Posted on April 15, 2021

What Is Contract Manufacturing? Definition & Benefits Of Outsourcing Fabrication

welder at work

Sometimes, production businesses don’t have the space, technology, or bandwidth to fabricate all the elements needed to create their completed product. For these companies, contract manufacturing is the perfect solution.

Contract manufacturing involves partnering with a fabrication company to produce the components or specific parts needed to complete their goods. Sometimes, a contract manufacturing company handles all the production needs, including assembly.

Why Would I Partner With A Contract Manufacturing Company?

Businesses who choose to partner with a fabrication company usually do so because they don’t have the resources, space, or time to devote to a full-time factory. Others may outsource fabrication because they lack the proper equipment or skilled personnel to produce components of their product.

There are many other benefits to contract manufacturing.

1. Faster Production Of Goods

Your fabrication company will handle all aspects of production. This means they have their own materials suppliers and can bypass some of the supply chain roadblocks that individual businesses face. They can fast-track your products and stay on schedule.

2. Price Savings

Outsourcing fabrication means your business won’t have to spend money on hiring skilled personnel to produce your products. Additionally, your business will save money on equipment, real estate, and materials while avoiding the regulations that accompany on-site manufacturing.

3. Increased Flexibility

Contract manufacturing will increase your flexibility in several ways.

  • Scaled production: Increase or decrease your production seasonally or due to increased or decreased demand
  • Manufacturing several items at once: A fabrication company can work on several products or components at the same time, meaning more completed products and increased sales opportunities.
  • Start or stop production as needed: Outsourcing production gives you the ability to start or stop projects when it makes the most sense for your business.
  • Choose your outsourcing level: Your company can produce some parts of your product, but others may be too complex and expensive to fabricate yourself. Contract manufacturing allows you to choose exactly what you need fabricated, ranging from creating a single tiny component to assembling the entire product.

4. Improved Quality Control

Outsourcing your fabrication projects means your products will have a rigorous quality control process in place. Contract manufacturing companies frequently have stricter standards in place due to regulatory requirements.

5. Single Point of Contact

Businesses that produce their own goods frequently find themselves lost in a web of complicated communications between multiple materials suppliers, delivery services, and equipment manufacturers. Because a fabrication company handles all aspects of production, your contract manufacturer will act as your single point of contact.

EDCO Fabrication: Contract Manufacturing For Over 60 years

EDCO Fabrication didn’t invent contract manufacturing, but with over 60 years of experience, we have perfected it. Companies of all sizes rely on EDCO not just locally, but also internationally.

We specialize in all parts of the manufacturing process, including:

  • Laser Cutting
  • Forming
  • Welding
  • Powder Coating
  • CNC Machining
  • Assembly

Ready to take your production to the next level? Contact us for a free price quote and timeline for your project.