Businesses today face tough competition. In addition to keeping up with technological advancements and improvements, businesses must bring new products to market faster. Organizations wishing to remain competitive need to continuously locate ways to reduce costs and production time. Businesses often find this extremely difficult, especially during periods of economic downturn.
Outsourcing enables businesses to produce products faster and at a lower price than possible with in-house production. Utilizing the help of an experienced contract manufacturer provides access to the people, equipment, and technology needed to produce a wide range of products. These individuals often have years of experience and know how to produce high quality products quickly and efficiently.
What is Contract Manufacturing?
Contract manufacturing is a form of outsourcing between a manufacturing firm and a hiring company. The hiring company contracts with the manufacturing firm to produce parts and/or complete products. Depending on the needs of the hiring company, contract manufacturers might handle many different parts of product development and production including:
- Product Design
- Prototyping
- CNC Machining
- Tooling
- Production
Benefits of Contract Manufacturing
In addition to improved quality and reduced time to market, contract manufacturing services eliminate many of the costs associated with in-house production. Hiring a CM reduces the amount of capital spent on the maintenance and operating costs of equipment and machinery. It also reduces the costs associated with hiring, salaries, wages, HR, and benefits.
Perhaps the greatest benefit of outsourcing is that it provides the hiring company with access to the people, equipment, and technology needed to ensure the production of high-quality parts and products.
What Types of Businesses Hire Contract Manufacturers?
Although most people assume only large companies hire contract manufacturers, nothing could be further from the truth. Many entrepreneurs and start-ups utilize contract manufacturing to bring new products to market.
Larger companies utilize contract manufacturing to fulfill periods of high demand and to test out new markets. Hiring a CM allows organizations to discover the profitability of new products, without having to invest the time and money into producing new products in house.
California Contract Manufacturer
Means Engineering offers contract manufacturing services to businesses across a wide range of industries. Our services reduce costs and time to market. Our team understands the unique challenges faced by organizations today. We work directly with each of our clients to ensure a mutually beneficial and long lasting relationship.
Please contact us for more information about our contract manufacturing services.
