What Is Contract Manufacturing?

New companies looking to bring their ideas to market are often shocked at the expense and complexity involved in manufacturing. That’s why most goods designed and sold by your favorite brands are, in fact, manufactured for them (under contract) by independent manufacturers. Even companies that have in-house manufacturing often rely on contract manufacturers for several components in their final products.

Contract manufacturers do not design or sell their own products, and instead provide their services to multiple clients. This allows them to focus entirely on manufacturing and leverage economies of scale. Many of these companies will also help their clients finalize designs to reduce manufacturing costs.

While there are pros and cons to both contract manufacturing and in-house manufacturing, most companies leverage contract manufacturers for their cost savings, quality, skill, and experience. Contract manufacturers often specialize in types of processes (examples include metal machining, custom chemicals, printed circuit boards, complex assemblies, food packaging, etc.) or industry sectors, and maintain the high-specialized certifications when required.

Why Be a Contract Manufacturer in New York State?

Did you know the gross state product of New York exceeds $1.7 trillion annually? This makes New York a global economic powerhouse, with one of the largest economies in the world (if New York were an independent country it would have the 10th largest GDP). Manufacturing contributes $77 billion towards this figure. Several top contract manufacturers benefit from this economic strength; examples of NY made products are found across several industrial sectors, serving both domestic and global markets.

It isn’t only large companies that use contract manufacturing. Through the NYSTAR program, New York provides financial, technical, legal, and marketing support to hundreds of start-ups. Not only are New York’s contract manufacturers vital to the success of these innovative companies, but they themselves can benefit from this wealth of NYSTAR support.

If you’re a contract manufacturer and would like to be part of FuzeHub’s Knowledge Base so that we can match you with businesses that might need your contract manufacturing in New York, please fill out our Contract Manufacturer Profile.

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