Contract Manufacturing

Contract manufacturing is when a company hires another company to produce its products. Instead of making goods in-house, the hiring company outsources production to a specialized manufacturer. This arrangement allows the hiring company to save on costs, leverage the manufacturer’s expertise, and focus on other aspects of its business, such as design and marketing. The contract manufacturer adheres to specific guidelines and quality standards set by the hiring company, ensuring the final product meets their requirements. This model is common in various industries, including electronics, clothing, and pharmaceuticals.