What is Outsourced Manufacturing and How to Choose the Right Process

Outsourced manufacturing is the process of using an external company to manufacture your products. This may be because you need certain features or parts of your product that only larger companies have access to, or it could simply be because you do not have the equipment required to manufacture the product yourself, or maybe you don’t have the time required to handle production in-house. Regardless of your reasons, there are many different outsourced manufacturing processes that you can choose from, each with its own benefits and drawbacks.

What Is Outsourced Manufacturing?

There are several types of manufacturing, including on-site, contract-manufacturing (also known as third-party or outsourced manufacturing), and offshoring. Each type has its own advantages; they are all complex in their own way. Choosing one will come down to your industry, time constraints, and budget. We’ll explain what each manufacturing process entails so you can choose wisely.

The Benefits of Using an Outsourcing Partner

There are many different benefits of outsourcing manufacturing overseas, including labor costs, speed to market, control over the quality, regulatory compliance issues, and more. The most obvious benefit of outsourcing manufacturing overseas by a reputed sourcing company in the USA is cost reduction—it can often be half or less than what it would cost in-house. Though there are lower wages paid in certain countries, even if you had a factory in America your employees’ overall compensation package (salary + benefits) would still be much higher than that of your low-cost competitors because they wouldn’t have health insurance or other employee benefits. Why? Because taxes and regulations require those things for U.S.-based companies; your Chinese or Indian counterparts don’t have these expenses since their government doesn’t require them.

Considerations Before Selecting an Outsourcing Partner

Custom manufacturing isn’t cheap, but with all production, options come trade-offs. That’s why there’s no one right way to go about it. What you need depends on your manufacturing goals—and your budget. If you want one-of-a-kind designs, then maybe a licensing deal is right for you. But if your goal is producing affordable goods for a wide audience, then maybe mass production makes more sense.

Types of Production Processes for Plastics Injection Molding

There are a lot of different processes used in manufacturing plastics. They range from expensive processes like pre-production finishing or automated quality assurance to more efficient production processes such as injection molding. You can have many types of manufacturing processes for plastic injection molding. Today, manufacturers use several different methods during each phase of production: planning, design, fabrication, assembly, and packaging. Each method has its own pros and cons which we will explain below. Below you’ll find out what makes each method special but first let’s give you an overview of plastic manufacturing in general – more precisely injection molding! Plastic Injection Molding: Before getting started with these types of outsourcing procedures it’s crucial that you know some basics about how these procedures work.

North American vs. Global Manufacturers

One of the first things you’ll want to do when considering a manufacturing process is determining if you should outsource overseas or work with a domestic firm. But what exactly does outsourcing mean? In its most basic form, outsourcing means that your goods are produced in another country by someone else while you focus on marketing, sales, shipping, etc. The reason many manufacturing companies choose procurement companies in the USA is because of how costs affect each decision. Working with an overseas manufacturer will always be cheaper than producing goods domestically because labor costs are lower in other countries.

Discover the Differences Between Two Popular Plastics Injection Molding Methods

Injection-molding plastics can be produced through a few different injection-molding methods. These methods, known as thermoplastic injection molding (TIM) and thermoset plastic injection molding (TPSIM), each come with their own set of advantages. To determine which process is right for your project, you should know some basics about how they work, what they’re best suited for, and how to choose between them.


Nishi Singh is a professional journalist and editor in New Delhi. She has studied Mass Communication from National Institute of Mass Communication.