Can Outsourcing Sub-Assembly Lower Production Costs?

Most original equipment manufacturers (OEMs) choose to outsource their sub-assembly needs to lower production costs, but there are many other reasons to do so. During the sub-assembly process, companies will hire an outside manufacturer to build smaller parts that are used with OEM products. This can save them a significant amount of time and money in the long-run and is a great way to streamline and improve current operations. The main benefits of outsourcing sub-assembly include:

  • Cost savings
  • Improved quality
  • Volume flexibility

Let’s take a closer look at each of these benefits below.

close up image of drills

Cost Savings

By hiring an overseas facility to handle the manufacturing of sub-assembly parts, you can eliminate a significant amount of labor and overhead costs. If you’re thinking about building your own manufacturing facility in the United States, you will be tasked with finding the perfect plot of land, finding a construction company, and hiring internal personnel. If this sounds like a lot of work to you, it may be beneficial to outsource your sub-assembly needs.

Improved Quality

Sub-assembly builds often require expensive equipment and trainer personnel. If you’re trying to build a manufacturing facility for your sub-assembly needs, this can take an insurmountable amount of time and money. Instead of putting this added responsibility on your shoulders, you should consider outsourcing to an experienced supplier. There tend to be fewer defects when sub-assembly is conducted by a third-party supplier likely because these facilities work to identify poor quality parts from the get-go.

Volume Flexibility

Outsourcing your sub-assembly needs can come in handy if you suddenly need additional units of your product. When you hire an outside manufacturer, it’s easy to quickly place an order for another round of product. When you manage your own manufacturing facility, you’ll have to move your sub-assembly schedule around to accommodate for new bulk orders.

United Global Sourcing: Your Partner in Value-Added Sub-Assemblies

At United Global Sourcing, we can help you find the best overseas manufacturer for your product. We specialise in sub-assembly, and we never compromise quality for price. You can expect us to reduce the cost of your materials without compromising the final product’s quality and integrity. We can also help you when it comes to castings and forgings, precision machining, and plastic-injection molding. If you have any questions about our industrial manufacturing or consumer product services, don’t hesitate to contact our team today for a free quote.