Insights Archive

A message from our President and CEO, Jon Desalvo.

As 2025 comes to a close, we are thrilled to reflect on a year of significant progress and dedication at Arcamed. Our mission for the year was to set the benchmark for what it means to be an Elite Contract Manufacturer, a goal we aggressively pursued across three key areas: Operational Excellence, Technology, and Community Partnership.

Operational Excellence: A Commitment to Quality and Transparency

Our customers rely on us to deliver quality products on time, every time. This year, we reinforced our commitment to this promise by focusing on measuring what truly matters and holding ourselves accountable. We have set exceptionally high internal standards to ensure your complete satisfaction. To demonstrate our unwavering commitment to transparency, we are proud to announce the launch of a new public scorecard on our website, where you can see our performance in all key areas. While we don't claim to be perfect, we take full responsibility and implement corrective actions immediately to prevent recurrence, ensuring continuous improvement.

Technology: Innovating for the Future of Contract Manufacturing

Arcamed is dedicated to staying at the forefront of technological advancements to enhance efficiency and productivity. This year, we made great strides in utilizing AI for programming and capacity planning. Our commitment to American-made manufacturing was recognized with visits from state and federal leaders, including Governor Mike Braun and SBA Administrator Kelly Loeffler. We were also honored to receive the statewide MIRA award for Manufacturing Innovation. Looking forward, we have developed a three-year blueprint that includes a strategic investment of over $5 million to support our customers and their continued growth with Arcamed.

Community Partnership: Building a Stronger Indianapolis

Our company culture is deeply rooted in giving back to the community. This past year, our dedicated associates volunteered over 800 hours with more than a dozen organizations, contributing to philanthropic work throughout Indianapolis. We are also proud to be active members of key programs like MAP (Modern Apprentice Program), INCAP (Indiana Career Apprentice Pathways), and Purdue MEP (Manufacturing Extension Partnership). By actively participating in youth education at both the high school and college levels, we are committed to helping develop and ensure the success of the next generation of manufacturing leaders.

Setting The Standard You Deserve

With the progress and accomplishments of 2025, we are better positioned than ever to be a true extension of your team. Arcamed will continue to strategically scale to meet or exceed the needs of our customers and set the standard you deserve. We look forward to our partnership.

To learn more about Arcamed or schedule a tour, contact Jon directly at jdesalvo@arcamed.com

In the fast-paced world of medical device development, time is a critical factor. Efficient collaboration between engineering and product teams is essential to bringing innovative solutions to market. Arcamed Engineering, a leader in its field, partnered with an OEM’s Engineering team to explore a new model of collaboration: the focused, 1-day onsite engineering development meeting. The results demonstrated a transformative approach to the traditional development processes, highlighting significant improvements in communication, efficiency, and partnership building.

The Challenge of Digital Disconnect

Traditional remote collaboration, while convenient, often introduces delays and confusion, particularly for complex, tactile products like surgical instruments and implant trays and caddies. A single design update could lead to a week of back-and-forth emails, CAD file reviews, and scheduled video calls. Critical context—such as surgical process order or subtle fit-and-function issues—could easily be lost in translation. This digital divide creates challenging bottlenecks that hinder progress and strain relationships.

The Solution: A Day of Focused, In-Person Collaboration

Arcamed’s solution was a targeted, in-person meeting. Instead of a series of fragmented digital interactions, all key decision-makers from both Arcamed and its OEM partner were brought together for a single day. This strategic gathering was designed to:

• Accelerate Prototype Feedback: With physical prototypes, instruments, and implants in hand, teams could immediately test and provide feedback. A CAD file, once a static representation, came to life as engineers and product developers could physically touch, remove, and add instruments to the trays and caddies. This hands-on approach revealed previously hidden issues like loose or misaligned components.
• Eliminate Miscommunication: The face-to-face setting provided an immediate and clear channel, cutting through the confusion of digital collaboration. A Senior Product Development Engineer at the OEM emphasized the format was a “huge success, giving us both insight into each other’s processes and allowing us to communicate what was truly important.” This clarity ensures both teams understand the core design rationale, testing processes, and specific preferences, all in the shortest amount of time.
• Streamline Design Updates: The ability to make on-the-spot decisions and show design rationale and testing processes in person shaved approximately one week off the traditional collaboration timeline. This removed additional delays in the project timeline that are typically incurred due to design updates. Ashley Ray, Project Manager, emphasized the direct impact on the project schedule:

