The model for today’s manufacturers is lean and efficient. Saving money while producing a quality product is important. One way of accomplishing this is to outsource components and other structures. Contract manufacturers perform this service for OMEs and other industries.
Why Contract Out Work?
Contracting-out work involves forming a partnership with others including fabrication shops. While this may take away many aspects of production control from the manufacturing firm, it also provides some benefits. By hiring a contract manufacturer (CM), the company saves time and money. It:
- Allows companies to focus on the overall product line
- Reduces the need to hired specialized labor
- Eliminates the continually updating of specific equipment and retraining staff to operate it
- Removes the need for larger premises to accommodate the equipment
Overall, the goal behind hiring contract manufacturers is to reduce overhead and streamline production. At the same time, by using the services of a CM, a manufacturing firm can increase their productivity and even expand into a related field previously considered untenable and, worst still, unprofitable.
Industries
The reliance on contract manufacturing for providing a variety of services – including component production and the creation of functional prototypes – is an integrated part of many industries. Among those who choose to employ such services are the following manufacturing concerns:
- Aerospace
- Agricultural
- Automotive
- Computer
- Defense
- Energy
- Food and Beverage
- Medical
- Packaging
- Personal Care
- Pharmaceutical
- Semiconductor
Those contracted to produce the workpieces offer both custom and standard services. These include everything from CNC machining to grinding to welding. A CM may forge, die casting, punching and stamping as well as complex assembly.
Contract Manufacturers
Contract manufacturers and industries today work together to produce goods for consumers. In order for the process to be successful, the goals must match. Each party must understand that to be successful contract manufacturing must be a partnership in which mutual respect and adherence to precision and details are paramount.
