Contract manufacturing:
A business model in which a company partners with a contract manufacturer to produce components or final products based on the hiring company’s designs.
When a manufacturing business doesn’t have specific in-house CNC machining abilities, they’ll contract these tasks out to other companies to save money and time. Costs for in-house machining include expensive equipment, experienced workers, and space to house the new operation. In contrast, contract manufacturing can be done with the same level of quality and more reasonable expenditures.
In contract CNC machining, a business that specializes in efficient production of parts uses the hiring company’s designs to create the project. This frees up more of the hiring company’s time and resources to grow their business or focus on their essential manufacturing processes rather than spending time learning new equipment. Components are then labeled with the hiring company’s brand.
Many industries use contract CNC machining services for production of medical devices, electronics, parts for aerospace and defense, and packaging. The extent of the contract manufacturing can be limited to one small part or can be an entire product line.
Benefits of Contract CNC Machining
The following are the benefits of contract CNC machining that make this process popular across industries.
Freedom to Choose the Right Machining Service: The contracting company can choose only CNC machining services that assure them quick turnaround times. For example; the mechanical gears can be manufactured by combining CNC turning, grooving, and filleting, or by CNC milling. The contracting company can choose the CNC milling or a combination of multiple machining processes. If they are unable to make a decision they can rely on the contract manufacturer for decision making.
Access to state-of-the-art equipment: Every manufacturing industry does not necessarily have the most advanced production facilities. However, if contract CNC machining services are chosen, the products can be manufactured using the latest technology. Also, the production company that hires the contract CNC machining services does not require to invest in highly expensive CNC machine setups. The saved capital can be invested in enhancing the quality of packaging, supply chain, customer services, etc.
Expertise adds Value: Since contract CNC service providers may have experience in the niche, so their experience may add value to the production. Also, having an experienced team working on components’ CNC production, product innovation, and strategic production flow can be effective.
Third-Party Quality Monitoring: Having quality control of a third-party service provider acts as an element of efficiency in contract CNC machining services. Opting for third-party and in-house quality monitoring helps in enhancing the quality of production.
Ready to Save Costs on Your CNC Machining Needs?
Outsourcing your CNC machining needs creates a solid business case. When you only have an occasional need for CNC machined parts, you don’t want to spend the time and money needed to invest in building your own CNC production house. If now or at any time you have questions, please contact us. We would gladly discuss feasibility, potential return for your company, and if our contract machining services are the right fit for your machine shop.