• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » How Auto, Medical Manufacturers Came Together for the Ventilator Crisis
ANALYSIS

How Auto, Medical Manufacturers Came Together for the Ventilator Crisis

February 1, 2021
Michael Hasler, SCB Contributor and Rose Hernandez, SCB Contributor

Despite ramped up production, U.S. medical equipment manufacturers weren’t able to keep up with soaring demand for ventilators in the early wave of the COVID-19 pandemic. To make matters worse, many countries closed their borders, which hurt the flow of supply to those that needed it the most. In hopes to slow demand, ventilators became reserved for patients deemed the most critical, and tended to be allocated to younger patients first. 

Several large manufacturers were recruited to produce ventilators as a way to address the crisis in supply. These manufacturers, who previously never made ventilators, became new players in the industry. In April, the Department of Health and Human Services created a contract for $336 million with General Electric Co., in partnership with Ford Motor Co., under President Donald Trump’s Defense Production Act to create 50,000 ventilators by July. General Motors Co. also received a contract for $484.4 million to produce 30,000 ventilators by the end of August.

GM’s contract created a partnership with Ventec Life Systems Inc. through StopTheSpread.org, a private sector non-profit looking for ways to contain the pandemic. When the project began, automotive plants were closed because of the pandemic. GM leveraged their idle global supply chain to source new partners and support the drastic increase in production of ventilators. Their traditional auto suppliers were able to produce all 700+ components of the ventilators in less than two weeks’ notice. 

In this same time frame, GM retrofitted a vacant production building in Kokomo, Indiana, to regulatory standards for the manufacture of Ventec’s VOCSN ventilator that combines five critical care machines into one small product. GM was able to use its knowledge in automotive manufacturing to increase Ventec’s production from approximately two units per hour to 20 units per hour. 

Once the mass production of all 30,000 ventilators was completed, GM turned the facility over to Ventec to continue their own production. This gave Ventec the opportunity to hire new employees in the city of Kokomo and surrounding areas. Unfortunately, as of late last year, Ventec announced that it was closing its plant in Kokomo as the market in ventilators only required its manufacturing location in Washington state. 

Outlook

The pandemic has uncovered weaknesses in the U.S. healthcare supply chain, and it’s time for us to reevaluate supply lines across industries.

Michael Hasler is senior lecturer, and Rose Hernandez is a research assistant, at The University of Texas McCombs School of Business.

    RELATED CONTENT

    RELATED VIDEOS

    Automotive Healthcare Pharmaceutical/Biotech
    • Related Directories

      Tecsys, Inc.

    Michael Hasler, SCB Contributor

    More from this author
    Rose Hernandez, SCB Contributor

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • AN ARRAY OF MEDICAL DEVICES LAID OUT ON A GREEN BACKGROUND

      Why the Medical-Device Industry Is Embracing Contract Manufacturing

      Sourcing/Procurement/SRM
    • A TOY TRUCK CARRIES A GIANT BOX WITH A RED RIBBON IN A BOW

      Three Trends to Watch During Peak Season 2023

      Apparel
    • A MANUFACTURING PLANT AT DUSK OR DAWN REFLECTED IN WATER

      Uncertainty is the New Normal

      Data Management (Big Data/IoT/Blockchain)
    • On Demand Webinar_SAP.png

      Optimize your Logistics Pinch Points to Build a Risk Resilient & Sustainable Supply Chain

      Webinars
    • A GIANT CONTAINER VESSEL SPORTING THE LETTERING OF YANG MING PLIES THE SEAS

      Yang Ming Accused of Profiteering During Pandemic by Bed Bath & Beyond

      Ocean Transportation

    Digital Edition

    Scb august 2023 lg

    2023 100 Great Supply Chain Partners

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl AutoStore
    BEUMER Group Blue Ridge Global Brother
    CHEP Cleo Coenterprise
    Data Capture E2open Enveyo
    Eva Air ForwardX Robotics Frayt
    GAINSystems Generix Geodis
    GEP Global Supply Chain Marketing Summit GreyOrange
    Here Holman Logistics Infor
    Inmar Kinaxis Lexis Nexis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap SPS Commerce Tecsys
    TGW Systems Thomson Reuters Veho
    Verusen Walmart Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing