DRFREEZONES - Why Medical Device Manufacturers Are Looking Beyond China: Dominican Republic Delivers 16% Total-Cost Advantage

Updated analysis presented by Alexander Schad finds nearshoring savings hold even under new tariffs, as the country advances regulatory recognition plans and expands its MedTech export base

SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)--DRFREEZONES (DRFZ), an initiative of the National Free Zones Council of the Dominican Republic (CNZFE), will present at The MedTech Conference in Boston new evidence that the Dominican Republic offers a 16.0% total-cost advantage over China for medical devices supplied to the United States, even after accounting for an additional 12.5% U.S. tariff. A delegation of Dominican government officials and more than 30 private-sector representatives will attend the AdvaMed event October 18–21, 2026, where DRFREEZONES will exhibit at Booth 423.

The findings were presented at the September 17 webinar “The Dominican Republic Solution: U.S.–Dominican Republic MedTech Supply Chain Collaboration,” hosted by DRFREEZONES with AdvaMed. The session featured Alexander Schad, Ph.D., President of INPLOG and President of Schad Logistics, and AdvaMed Vice President Steven Bipes, who served as moderator. For a modeled program of 5.25 million units a year, total cost falls to US$23.33 per unit from the Dominican Republic against US$27.76 from China once tariffs, inventory, quality management and supply-chain risk are included. The US$4.43 per-unit advantage is worth approximately US$23.3 million annually, even though the Dominican price at the port is 3.2% higher. Transit time of 12.5 days versus roughly 50 days from Asia also releases about US$10.8 million in working capital.

“Even if tariffs went to zero across the globe, there would still be advantages in the Dominican supply chain in lead time, in less inventory carried, and in the working capital that gets released,” said Dr. Schad. “That is the part of the case that survives any tariff regime.”

“Tariffs make the decision urgent. Proximity is what makes the advantage enduring,” said Johannes Kelner, Executive Director of CNZFE, who hosted the webinar. “With 42 medical-device companies and 33,525 direct jobs already here, we want the Dominican Republic to be a serious answer to where the next production line should go.”

“The Dominican Republic ranks very high in providing visibility, transparency and predictability in where medical technology comes from, and that factors directly into the decisions our member companies make on site selection,” said Bipes.

Medical-device exports reached US$2.89 billion in 2025, a 93.1% increase since 2016. Forty-two companies operate in the country, including seven of the world’s ten largest manufacturers, supporting 34,075 direct jobs as of July 2026 under ISO 13485 quality systems and FDA-approved Class III device handling. Regulatory modernization is advancing in parallel. According to Marcos Balaguer Jerez, Director General of the General Directorate of Medicines, Food and Health Products (DIGEMAPS), the Dominican government has submitted to Congress a bill that would establish DIGEMAPS as a decentralized and autonomous entity, supporting a comprehensive transformation of the regulatory agency. Balaguer Jerez added that the Dominican Republic has been an observer member of the International Medical Device Regulators Forum since 2025, and that DIGEMAPS is working on a regulatory recognition decree for authorizations granted by the FDA and certifications issued under MDSAP.

On Sunday, October 18, Johannes Kelner, Executive Director of CNZFE, will present “Doing Business Globally: Why Global MedTech Leaders Are Choosing the Dominican Republic” from 4:40 to 5:00 p.m. in Meeting Level 1, Room 157C, at the Thomas M. Menino Convention & Exhibition Center.

“What we want to show in Boston is more than a single good year: it is a consistent trajectory built by manufacturers that keep choosing to expand in the Dominican Republic,” said Kelner. “For a MedTech company evaluating its next location, those decisions speak for themselves.”

To request meetings or RSVP, contact [e-mail] or [phone]. Key conclusions from the webinar are available at drfreezones.com/the-dominican-republic-solution-beyond-factory-cost.

About DRFREEZONES

DRFREEZONES (DRFZ) is an initiative of the National Free Zones Council of the Dominican Republic (CNZFE) created to present the country’s free-zone value proposition, investment opportunities and sector intelligence to international audiences. Learn more at DRFREEZONES.COM.