Let’s face it – it’s hard to find skilled workers and manufacturers can’t keep up with growing customer demands. The U.S. Manufacturing Index stood at 62.1 in June 2021, just below the previous month’s all-time high, meaning the industry continues to grow. Human Resources teams across the U.S. are struggling to fill positions because the COVID-19 pandemic dramatically changed the way we do business and the way people want to work. The right contract manufacturing partner can help manufacturers fill the labor gap while providing a few other added benefits.
If you’re considering outsourcing your assembly, here are 5 major reasons why working with a contract manufacturing partner is so attractive.
1. Lack of Skilled Labor
It’s no secret that manufacturers in the U.S. are facing a skilled labor shortage. The national unemployment rate is hovering around 4% (a 10-year low), while jobs in the manufacturing industry have been growing steadily for more than a year. This means there aren’t many workers for businesses to hire, however, contract manufacturers consistently have the skilled workforce needed. And because they work with such a diverse group of companies, employees are fully-trained on the latest best practices and standards.
2. Space Constraints
Instead of adding space to an existing building, companies can outsource production to a contract manufacturing partner and let them worry about the space needed to build the assembly. That way, the business can focus on its core competencies and use its floor space to increase output of the finished product, ultimately leading to an increase in profitability.
3. Repeating Quality in High Quantities
It can be simple to put together the perfect prototype assembly, but replicating that perfection for hundreds or thousands of assemblies is where it gets difficult. A contract manufacturing partner takes measures to perfect the manufacturing process and ensure the quality of each component it builds, creating detailed parts lists, work instructions, and even testing protocols. This guarantees the business will receive the highest quality outcome each and every time.
4. Specialized Equipment
The rapid evolution of assembly can make it difficult for business to keep up with and invest in the latest equipment. However, a contract manufacturing partner will already be informed of and investing in the best equipment, because it makes them a better partner and the best choice for a business looking to outsource.
5. Meeting (or Beating) Production Deadlines
Bringing a new product to market is a big task that requires considerable planning and coordination. If it needs to be done quickly, it’s much easier for an business to split production with a contract manufacturing partner. Rather than holding up the process, outsourcing can help a business get products to market much faster.