“As a project manager, one of the most significant benefits of our onsite meetings is the incredible time savings. Streamlining design updates in a single day, rather than over a week or more of back-and-forth communication, directly impacts project timelines. This allows our engineers to focus on what they do best: developing and refining the product, ultimately getting our clients to market faster.”

• Strengthen Partnership: Beyond the technical benefits, the meeting fostered a deeper human connection. Taking technology out of the equation allowed individuals to “put a face with a name,” building a level of confidence and trust that is crucial for a long-lasting partnership. Justin Brown, Engineering Manager, highlighted the trust-building aspect:

“Our onsite meeting with the OEM’s Engineering team was a game-changer. Beyond the obvious benefits of reduced timelines and streamlined feedback, this meeting was instrumental in building a stronger partnership mentality. The ability to sit down together, with physical prototypes in hand, builds a level of trust and confidence that digital communication simply can’t replicate, ensuring we’re fully aligned and committed to delivering the best possible product.”

A Partner’s Endorsement

From the OEM’s perspective, the trial was a resounding success. A Product Development Engineer at the OEM stated that the meeting gave them “insight into each other’s processes and allowed us to communicate what was truly important.” The ability to test-fit the implants into their caddies and show which openings needed updating with “practical physical rationale” was invaluable. The OEM’s team hopes to continue this format to “strengthen our partnership and get the best product in the quickest timeline.”

Key Outcomes

The 1-day onsite engineering meeting model offers a powerful framework for future collaborations. The approach delivered several key benefits:

• Speed: Reduced design feedback cycles and streamlined decision-making.
• Clarity: Eliminated miscommunication and allowed for hands-on, real-time testing.
• Confidence: Built stronger partnerships and demonstrated the expertise of both Arcamed and the OEMs team.
• Efficiency: Provided a comprehensive review of instruments, implants, trays, caddies, and processes in the shortest amount of time possible.

This collaborative model proved that when it comes to complex engineering challenges, proximity can be the most efficient tool for driving innovation and building lasting success.

In an industry where quality, customer service, and reliability are non-negotiable, the “business as usual” model of private equity—often driven by short-term financial targets and a predetermined exit timeline—can create significant vulnerabilities. This case study examines how Arcamed, a leader in medical device manufacturing, leverages a unique investment partnership with Heron Capital, a Patient Capital firm with no exit clock, to build long-term value and create a durable competitive advantage, defying the conventional wisdom of the private equity landscape.

The Challenge: Escaping the Short-Term Trap

Heron Capital’s partnership with Arcamed offers a distinct advantage over traditional private equity models. Unlike firms whose decisions are driven by their fund’s life cycle, Heron’s Patient Capital approach focuses on long-term growth. This provides Arcamed with the stability to invest in innovation and expand operations without the pressure of optimizing short-term margins (that dictate the sale price a private equity firm gets upon exit). Heron’s commitment to the company’s future helps strengthen its market position and avoid the typical pitfalls of a short-term investment strategy.

The Pitfalls of Short-Term Private Equity

Traditional private equity’s focus on a pre-determined exit landscape and short-term margin enhancement often leads to a cycle of decisions that do not prioritize the long-term health of the customer relationships. These include:

• Cost-Cutting over Capacity Building: Investments in essential areas like technology, intelligent scheduling, advanced robotics, sophisticated automation, artificial intelligence, workforce development, and most other higher-priced and longer ROI investments are often deferred in favor of

immediate cost reductions and a short-term margin lift.

• A Retreat in Downturns: Economic volatility can lead to private equity-owned layoffs and facility closures, sacrificing long-term capabilities for short-term financial stability and cash retention.

• An Expendable Culture: Employee morale and talent retention are often deprioritized by private equity as companies are measured on quarterly financial targets.

