What Is Contract Manufacturing

Have you ever had a pristine idea for a new product or offering? Here’s an even better question -- have you ever had to throw that idea in the trash because you had no way of bringing it to life by yourself? Don’t worry, this is something far too many people are faced with every single day.

Ideas happen often, but taking action on those ideas is where things get difficult. A large reason for this is because most individuals and businesses don’t have the means to bring their idea to life -- including the resources, overhead, equipment, time, energy, and manpower.

The good news is you don’t necessarily need all those things to offer a certain product under your exclusive brand. There are plenty of manufacturers out there that already have the means to get the job done right -- and they’re 100% willing to help you meet your business’ end goal.

So, What Is Contract Manufacturing?

Contract manufacturing is a fairly easy concept to understand, though it’s one most small and medium-sized business owners are unaware of. To put it simply, contract manufacturing is when a company hires a third-party company to manufacture their products for them.



Without contract manufacturing, many companies would fail to bring their product to company shelves and consumers wouldn’t get to enjoy the many great ideas they have. 

It’s why contract manufacturing services are completely revolutionizing the retail and ecommerce industry.

Two great examples of this are Flex Ltd. (previously known as Flextronics) and Foxconn Technology Group. They’re two of the biggest contract manufacturers in the electronics space and have helped manufacture products like the iPhone (Apple), Xbox One (Microsoft), and Kindle Fire (Amazon).

Pros and Cons of Contract Manufacturing

Contract manufacturing is a multi-trillion dollar industry that continues to grow every single year. The contract manufacturing market accounted for nearly $2.0 trillion in 2018 and is expected to increase up to $2.7 trillion by the year 2023. If you were thinking it would digress, it won’t.



Benefits of Contract Manufacturing

Let’s take a look at some of the most prominent benefits and advantages of contract manufacturing, that way you can fully understand the beauty and power it provides your company with:

• You won’t need to worry about the overhead and resources needed to manufacture a product.
• Since you’re saving on the costs of manufacturing, you also increase profit margins.
• Contract manufacturers have valuable insight and in-depth knowledge of the products they manufacture.
• Since you’re not focused on the manufacturing process, your employees can focus their energy on more important tasks.
• With a contract manufacturer, you have ultimate scalability and flexibility for the future.
• You have full control over the product, as far as the formula, label, pricing, etc.

Now that you have a firm idea of why you should consider contract manufacturing for your product line, it’s time to take a look at some of the downfalls and disadvantages it comes with. While it’s beneficial to a wide number of companies, it’s not meant for everyone.

Disadvantages of Contract Manufacturing

When you outsource control over the manufacturing of your products, you gain a wide number of benefits that allow your company to strive in the face of adversity. At the same time, it can present various challenges and obstacles for you, your employees, and your consumers.

• Finding a trustworthy and reliable contract manufacturer that’s dedicated to producing high-quality products is difficult.
• You have no control over the production facility, making it hard to pin-point areas of improvement in the manufacturing process.
• Many contract manufacturers don’t practice solid communication, which is frustrating for your company.
• You also come across intellectual property risks when partnering with a low-quality contract manufacturer.

Before you get started with a contract manufacturing company, it’s essential you cover all your bases to ensure it’s the right process for you. Only then will you get the most out of your new product line!

How to Find a Trustworthy Contract Manufacturer

When it comes to the contract manufacturing process, success only comes when you find the right contract manufacturer to partner with. You have to treat it as if you’re hiring a new employee, especially since they’ll be responsible for producing a product your customers love.

Here are some valuable tips you should consider before outsourcing the production process to another company:

• Before you partner with a contract manufacturing company, take a look at their past customer testimonials and stories.
• You should confirm that your contract manufacturer has relevant experience in your market or industry.
• Always assess a contract manufacturers ability to scale and flex production to your needs.
• When discussing your needs and goals with the product, be straight-forward with your contract manufacturer so they understand from the get-go.
• Keep in mind that this is a partnership. If you don’t think you’ll work well alongside your contract manufacturer, move on to the next potential candidate.
• Always pay attention to the pricing and ensure it fits your company’s budget.
• Your contract manufacturer should be in compliance with all regulations and guidelines necessary. 
• Since you won’t have control over the production facility, ensure their facility is one you would want if you were producing it.

Contract manufacturing might be a new concept to you and your decision makers, but it’s something that’s been around for a long time. There are a wide range of companies offering this type of service today, making it difficult to find the right company to produce your products.

Trust Us As Your Contract Manufacturer

Although finding the right company to take control over the manufacturing and production process is difficult, we like to make the process as easy as possible. At Cactus Juice Bottling, we offer the best contract manufacturing services available today -- and we stand by that!

We ensure a quality and effective production facility to guarantee high-quality products for you and your customers. We practice exceptional customer service to ensure our clients are more than satisfied with our service. Contact us today to learn how you can take advantage of our offerings!