The most common definition of outsource manufacturing is when the manufacturing that one company needs performed is hired out to a different company that is ultimately responsible for the manufacturing. The manufacturing work is to an outside source which is where this term originates. Many companies participate in outsource manufacturing because of reduced production costs that are made possible through economies of scale which is a theory that holds that as a company grows and produces more goods or provides more services, their costs will probably decrease and economic growth will be achieved. Read More…
Hankscraft Inc. offers customers the ability to have all of their manufacturing needs in one supplier. With our extensive and expanding list of capabilities Hankscraft has the most comprehensive manufacturing capabilities available for our customers. We offer US manufacturing, China manufacturing or a combination of both utilizing low cost components while adding US assembly content.
Bihler of America Inc. is a contract manufacturer and packager. Bihler serves the electrical, medical, automotive, appliance, electronic, and military industries among others. Bihler can stamp, form, weld, tap, insert screws, and construct components and assemblies for a variety of products. Bihler satisfies customers through cost-effective and quality manufacturing services.
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...
Kalow is a leading manufacturer of industrial balers, garbage balers, scrap metal balers, baling presses, trash compactors and recycling equipment. Kalow provides quality industrial balers and products for a variety of industries and markets. Contact us for your industrial baler needs today!
BRI, an ISO 9001:2008 manufacturer, was founded in Winchester, VA in 1985 as a custom injection molder and assembler of plastic parts. We offer: custom injection molding, contract manufacturing, sonic welding, pad printing/hot stamping, plastic painting and hydrografix decoration. We have extensive success in providing customers with tooling and procurement, molding, assembly and retail packaging.
If you have a custom manufacturing challenge, ALKAB Contract Manufacturing, Inc. can help. We are a machining and fabricating job shop that produces custom machinery, equipment, tooling and individual component parts. Our capabilities include large/heavy part machining, small part machining, welding and fabricating, and electromechanical assembly. We can process prototypes, one-offs, and small...
More Outsource Manufacturing
While there are many kinds of manufacturing processes, there are also many different subcontractors willing to perform outsourced work. Whether it is milling, etching or welding, companies in North America or around the world are willing to accept the contract. Outsource manufacturing is widely used by many companies including those in need of aerospace, automotive, construction, electronics, food and beverage, marine, medical and pharmaceutical contract manufacturing.
Outsource manufacturing usually follows a standard business model. A company decides that it is going to hire an outside company to provide certain manufacturing services. It solicits job estimates from various companies in that business. Usually these companies are exclusively subcontractors that do outsourced work. They provide the hiring firm with bids based on the labor, tooling and material costs. The hiring firm then makes a selection based on what they interpret is the best service and the most cost effective.
Companies that outsource their manufacturing work have chosen not to purchase or rent their own production facility in order to take advantage of possible cost savings while avoiding the hassles and responsibilities of manufacturing themselves. The two companies discuss details such as the length of the contract, the amount paid and the specific manufacturing services to be provided and, once in agreement, sign a contract.
Other options beyond outsource manufacturing includes subcontract machining, contract assembly or manufacturing for a specific industry, such as aerospace, chemical or pharmaceutical plants. Hiring manufacturing services is also similar to working with an OEM, an original equipment manufacturer. OEMs fabricate products that are purchased by the hiring firm and sold under the branding of that same company. In both cases, the firm that is hired to do the actual work is not the same firm who designs, advertises, retails and profits from the services.