This model, while profitable for some, is fundamentally misaligned with the demands of the medical device industry. In this sector, validated processes, employee expertise, and a resilient supply chain are critical to ensuring that the OEM can expand timely and with integrity.

The Solution: A Partner with Patient Capital

Heron Capital’s investment in Arcamed was not a private equity investment. Instead, Heron facilitated the Patient Capital investment from its partners. In other words, business executives with deep expertise, acumen, and experience invested their own money to start and grow a

fantastic company for the long term. The founding of Arcamed was not just a financial transaction; it is the start of a paradigm shift. Heron operates on a philosophy of “capital with no exit clock.” In fact, Heron prefers to buy and hold. This is “The Heron Way.”

This new model is built on three core pillars:

1.Generational Growth Focus: Instead of cost-cutting, Heron facilitates the provision of capital to execute on a thoughtful growth strategy focused on long term success. This includes expanding capacity, upgrading technology, and doubling down on key investments even during economic downturns, such as in 2024. Because there is no exit timeline, decisions are made with decades—not quarters—in mind.

2.Hands-On Partnership: Heron Capital works directly with Arcamed’s management, acting as a true partner. This collaboration focuses on solving complex problems, securing critical resources, and implementing a clear, long-term strategic plan to build enduring capabilities.

3.Culture as a Competitive Advantage: A key difference is Heron’s belief that a strong culture is a source of competitive advantage. Arcamed’s leaders feel empowered to build a workplace where talented people want to stay and grow, leading to higher morale, lower turnover, and a dedicated, productive workforce focused on exceeding the expectations of Arcamed’s customers.

The Results: A Resilient, Enduring Business

The results of this partnership prove that “The Heron Way” is not just a philosophy—it’s a superior business model.

This philosophy is the opposite of “business as usual” in private equity. By providing Patient Capital that prioritizes long-term strategic thinking, customer relationships, and employee culture over this quarter’s margins, Arcamed has not only secured its future but also established a new standard for excellence in the medical manufacturing industry. Arcamed’s customers can take great confidence in the assurance that Arcamed will be a reliable partner for years – in fact decades – to come.

PATIENT CAPITAL AND A HANDS-ON APPROACH HAS ESTABLISHED A NEW STANDARD

"Arcamed has consistently gone above and beyond to support us. Their responsiveness and willingness to adapt to our needs make them one of our most valued supplier partners." - Senior Product Manager

A leading medical device company has trusted Arcamed to enhance its supply chain by providing high-quality, precision-engineered sterilization cases and trays. This company depends on the efficiency and reliability of its suppliers. Strong partnerships are critical to it’s success. Arcamed’s dedication to customer service, rapid response times, Industry-leading lead times, and proactive problem-solving has cemented its role as a top-tier partner.

The partnership has evolved significantly over the years, with Arcamed continuously demonstrating its ability to scale alongside its customers. “They’ve made us a priority, and the customer service has been outstanding. Whenever we’ve had an issue, they’ve responded immediately, often visiting us in person to problem-solve,” shared a Director of Product Management.

Perhaps what is most unique about the Arcamed team is their mindset. While many suppliers resist change, Arcamed actively seeks feedback and pursues continuous improvement. Their team listens, adapts, and evolves based on what the customer needs—not just once, but repeatedly over time.  It is this approach that has helped them grow in step with this OEM and solidified their role not just as a manufacturer but as a strategic partner. “They’ve taken the time to understand our challenges and work with us to overcome them. That’s what sets them apart.”

Arcamed has enhanced its responsiveness while also streamlining lead times and refining pricing structures, delivering not only high- quality products but also dependable, efficient service to its customers. Arcamed’s approach to supplier relationships is built on transparency, open communication, and a commitment to continuous improvement.

“You can see it in how they show up, how quickly they respond, and how much they care about getting it right. They’re not just a supplier. They’re part of our team,” said the Senior Product Manager. By prioritizing flexibility and trust, Arcamed continues to exceed expectations, proving that true supplier partnerships are built on more than just transactions—they’re built on mutual success.