What Is Contract Manufacturing and Why Use It?

Contract manufacturing is when a business collaborates with another company to produce a product or a part of a product. There are several reasons why a company will work with a contract manufacturer, including a lack of resources or equipment to complete the work in house, not having the capacity to handle the required volume, or wanting to take advantage of the skills that a specialized manufacturer provides.

At Highland Machine we offer a wide range of contract metal fabrication services in order to solve almost any problem that might be interfering with completing a metal fabrication project. As a contract manufacturer, we are experts at precision sheet metal fabrication and have the team, machinery, and capabilities to handle a wider range of projects than most companies would be able to complete in house.

Types of contract manufacturing

There are several different services that a contract manufacturer can provide for you.

  • Individual component manufacturing – The contract manufacturer is only responsible for building a single part of a larger, more complex product.
  • End-to-end manufacturing – The contract manufacturer creates a finished product and is heavily involved in the product design, prototyping, and overall specifications.
  • Private label manufacturing – This type of contract manufacturing is similar to end-to-end manufacturing, because the contractor delivers a finished product. In this case, however, the manufacturer is less involved in the design and development stage.
The benefits of using a contract manufacturer

Contract manufacturing is ideal for smaller companies that may not have the required equipment or workforce to build the product. It is also a great choice for larger companies that need a specialized product that they don’t have the capabilities to manufacture in house. If you need a large quantity of the product, then using a contract manufacturer may make sense, because they typically have experience producing high volumes.

In any of these situations, the benefits of contract manufacturing are the same:

  • Lower production costs – You negotiate a cost for your product, and that’s all you pay. You don’t have to worry about hiring more labor, purchasing specialized equipment, or any other overhead costs.
  • High quality standards – A reputable contract metal fabrication company or other contract manufacturer will have very high standards and excellent quality control measures in place.
  • Expert advice – Fabrication and manufacturing are a contractor’s entire business. They know how to do it well and can offer advice on how to produce your product in the best way possible.
  • Frees up your time – When using contract manufacturing, you can pay greater attention to other business operations, because the contractor handles all manufacturing related needs and issues.
We handle all of your metal fabrication needs

Metal fabrication is the entire process of manufacturing a product from raw metal materials to your exact specifications. We use methods like laser cutting, CNC punching, TIG, MIG, and spot welding, robotic welding, and stamping and forming.

Several industries routinely use metal fabrication, including medical, aerospace, automotive, and military.  Most of these industries require a high level of accuracy, customization, and adherence to very tight specifications. When you work with us for your contract manufacturing project, we provide products built to your exact requirements.

Highland Machine is a precision sheet metal fabricator

Our team completes your entire project in house, giving you a one stop shop for all your metal fabrication needs. After fabricating your product, we can also provide assembly, powder coating, and inventory management. By handling the precision sheet metal fabrication and these other services, we help streamline your production process.

If you have any questions about contract manufacturing, metal fabrication, or what to look for in a precision sheet metal fabricator, contact our team today.

Stay up-to-date with Highland Machine

Join our emailing list to receive product updates, company news, blog articles, and more.

700 5th St., Highland, IL 62249 • 618-654-2103 • info@highlandmachine.com
All content copyright © Highland Machine sitemap

creative by