What is contract manufacturing?

What does contract manufacturing mean?

Contract manufacturing (also known as subcontracting) means that a company outsources the production of components or products to a specialized manufacturer.

This can range from producing a single component to handling everything – including sourcing, assembly, packaging, and warehousing.

The contract manufacturer often contributes with:

Technical input for design optimization and material selection
High-quality manufacturing of the parts
Warehousing of the parts until needed

What does the contract manufacturer need to know?

When you want to manufacture your product, you need to specify many different things for the supplier. If you’re unsure, the supplier can often help with the technical questions.

Here are some examples of questions you may need to consider:

Do you have a drawing of what you want to manufacture?
What material do you want to use?
How many parts do you want to produce?
Do you have specific requirements for cleanliness or tolerances?
Do you need any markings on the part? For example, a QR code?

What are the advantages of contract manufacturing?

Cost-effective production

Reduce your investments in machines, factories, and personnel.

Focus on your core business

Spend your valuable time on product development, sales, and growth.

Scalability and flexibility

Contract manufacturing makes it easier to handle fluctuations in demand – both up and down.

High and consistent quality

Choosing a reliable supplier like Falks Metall ensures high and consistent quality for your parts.

Access to expertise and engineering knowledge

Suppliers often have deep experience and can contribute with knowledge in manufacturing and material selection.

Full-service solution – from A to Z

Many contract manufacturers offer a complete chain – from machining to assembly and logistics.