In this kind of transaction, the second company is referred to as the OEM, or original equipment manufacturer. Read More…
Coghlin Companies provides time to market services to a diversified group of capital equipment innovators and device manufacturers through its two wholly owned subsidiaries, Columbia Tech and Cogmedix. Columbia Tech provides product development, manufacturing, global fulfillment, and aftermarket services to a broad range of OEMs. Cogmedix is an ISO 13485 certified engineering and manufacturing...

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 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...

Automated manufacturing at Automated Assembly Corporation is a way of life here. Our automated processes include contract manufacturing taken from rapid prototyping to production with the latest in technology. Our specialty is in the flex circuits, box builds, RFID tags and other electronic products.

Solidify Manufacturing has become a premier leader in the contract manufacturing industry through our hard work and dedication. We are committed to providing our customers with unbeatable service, high-quality products, and competitive prices.

At AccraFab, some of our many capabilities include contract manufacturing, rapid prototyping, contract assembly and finishing. Our skilled machine operators can laser cut, punch, stamp, weld, form, assemble and package all the various types of metals we use: stainless steel, copper, aluminum and more.

More Contract Manufacturing Companies
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.