Are you really comparing apples to apples?

Contract Manufacturing is here to stay.  From the US to China to Eastern Bloc, companies all over the world are seeing the benefits of strategically utilizing a contract manufacturer.  From mechanical assemblies, to components to electronics, OEM's are outsourcing in a big way. 

Huge cost savings can be unlocked in:

  • Overhead disparity - Large OEMs are plagued by layers and layers of overhead, driving rates to $100, $200, even $300 per hour.  By leveraging a smaller CM, those costs are dramatically decreased.
  • Handling fees - In-house manufacturing requires management of a huge supply base with final integrating done at the assembly floor.  Vertically integrated Contract Manufacturers can eliminate these costs by doing all the work in their own facility.
  • Purchasing leverage - OEMs and CMs can use their mass as purchasing leverage across multiples products and customers.

At PEKO, our team of experienced manufacturing experts can help you benchmark the current manufacturing costs of your product again outsourcing.  If you make low volume, high complexity mechanical assemblies and equipment, you may benefit from a benchmarking exercise like many of our other customers.  By filling out the form to the right, a team member will reach out to you to get the process started