innovative solutions to orthopedic patients across the globe. We can work together to ensure that your sourcing strategy enables your business’ purpose to advance healthcare.

Let’s start the conversation now, before the next policy shift forces it.

Ben Hutson
Please login or register to post comments.