While there’s pride in doing all design, manufacturing, and assembly work in-house these days, more and more OEMs are turning to specialist third-party organizations, like contract manufacturing partners, to help with the production of their electrical and mechanical assemblies, as well as any other components they can’t create as efficiently.
Whether it’s for medical and rehabilitation devices, arcade cabinet games, or heavy duty equipment and defense applications, there are many industries where a contract manufacturer can improve quality and help make operations more efficient.
If you’re considering outsourcing your electrical and/or mechanical assemblies, here are 5 major reasons why working with a contract manufacturing partner is so attractive to OEMs in any industry.
Lack of Skilled Labor
It’s no secret that manufacturers in the U.S. are facing a skilled labor shortage. The national unemployment rate is hovering around 4% (a 10-year low), while jobs in the manufacturing industry have been growing steadily for more than a year. This means there aren’t many workers for OEMs to hire, however, contract manufacturers consistently have the skilled workforce needed to build an OEM’s subassemblies. Likewise, because they work with such a diverse group of companies, employees are fully-trained on the latest best practices and standards, and have experience to easily meet the needs of a wide variety of manufacturers.
Floor space doesn’t grow on trees for manufacturing facilities, and overloading an area isn’t safe or efficient. Instead of adding space to an existing building, OEMs can outsource production to a contract manufacturing partner and let them worry about the space needed to build the assembly. That way, the OEM can focus on its core competencies and use its floor space to increase output of the finished product, ultimately leading to an increase in profitability.
Repeating Quality in High Quantities
It can be simple to put together the perfect prototype assembly, but replicating that perfection for hundreds or thousands of assemblies is where it gets difficult. Every assembly needs to function properly, otherwise the entire system could be compromised. A contract manufacturing partner takes measures to perfect the manufacturing process and ensure the quality of each component it builds, creating detailed parts lists, work instructions, and even testing protocols. This guarantees the OEM will receive the highest quality outcome for each and every assembly, each and every time.
Keeping Pace with Technology
The rapid evolution of assemblies can make it difficult for OEMs to keep up with and invest in the latest technology and equipment. However, a contract manufacturing partner who specializes in mechanical and electrical assemblies will already be informed of and investing in the best equipment, because it makes them a better partner and the best choice for an OEM looking to outsource.
Meeting (or Beating) Production Deadlines
Bringing a new product to market is a big task that requires considerable planning and coordination. If it needs to be done quickly, it’s much easier for an OEM to split production with a contract manufacturing partner. Rather than holding up the process, outsourcing can help OEMs get products to market much faster.
While each OEM may have its own reasons to partner with a contract manufacturer, many of the benefits are equally recognized across all industries. If you want to learn more about contract manufacturing and how to choose the best partner, download our free Beginner’s Guide to Contract Manufacturing by clicking on the button below.