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Contract Manufacturing

The Dynamic Field of Contract Manufacturing


Contract manufacturing has assumed growing importance during recent years as a very popular business model.

During contract manufacturing, a commercial venture hires another company to supply goods or services (or both). This practice has allowed entrepreneurs in a number of fields to compete more effectively with large, established businesses. While some industries have relied heavily upon the practice of contract manufacturing for decades, this model has gained importance as a way to conduct commerce more cost-effectively during the Information Age.

For example, some manufacturing specialties today depend extensively upon contract manufacturers. These include aluminum die casting, gear manufacturing, certain complex product assembly projects, computer number control (“CNC”) machining, and the completion of highly specialized industrial manufacturing processes, such as forging, grinding, and broaching. This paradigm holds great appeal for entrepreneurs seeking to generate goods or supply services as inexpensively as possible without sacrificing quality.


Forms of Contract Manufacturing

Contract manufacturing today represents a diverse undertaking. Companies of many sizes compete in this thriving marketplace. Various industries have embraced different business models for contract manufacturing, including the following:

Producing Finished Merchandise

One of the most popular types of contract manufacturing involves entering into an agreement for the production of specific products. The goods generated in this way typically conform with a company’s proprietary specifications. Examples of this type of contract manufacturing occur frequently in the aviation industry, where companies may hire contractors to produce specific models of aircraft for airline companies. The manufacturer strives to complete order for specific numbers of aircraft conforming to a customer’s design plans.

Manufacturing Parts

Another widely utilized form of contract manufacturing involves contracting to produce specific components or parts. A manufacturer who assembles widgets may contract with several different contract manufacturers to produce specific parts required in the final assembly. Typically, the customer enjoys the ability to specify details of the component: the dimension, size, color, and other features may all hinge upon the order requirements. The modern automotive industry relies heavily upon this business model.

Contracting for Labor

In some situations, contract manufacturers supply labor instead of components or finished products. For example, an engineering firm may enter into a contract with a manufacturing enterprise to furnish technical expertise in creating prototypes for prospective customers, for example. The consulting engineer works for the engineering firm but supplies consultations to the prototype manufacturer’s customers. In other situations, a contract manufacturer may supply large numbers of workers to an industrial facility for a limited period of time to help complete a specific project. This workforce won’t remain available indefinitely but will remain available to help complete a designated assignment.

Leasing Equipment or Facilities

Finally, some contract manufacturers supply specific equipment or facilities. This type of arrangement occurs frequently within some industries. One example involves contracts to perform product testing at specifically designated facilities. A race car manufacturer may enter into a contractual agreement with an autotest course firm to permit the testing of a new engine at a particular site prior to embarking on a mass production run, for example. Industries which depend upon cutting-edge technology sometimes utilize this form of contract manufacturing to disseminate new production or testing capabilities.


Some Benefits of Selecting Contract Manufacturing

What benefits do companies obtain from contract manufacturing? These advantages may vary from one business to another, of course. However, in general, several considerations cause companies to enter into a contract manufacturing arrangement:

Achieving Cost-Efficient Production

One of the most significant benefits of contract manufacturing involves promoting greater cost-efficiency. Businesses do not need to invest in expensive machinery or production facilities to obtain specialized parts.

Optimizing Specialized Knowledge or Skills

Contract manufacturing allows companies to access highly specialized experts for limited periods. This capability frequently offers significant labor savings.

Reducing Overhead

Contract manufacturing often enables a business to lower overhead expenses. Instead of maintaining an entire production facility, for example, the firm contracts for the production of specified merchandise.

Ensuring Deadline Compliance

Occasionally an enterprise must complete a project by a specific deadline. Contract manufacturing offers a way to divide up an assignment and ensure adherence to the desired production schedule.


The Traits of an Excellent Contract Manufacturer

The specific traits you may seek in a contract manufacturer will depend upon the nature of the market venture under consideration. These traits sometimes vary widely from one commercial undertaking to another. In the case of contract manufacturers who produce industrial components (including metal parts), finding a business capable of providing highly specialized manufacturing services on demand often proves paramount.

Here at Bunty LLC, we have created a variety of different types of specialized forges and forging equipment. If you are seeking a contract manufacturer to undertake the creation of forged components, you will benefit by selecting a company which has already made a significant capital investment in state-of-the-art forging equipment and personnel training. This decision allows you to benefit from a highly specialized market niche.

We possess the power to generate forged metal parts for many different customers. By relying on our contract manufacturing services instead, you can enjoy access to the latest forging technologies and benefit from the unique skill sets of our experienced forge operators. Contract manufacturing supplies a “win-win” solution for both parties.


For further information about our services, contact us via the convenient website form or submit a request for quote directly.

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About us

From a contract manufacturing firm, BuntyLLC evolved into a full service custom machined, forged and cast metal parts fabrication enterprise. We supply global solutions from our headquarters in Greenville, South Carolina.

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