Thanks to globalization, contract manufacturing has become one of the biggest industries in the world economy and it is only growing.
Companies are now making arrangements with third-party contract manufacturers to produce their products. In 2020, among the most enthusiastic in riding this trend are the pharmaceutical and technology industries.
In the case of the former, a report notes how contract manufacturer services will skyrocket all through 2025.
“Rising demand for biologics and generic medicines is predicted to primarily drive the contract pharmaceutical manufacturing market size over the forecast time frame,” the report reads.
Likewise, the consumer technology industry is also seeing a huge uptick in outsourcing their manufacturing lines. With this being the case, it is expected that contract manufacturing will play a much bigger role in the production of goods in the foreseeable future.
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Contract Manufacturing in 2020 and Beyond
As MarketWatch notes, the Electronic Contract Manufacturing Services sector is expected to be worth $554.2 billion in six years. It should also be pointed out that the global contract manufacturing growth is projected to be 6.6% by 2023.
Suffice it to say, companies are now becoming more reliant on outside manufacturers, which is largely fueled by increased competition and pressures to reduce costs of production.
Multiple industries are turning to cheaper, more streamlined professional contract manufacturing services so that they can improve their bottomline. However, quality is still a matter of concern, particularly for goods that are meant for high requirement consumer, medical and automotive markets.
With that being the case, there is also a shifting trend with regard to improving manufacturing processes when choosing which third-party firms to deal with.
Industries Involved in Contract Manufacturing
Contract manufacturing has basically pervaded every industry, but some are becoming more reliant on it than others. Some of these industries include:
With the heavy push toward globalization of the greater market influences, industries with the most to gain in selling by volume are the first in line to adopt the trend. As for what is being produced by these contract manufacturer firms, they include:
- Machine parts
- Electronic materials
- Medical apparatuses
There are plenty of other examples, of course, but those are the usual suspects in terms of what is produced via contract manufacturing.
Explaining the Rise of Contract Manufacturing
The rise of contract manufacturing is fairly easy to explain. Companies want to produce goods faster, cheaper, and with fewer expenses.
With third-party firms offering their services that meet all of those needs while maintaining an acceptable level of quality, it’s no wonder that the industry is getting bigger than ever.
Aside from that, though, there is also the increasing demand from consumers, the rising costs in raw materials, and the stiff competition.
Companies that choose to keep all of their production in-house would simply be unable to keep up. As a result, they need to rely on the manufacturing capabilities of firms that specialize in simpy following a standardized process for mass production.
Engaging Our Contract Manufacturing Services
As a contract manufacturer, we at Kore Industries are capable of providing companies with all of the mass production needs that they may have. We specialize in high-precision, industry-grade, and cost-effective manufacturing solutions.
With regard to the manufacturing services that we have to offer, please refer to the following:
- Consumer Electronics - We produce products such as power banks that can be used by both mass consumers and industrial companies. We make them powerful, reliable, and durable to provide the highest return.
- Household Appliances - We are capable of manufacturing a wide variety of household and corporate appliances, including robot vacuums. We also specialize in creating modules for air purifiers with the highest in terms of efficiency and affordability.
- Industrial Products - We make products used by major companies for use in their facilities such as dust sensors, industrial grade fans, dust and chemical filters, and more.
- Outdoor Gear - We produce accessories for outdoor use such as holsters for camera lenses, attachments, and even DIY gadgets for external use.
- Infant & Baby-Feeding Accessories - Our baby and infant sector includes parts and materials for use in feeding. They include sippy cups, fruit infusion filter bottles, and milk powder dispensers.
With regard to any of the products that we produce for babies and children, we make sure to use only non-toxic materials while employing rigorous standards. We make it a point to prevent any chance of contamination and ensure the safety of the products for use.
Why Kore Contract Manufacturing?
At Kore Industries, we make it a point to provide our clients with only the best in precision-manufacturing solutions. Our services involve meticulous craftsmanship, expert assembly, cutting-edge manufacturing technologies and top-notch customer services.
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