In this kind of transaction, the second company is referred to as the OEM, or original equipment manufacturer. Read More…
Britech IndustriesStuart, FL | 772-286-9278
Manufacturer of standard and custom rubber products. Made of EPDM, neoprene, nitrile, dense, recovery sponge rubber and silicone compounds. Secondary processes such as die cutting, notching, and glue splicing are offered. Products can be shipped in one or two days.$$$
Hankscraft, Inc.Reedsburg, WI | 608-524-4341
Since 1920, Hankscraft Inc. has been a leader in the contract manufacturing industry, producing dependable and high-quality products for all of our customers. We pride ourselves on our contributions to the industry and being industry experts. From plastics, to metals, to assembly we can manage your entire program.$$$
Maysteel Industries, LLCAllenton, WI | 262-251-1632
Maysteel provides complex sheet metal fabrication with a focus on design for manufacturing. Founded in 1936, we combine our extensive engineering experience and market knowledge with an expanding supply chain footprint, allowing us to fabricate products that others can’t. We design, engineer and manufacture custom OEM sheet metal enclosures, kiosks, cabinets and racks. We have locations in the U.S. and Mexico, as well as partnerships in Europe. For more information, visit www.maysteel.com.$$$
Talan Products Inc.Cleveland, OH | 888-327-6714
Talan Products is a leading contract manufacturing company specializing in metal stamping, aluminum extrusions, assembly & secondary operations supporting OEMs primarily in the building components, automotive & fastener industries.$$$
GSH Industries, Inc.Cleveland, OH | 440-238-3009
Our staff boasts over 100 years combined of field industry experience. We have been offering top of the line contract manufacturing services for over twenty-five years and this is something that we strive to continue long into the future. With our 45,000 square foot facility we are dedicated to manufacturing whatever you need to keep your business moving smoothly.$$$
Remaly Manufacturing Company, Inc.Tamaqua, PA | 888-218-2260
Long recognized as experts in the field of high-performance metal working, Remaly Manufacturing Company’s fabrications and assemblies are found throughout Aerospace, Energy, Defense and Aviation industries. Utilizing comprehensive forming, machining and assembly processes, Remaly Manufacturing Company is a contract manufacturing facility that delivers the best when it comes to quality. For more info, visit our website!$$$
American Urethane, Inc.Odenton, MD | 800-394-7883
When American Urethane responds to a quote, you are able to talk to one of their expert engineers who understand all your needs and concerns. This allows you to be assured that you will receive the precise product you need for you application.$$$
Petro Extrusion Technologies, Inc.Middlesex, NJ | 800-229-3338
Petro provides contract manufacturing for our customers and offers many capabilities, such as customized shapes & extruded tubing, along with tape application, coiling & angle cutting. We have a full staff of engineers who can assist you & ship out stock products within 24 hours of your order.$$$
Tyler Madison, Inc.Apple Valley, MN | 888-638-3604
Tyler Madison provides contract manufacturing for a broad range of industries. They provide companies with a full line of products that are used for powering, lifting, hanging, pulling, braking, suspending & winding of 270lbs - 14,400 lbs tension.$$$
Thuro Metal Products, Inc.Brentwood, NY | 800-238-3929
ISO 9001:2015 and AS9100D Certified contract manufacturer of custom machined precision component parts. Our expertise is in the utilization of CNC controlled turning and milling machines as well as multi-spindle, single spindle, and Swiss screw machines. Industries w$$$
Contract manufacturers are often used when an original equipment manufacturer (OEM) needs assistance with their manufacturing process. This is a practice often called outsource manufacturing. Outsourcing can be beneficial for both companies involved. The outsourced firm can be a company in the same country as the OEM, but often times it is a foreign company. Sometimes the OEM is not a manufacturing company or does not physically make the product being outsourced.
By purchasing the product from contract manufacturers, the OEM saves money on engineering, infrastructure and assembly costs. In recent years, the global economy has seen more and more OEMs looking to foreign contract manufacturers to manufacture their products. Although many people think of outsourcing as the process of buying products from a company outside of the country, contract manufacturing actually includes any transaction where an OEM has its product manufactured by another company.
Companies in the aerospace, computer, telecommunication, energy, automotive, medical, military and electronic industries utilize contract manufacturing to produce devices that are needed on a daily basis. A few types of contract manufacturing are CNC machining, precision machining, complex assembly, grinding and aluminum die casting.
Contract manufacturing is many benefits. The amount of money saved is tremendous because the hiring company does not need to pay for a facility or the equipment. They also are not in charge of training, managing and paying a labor force. Many companies look to less developed countries for their inexpensive labor costs.
Another benefit is the contract, often lasting between three and five years. This guarantees steady work and revenue for the hired company. Contract manufacturers have many specialized skills that the hiring company does not possess and are likely to already have business relationships with suppliers, production efficiencies that include quality control and quality assurance processes. The final benefit of contract manufacturing is the ability of both companies to focus on their core competencies.
Contract manufacturing has its disadvantages as well. As soon as the OEM signs the contract it loses control over the manufacturing and quality of the product. This is why it is important to have a good relationship with the other company in the contract. Another disadvantage is the potential of losing your intellectual property because you are allowing others to see your formulas and technologies. Another risk of outsourcing, especially to foreign manufacturers, is the difference of time, language and cultures as well as long lead times.