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Solve Your Labor Shortage Through Contract Manufacturing

Contract manufacturing is a solution to the labor shortage.

Let’s face it – it’s hard to find skilled workers and manufacturers can’t keep up with growing customer demands. The U.S. Manufacturing Index stood at 62.1 in June 2021, just below the previous month’s all-time high, meaning the industry continues to grow. Human Resources teams across the U.S. are struggling to fill positions because the COVID-19 pandemic dramatically changed the way we do business and the way people want to work. The right contract manufacturing partner can help manufacturers fill the labor gap while providing a few other added benefits.

What’s Driving Recruitment Woes?

  • People learned what it was like to work from home during the COVID-19 pandemic and some decided to stay home for good. They get to spend less time commuting and less money on gas, workwear, and childcare. This leaves more time for family and, likely, more disposable income.

Contract Manufacturing to The Rescue

If you need to increase production capacity quickly, the solution is contract manufacturing. A great contract manufacturing partner will already have a skilled workforce, production capacity, and established quality processes in place. By outsourcing some work, you can redeploy your workforce on the main production line to increase overall throughput.

Besides the relief you’ll feel on the production line, outsourcing should also help your purchasing team reduce their workload as component procurement for the work you outsource will become your CM partner’s responsibility. Some contract manufacturing partners, like MCL, will also offer engineering and design help to ensure your design is highly manufacturable, which can help reduce costs. Partnering with a contract manufacturer can also help you avoid needing to invest in more production space as the manufacturing sector continues to grow.

You can learn more about contract manufacturing and whether or not it could help your organization by reading our Beginner’s Guide to Contract Manufacturing. Click the button below to access your copy today.

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