Contract manufacturing is a process that establishes a working agreement between two companies in which one company produces parts or materials on behalf of their client. In most cases, the manufacturer also handles the ordering and shipment processes for the client. As a result, the client does not have to maintain manufacturing facilities, purchase raw materials, or hire labor in order to produce the finished goods it can sell to consumers.

Since the contract manufacturing process is essentially outsourcing production to a partner that privately brands the end product, there are a number of business ventures that can make use of this arrangement. Pharmaceutical companies, food manufacturers, and computer parts manufacturers employ contract manufacturing, as well as companies selling automotive parts, hygiene products, and medical supplies. The military also benefits from contract manufacturing, with many products used in flight and on land produced by contract manufacturers.

If you're looking to turn your idea into a product and save on production costs, contract manufacturing benefits companies across all industries. Contract manufacturers will execute your ideas from assembly through logistics.

Contract manufacturers offer turnkey assembly and full-fabrication services with the resources to develop any equipment, system, or individual product. Between developing a solution and creating a highly reliable product, the contract manufacturer carries out printed circuit mechanical and final assembly, system integration, and testing, as well as shipping and packing services.

The contract manufacturer assumes the cost of manufacturing facilities, materials, labor, training and equipment. Through design phase to completion, the contract manufacturer oversees all product manufacturing operations, tests products, and packs and ships.

There are several advantages to contract manufacturing. For the manufacturer, there is the guarantee of steady work, since having contracts in place that commit to certain levels of production makes it much easier to forecast the future financial stability of the company. For the client, there is no need to purchase or rent production facilities, buy equipment, purchase raw materials, or hire and train employees to produce the goods. All the client has to do is generate sales, forward orders to the manufacturer, and keep accurate records of all income and expenses associated with the business venture.

The contract manufacturer operates a full-service product manufacturing and assembly operation on behalf of the client's business. Contract manufacturing brings a high-quality product onto the market while increasing client profits. Cost associated with manufacturing, labor, training, and equipment evaporate for the client, and it gets products that exceed its quality standards.