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Contract manufacturing companies are becoming a dynamic part of today's business landscape. Companies are always searching for ways to streamline operations and cut costs, all without losing product quality (and, in most cases, improving upon it). One strategy that has gained significant traction in recent years is contract manufacturing.
What Is Contract Manufacturing?
Contract manufacturing is a business arrangement where a company outsources the production of specific metal parts or finished goods to a third-party manufacturer. In this partnership, the hiring company (the "brand owner" or "OEM") provides the design and specifications of the part. At the same time, the contract manufacturer is responsible for the materials, production processes, assembly, quality control, engineering, and shipping.
Your business can thrive when you partner with a contract manufacturing company to make the required steel product. You'll be able to focus on other aspects of your business, including sales and new product design, while leveraging the expertise and capabilities of specialized manufacturing partners like Accurate Metal Fabricating. This arrangement works incredibly well in high-volume situations and industries such as POP display manufacturing, where one facility can't process everything.
Advantages of Contract Manufacturing
One of the primary benefits of contract manufacturing is cost efficiency. By outsourcing production to a specialized manufacturer, businesses can save on labor costs, equipment investments, and facility expenses. Contract manufacturers often have economies of scale that result in lower production costs, which are then passed on to the brand owner.
Access To Experts
Companies that fabricate for other industries pool resources to bring you the needed expertise. From skilled engineers to production plant personnel, they bring years of experience, specialized knowledge, and advanced technologies to their customers. This expertise ensures that products are manufactured to quality standards that comply with industry regulations.
Contract manufacturing companies provide scalability, allowing OEMs to adjust production volumes according to market demand. Whether you need a small batch or a large-scale production run, a reputable partner can accommodate your needs so you can avoid the pitfalls that can come from scaling a specific part accordingly. Fabricators already have the proper equipment in place to produce your item. From press brakes for metal forming to powder coating, they can scale to your business volumes when needed.
Focus On Your Core Competencies
Outsourcing manufacturing operations enables companies to concentrate on what they do best – innovation, marketing, and customer service. This focus on core competencies can lead to the potential for big things at your company. When you are free of worrying about the day-to-day, you can focus on growing your business in the future.
Partnering with a contract manufacturer can help mitigate risks associated with production. Fabricators like Accurate Metal Fabricating have strict quality control processes (ISO 9001:2015) to ensure that products meet or exceed industry standards. This reduces the risk of product defects, recalls, and associated liabilities. If there is a problem, the fabricator stands behind their work and will promptly deliver a replacement piece.
A skilled workforce can be challenging to find in many areas, especially rural communities. It's not the community's fault–a place with 5,000 people has fewer individuals to pull from than a significant metropolis with millions to draw upon. Most contract manufacturing companies are set up in major cities such as Chicago and can keep your enclosures flowing on the line continually. And it saves you time not having to recruit individuals.
Industries that Rely on Contract Manufacturing Companies
Many consumer goods companies turn to design companies to help them develop eye-catching displays that draw in customers. POP Display companies turn to contract manufacturers to produce displays in high volume for shipment across North America. These displays are fabricated out of steel components for strength and cost-effectiveness
Electronics manufacturing involves intricate processes and specialized components. Metal fabricators play a crucial role in high-tech products. They combine components such as printed circuit boards (PCBs) in sheet metal boxes or electrical junction boxes for the latest high-tech products.
For years, the automotive industry has relied on companies to provide elements for precision machining, metal fabrication, and assembly of vehicle components. From stamped pieces to multiple parts that make up a complex assembly, contract manufacturing ensures quality and efficiency. These parts are often hung on powder-coating paint lines to match specific branding guidelines for the auto industry.
Aerospace and Defense
Aerospace and defense companies trust metal fabricators to produce critical components, ensuring the highest precision, quality, and adherence to strict regulatory standards. Some of these components are stamped from high-performance metals such as titanium. Often, aluminum is selected because of its high strength-to-weight ratio and corrosion capabilities.
The medical device industry demands precision and reliability. High-volume fabricators are contracted to produce goods en masse to keep up with the intense demands for advanced medical equipment, such as carts. By centralizing production, they can easily take advantage of scale and shipments to locations wherever necessary.
Expertise and Experience
With over eight decades of experience in metal fabrication and assembly, we take your fully assembled pieces or components to the next level, meeting all specifications and industry standards.
Our modern manufacturing facilities have the latest technology and machinery, allowing us to handle complex projects efficiently and precisely.
We have a rigorous quality control process with top personnel scrutinizing every product we fabricate. This ensures your full-assembled component meets the highest quality standards, including ISO 9001:2015. Our commitment to quality is unwavering.
We understand that every project is unique. When you partner with Accurate, you'll be assigned a project manager who will be your single point of contact through the lifecycle of your finished part. That person will bring together other crew members to develop customized manufacturing solutions tailored to your needs.
We understand the importance of meeting deadlines. Our streamlined processes and dedicated team ensure on-time delivery of your products, helping you stay ahead in your market.
Our engineers have more than 100 years of experience. They analyze your prints and designs and offer suggestions for how to better fabricate your part, which in turn can reduce your costs.
Get a Custom Quote Today!
Are you ready to experience the benefits of working with a contract manufacturing company? Reach out to Accurate Metal Fabricating now and take the first step towards enhancing your production capabilities and growing your business.