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25/03/2019


Many industries utilise contract manufacturing and component manufacturing due to the number of benefits it can bring to their business and production.

Component manufacturing can be included in contract manufacturing, so these terms can often get confused; we have outlined the differences in this article to demonstrate which method would be best for your business.

Component Manufacturing

Component manufacturing is known as a one-time service, usually referring to manufacturing specific, individual components. This includes manufacturing components made from metals and plastics, using methods such as welding and metal fabrication. For example, standard components like lifting bolts can be manufactured in a large number but to the same specification – component manufacturers will be able to produce these for you.

Contract Manufacturing 

Contract manufacturing is an ongoing service due to the long-term relationships that are created between the Original Equipment Manufacturer (OEM) and the contract manufacturing partner. It involves outsourcing to a third-party to perform part of the manufacturing process of a specific product, whether that be a certain component or the assembly of the product. Sometimes, outsourcing companies can also provide design and distribution services too.

Advantages of Contract Manufacturing

Contract manufacturing provides a number of universal advantages to companies throughout many industries:

Saves Money

Contract manufacturing offers a budget-friendly service and will save you money on expenses related to production, such as: labour, purchase of manufacturing equipment, supplies and the facility. Due to the large number of customers contract manufacturers have, they will have lower costs per head which makes it a cost-effective investment.

Saves Time and Increases Focus

With close relations with suppliers, contract manufacturers can generate the required products quickly and efficiently. This positively impacts businesses productivity, allowing them to have more focus on other core services of their company.

Quality Control Procedures

Contract manufacturers implement strict quality control procedures, testing all products and identifying counterfeit or damaged products early, so you can be assured that your products will be of the best quality every time.

Advanced Skills

Contract manufacturers have great knowledge in a number of projects and industries, and are able to provide bespoke manufacturing services. They would have worked with multiple companies like yours, so will have an advanced skill set that you can take advantage of.

At AW Precision, we are one of the largest sub-contract manufacturers in the UK, with a number of skills under our belt. We place emphasis on service, high quality and competitive pricing so if you have any small batch high precision work you would like us to look at, contact us today.


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