Contract Manufacturing

Advantages of Contract Manufacturing

Contract manufacturing offers a broad range of advantages over investing in-house manufacturing or choosing manufacturers separately for every project, such as:

• Increased Cost Savings
  

  In a contract manufacturing relationship, you (as the contracting company) do not have to purchase the expensive equipment or hire the skilled employees necessary to produce and assemble components in-house; the contract manufacturer should already have the modern, well-maintained equipment and experts familiar with manufacturing operations that are needed for the project. You do not need to invest in machine setup and installation or employee training, which might otherwise be the case if these steps were performed in-house. Outsourcing manufacturing can help save you on energy expenditures, labor, repairs, maintenance, raw material bulk orders, and storage space.

  
• Streamlined Operations
  

  Contract manufacturing enables you to streamline your operations by freeing up resources that can be reallocated to core products and services. Instead of spending labor dollars on manufacturing every component in-house, you can use your internal resources to increase productivity downstream. For example, if you specialize in weld assemblies, painting, and kitting, you can subcontract the production of some or all of the raw components to a contract manufacturer, which frees up your employees to focus on the assembly process. In addition to reducing labor costs, this helps keep your employees safe and gives them opportunities to optimize their strengths.

  
• Improved Scalability
  

  Contract manufacturers keep detailed records of each company’s manufacturing preferences and technical specifications, allowing them to quickly scale production volumes up or down to meet demand. Additionally, since they can generally procure bulk raw materials at competitive prices, they can rapidly increase production volumes without incurring high costs.

  
• Enhanced Product Quality
  

  Good contract manufacturers are experts in their field. They have the experience, expertise, and equipment necessary to produce high-quality components to strict tolerances. Instead of spending time and money hiring or training employees for in-house manufacturing, you can partner with industry experts with the tools needed to produce better (i.e., greater functionality and quality) components and products than would be possible if you made them in-house.

  
• Reduced Overall Build Time
  

  A contract manufacturer is singularly focused on producing high-quality products that arrive on time and ready for immediate assembly, thereby reducing your overall production time. If you had to produce those components in-house, you may be waiting for the material lead-time, the lead-time to fabricate, and the lead-time for assembly. By contracting your manufacturing operations to a third party, you can simplify your internal processes and accelerate production, allowing you to enjoy greater market accessibility and shorter turnaround.
  Many contract manufacturers are also equipped with rapid prototyping tools, automated machines, and other advanced technologies aimed at maximizing the quality and speed of the production process. These can further help reduce overall build time and shorten the time-to-market for your products.

  
• Specialized Services
  

  Contract manufacturers typically offer a range of capabilities and capacities, which allows them to accommodate a wide variety of standard or custom components and products. Typical examples include angles, bump-formed sections, channels, cones, cylinders, obrounds, segments, and custom-sized seam-welded rectangular tubes. If you choose the right partner, you do not have to worry about them not meeting your specifications or standards.

  

Contract Manufacturing Process at G.E. Mathis Company

At G.E. Mathis Company, we specialize in precision metal fabrication solutions. Equipped with extensive manufacturing experience, a state-of-the-art fabrication facility, and an extensive catalog of tooling, our customers know they can trust in us for their contract manufacturing needs. Below, we outline the process we follow when tackling a contract manufacturing project.

• Design and Quote
  

  At the beginning of the process, the customer provides us with a drawing of the desired part(s) or component(s) with details about features and requirements. While we do not offer design or engineering services, we can use the provided drawing to determine whether we can meet the necessary specifications with our capabilities. If the drawing passes this evaluation, we provide the customer with a quote that details the materials and processes we will use for the project and the expected lead time for parts delivery. If the quote fits their project budget and schedule, we can proceed to the fabrication stage.

  

• Fabrication
  

  

  After the design and quote are approved, we can begin fabrication. The steps involved with the fabrication process depend on the part. For example, if the customer wants a flat plate or piece with geometry, we can simply program the equipment and cut the material. However, if the customer wants a more complicated component, the fabrication process is more involved, which extends its timeline.

  We maintain consistent communication with the customer throughout the whole process to ensure the part is fabricated correctly from start to finish. We also work hard to make the pieces to the highest quality possible and deliver them on time.