Every business wants to grow, but with business growth and expansion comes a multitude of new challenges. While it may seem simpler to outsource many of these new challenges, there are some aspects that business owners are reluctant to contract out. 

One of the most complex challenges for many growing businesses is volume production. Production takes up considerable time and resources; it requires the need for more space, more skilled labor, production capabilities, and more. As companies grow, it’s common to find themselves spending less time on revenue-generating activities like marketing or product development as they struggle to keep up with demand. 

Production, however, is also one of the areas that many are reluctant to outsource. This reluctance often stems from a fear of losing control over the quality and operations of their product or service, but contract manufacturing services can provide this reassurance while also allowing for business growth. 

If you are a growing company looking for new ways to scale operations, contract manufacturing services offer an easy and cost-effective solution that can increase production capacity while creating more time for focus on your core competencies. You can dedicate more time to research and development, and revenue-generating activities such as sales and marketing and securing new client accounts. 

Reports show that many companies across the globe are still not using contract manufacturing to its fullest potential in gaining the competitive advantages it can provide. The reality is that using contract manufacturing services is a great way to grow your business while minimizing the risks! 

Let’s take a closer look at some of the benefits and provide insight on how it can help you grow your business... 


Space & Skilled Labor

A contract manufacturer offers more than just the physical space and equipment needed to produce your product. They will also provide skilled labor that is trained in your specific process requirements. This ensures consistency in your products and also saves you time. 

Contract manufacturing solutions give businesses access to much-needed production capacity that would otherwise be out of reach due to lack of space, labor, or expertise without increasing capital expenditures or permanent staff requirements. 

Consistent Quality 

Contract manufacturers ensure quality control through stringent auditing processes that verify the production process is being followed correctly on all levels of production to meet your specifications. 

Maximum Efficiency

A contract manufacturer can help small businesses maximize production, reduce overhead expenses, and increase cash flow by using their expertise to ensure a streamlined and efficient manufacturing process. They can be responsible for overseeing all of the steps involved in creating an individual product - from design to raw material acquisition to the final product assembly. 

Ability to Compete with Large Enterprises

Contracts manufacturers have access to advanced machinery and technologies that make them world leaders in their field. These resources allow manufacturers of all sizes an opportunity to compete with large enterprises. 

Quicker Turnaround Speeds - Cost Savings - Improved Margins 

Put simply, more products are marketed faster, at competitive prices. With greater efficiency comes faster time-frames; you can meet deadlines more quickly and see improved margins on per-unit costs. 

Lower Investment

Contract manufacturing services are a low-cost investment, with turnkey solutions available at all price points. For those looking to scale their production volume for the first time or grow an existing product line, contract manufacturers provide access to much-needed capacity that can be scaled up and down as your business needs change; they don't require the high fixed costs of owning a production facility. 

Contract manufacturers can provide solutions for a variety of industries, such as aerospace, automotive, semiconductor, and medical devices. Whatever your industry, it’s worth doing some research to see whether contract manufacturing might be the right move for your business. 

How To Choose The Right Contract Manufacturer? 

The process of selecting a contract manufacturer can seem daunting, but there are some things you can do to ensure you find one that will fit your needs and grow your business. Before you start looking, take some time to think about what is important to you in a manufacturing partner. Is location an issue? Do you need them to have experience working with other companies like yours? 

Once you’ve identified these criteria, it will make the process easier. Obviously, not all contract manufacturers are the same and your decision will need to consider what services they offer, their capacity for production as well as a variety of other factors. Contract manufacturers have different areas of expertise, so you need to make sure you do your research to find a contract manufacturer who can meet all of your needs. 

Please consider the following when choosing your contract manufacturing company: 

  • Do they have experience working in your industry?

  • Do they have a strong supply chain team with a global footprint?

  • Are they utilizing a rigorous inventory management process?

  • Does the company have a dedicated Quality team and Program in place? 

  • How does their capacity compare with your current needs or desired growth plans? 

  • Are they reliable enough to meet your deadlines, quality standards, and target costs? 

  • Do they provide dedicated resources to your program? 

  • Are they ISO certified and/or registered to manufacture to your industry standards? 

  • What is the process of placing an order with them, from concept to delivery?

Contract manufacturing, when done correctly, is an easy and cost-effective way to grow your business.  It minimizes risk and provides consistent quality while maximizing your own internal resources to focus on other key areas of your business. It enhances your ability to compete with larger enterprises, generates quicker turnaround speeds, and improves cost savings. 

When you're ready to take your business to the next level, it's important that you have a trusted partner in manufacturing. There are many benefits of partnering with a contract manufacturer and we hope this blog post has helped you understand some of the advantages of utilizing contract manufacturing solutions and how they can help grow your company. 

At Applied Engineering we can work with you to provide a cost-effective solution to meet your production needs. We're always happy to answer your questions about contract manufacturing services and discuss how we can help you grow your business. 

Contact Applied Engineering today for more information on our offerings and solutions. We'd love to hear from you!

Applied Engineering