Four Benefits of Contract Manufacturing

 

Are you tired of high equipment prices and overhead costs? Maybe it’s time for your automotive, aerospace, or defense company to explore contract manufacturing for your high and low volume productions.

 

What is Contract Manufacturing?

 

Contract manufacturing companies fabricate products based on the client’s design and guidelines. The completed part or product is then labeled under the customer’s branding. It eliminates the need to acquire expensive equipment and provides many other benefits, including saving time and frustrations.

 

Why Should You Invest in Contract Manufacturing?

 

The contract manufacturing market is expected to reach $281.6 billion by 2026. Keep reading to learn four benefits your company will enjoy by outsourcing a portion, or all, of your production process.

 

1.     Lower Costs

      Overall production costs will decrease. Without the expense of paying for a facility, specialized equipment, and the labor to run the machines, you’ll see your bottom line grow. Also, the budget will be a lot more controllable since you’ll know the pricing in advance.

 

2.     Decrease Mistakes 

Manufacturing is complex, and when you’re creating a new part, you may overlook flaws that can lead to issues in the future. Working with specialists who can identify design weaknesses and regulatory risks is invaluable as an OEM or Tier 1 supplier.


Contract manufacturing companies can provide recommendations on everything from packaging to materials to improve the quality of your part or product. When you’re unfamiliar with the manufacturing process, having an expert on your side is essential.


 

3.      Simplify Low Volume Productions


Enlisting staff and starting up heavy equipment to complete a low volume production is often frustrating. A contract manufacturing company gets rid of those irritations. RCO works with our customers on multi-scale programs to get it done within budget and on schedule.


 

4.      Reduce Manufacturing Time

Outsourcing parts to a contract manufacturer saves time. They are already operational with the necessary equipment and simply need your design data.


With proper planning, you can eliminate bottlenecks that would usually slow down your sales process. When an order comes in, you’ll be able to take the finished product off of your shelf and get it out to the customer with newfound efficiency.

 

 

Outsource Your Next Low Volume Production Job with Contract Manufacturing

 

Here at RCO, we work closely with OEMs and Tier 1 suppliers in the aerospace, defense, medical, and automotive industries. Contact us now to learn how a partnership with us can help you grow your bottom line by cutting costs and stress.