Inside Orbit One — April 2022

The Swedish medical technology company Airsonett has chosen contract manufacturer Orbit One as its partner for parts of its production. Airsonett develops and markets medical devices used for treatment of patients with severe allergic asthma and eczema. Airsonett’s TLA treatment creates a breathing zone for the patient during the night that is 99.5% clean of particles and allergens, thus allowing the patient’s airways and immune system to rest and recover. The treatment is prescribed by specialist physicians and is subsidised by the healthcare system. Orbit One has now been assigned the task of producing the new generation Airsonett Air5.

Airsonett chooses Orbit One

“We chose Orbit One on the basis of their experience and certi­fi­cation in medical technology.”

The Swedish medical technology company Airsonett has chosen contract manufacturer Orbit One as its partner for parts of its production. Airsonett develops and markets medical devices used for treatment of patients with severe allergic asthma and eczema. Airsonett’s TLA treatment creates a breathing zone for the patient during the night that is 99.5% clean of particles and allergens, thus allowing the patient’s airways and immune system to rest and recover. The treatment is prescribed by speci­alist physi­cians and is subsi­dised by the healt­hcare system. Orbit One has now been assigned the task of producing the new generation Airsonett Air5.

Orbit One is respon­sible for the entire value chain

“We are delighted to welcome Airsonett as a new Orbit One customer. It is an innovative and exciting company that is also a leader in its niche. The manufacturing will take place in Ronneby, and Orbit One will be respon­sible for the entire value chain, from purchase of compo­nents to production”, says Mats Eriksson, Director Sales & Marketing at Orbit One.

Greater volumes require greater capacity

“We chose Orbit One on the basis of their experience and certi­fi­cation in medical technology and the fact that they have the right mix of customers and volume as well as a dedicated and cost-effective approach, something we have already seen evidence of. We currently have our own production of our existing product Air4, and we will continue to produce this product ourselves.

However, we expect the new generation Air5 to be produced in signi­fi­cantly larger volumes, and we do not wish to invest in expanded production capacity. Airsonett will instead focus on marketing and product innovation,” says Anders Due-Boje, CEO of Airsonett AB.

Continued price increases and longer lead times

The situation in the component market remains very strained. Now, Russia’s invasion of Ukraine also affects the market.

“This has not alleviated the pressure off the market and we are now seeing continued price increases and longer lead times despite the fact that manufacturers are working hard to expand their capacity. However, we will not see the effect of this until 2023,” says Orbit One’s Chief Supply Chain Officer, Marcus Gunnebrant.

Long-term forecasts key

“As we have told you in previous issues of Inside, it is extremely important for our customers to be able to give us as long-term forecasts of their need for compo­nents as possible. Our advice to all our customers is thus to review their needs as carefully as possible ‚and neither undere­stimate nor overe­stimate their purchasing needs. We prefer to see estimates of at least 18 to 24 (max) months in the future.”

The price increases continue

“The price increases continue, with three main driving forces: price rises of raw materials, transport and production capacity. Price increases have been around 20% recently and it is difficult to guess when the situation will stabilise, especially in view of the new uncer­tainties created by the war in Ukraine.

Topical at the moment:

• Russia’s invasion of Ukraine is delaying transport flows by train from China via Russia.

• Air or sea transport is prefe­rable, but even here the lead times are long and price increases continue.

• COVID-19 continues to affect the industry. Most recently, it was the component hub Shenzhen in China that was affected and manufacturers had to shut down, which resulted in delayed deliveries.

Would you like to know more about the component situation?

Contact our Chief Supply Chain Officer, Marcus Gunnebrant, for the latest news and develop­ments.
You can reach him at +46 (0)70965 21 38 or e‑mail him at: marcus.gunnebrant@orbitone.se

Orbit One and its staff support UNICEF in Ukraine

In response to the humani­tarian catastrophe that is now unfolding in Ukraine after Russia’s invasion, Orbit One’s staff have raised money for UNICEF. Orbit One has then doubled this amount, which has in turn been doubled by the Akelius Foundation.

You can also help! The situation of the children in Ukraine is one of urgency and UNICEF is now on site and fighting to save lives. Your help is needed now!

Follow the link to UNICEF and easily make a contri­bution.

www.unicef.se/

Invitation! Evertiq Expo in Malmö, 4 May

On 4 May it is time for Evertiq Expo in Malmö. Orbit One is in place and we hope to see you there to tell you more about modern, sustai­nable and cost-effective contract manufacturing. Evertiq Expo also offers many exciting seminars. Registration is free. Welcome!

Where: Malmö Arena
When: 4 May
Opening hours: 9 am to 4 pm

You will find Orbit One at table no. 31

Registration: Link

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