Contract manufacturer

Brand name companies focus on product innovation, design and sales, while the manufacturing takes place in independent factories (the turnkey suppliers).

[1] Most turnkey suppliers specialize in simply manufacturing physical products, but some are also able to handle a significant part of the design and customization process if needed.

The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs.

Many industries use this process, especially the aerospace, defense, computer, semiconductor, energy, medical, food manufacturing, personal care, packaging, and automotive fields.

Some types of contract manufacturing include CNC machining, complex assembly, aluminum die casting, grinding, broaching, gears, and forging.

The pharmaceutical industry uses this process with CMs called contract manufacturing organizations, constituting a $14 billion business segment around 2022.