Why Do People Outsource their Electronic Manufacturing Services?
Electronic contract manufacturing is a model where a business will have another company produce and package electronic components and products for them. But why do companies contract out (or outsource) their manufacturing services? In a survey of businesses, these were the leading reasons given:
- Reduce Costs (36%)
- Focus on Core Competencies (36%)
- Improve Quality (13%)
- Increase Speed to Market (10%)
- Foster Innovation (4%)
- Conserve Capital (1%)
In the electronics sector, many companies realize that they can achieve lower costs through contracting out their electronics manufacturing services. These services specialize in producing electronics – and therefore can do it efficiently and cost effectively. They also typically offer additional services beyond production, including storing and shipping of products.
Electronic manufacturing services also have a skilled workforce already in place to handle a business’ manufacturing needs. By contracting with them, a business can focus on its core competencies while achieving improved quality over doing electronics manufacturing in-house. With production now outsourced, the company can focus it financial and human resources on areas that most influence revenue and profit.
Electronic contract manufacturers typically have more production capacity than an in-house operation can achieve. They are able to respond to increased production requirements faster than an original manufacturer. This flexibility offered by contract services makes them an appealing option for some companies who want to move away from in-house operations,
Is Your Business Interested in Learning More About Electronic Contract Manufacturing Services?
If so, talk to ADCO Circuits. We offer electronic contract manufacturing services to the aerospace/military, telecommunications, automotive, industrial/commercial, wireless and medical equipment markets. We provide electronic designing, contract manufacturing, and rapid prototyping and PCB assembly services. We are an ISO 9001, TS 16949 and AS 9100 certified. Our personnel are trained to IPC J-STD-001 class 3 and IPC-A-610 class 3 qualifications. We also have the latest equipment and technology, and advanced information and quality systems to support all of their electronic manufacturing services.