What is contract manufacturing?
Definition, benefits and process of contract manufacturing. Everything you need to know before having CNC parts made externally.
Contract manufacturing means an external production company makes components to your drawings and specifications. You save the investment in your own machines and staff, which suits companies without their own machining capability.
Contract manufacturing explained simply
Contract manufacturing (also called subcontract machining) means that a specialised production company, the contract manufacturer, makes components on behalf of a customer. The customer supplies drawings or 3D models, and the contract manufacturer takes care of programming, production and quality inspection.
Unlike in-house production, the customer needs no machines of their own, no trained specialists and no CNC programming knowledge. Contract manufacturing is therefore an industrial service that creates flexibility and minimises investment risk.
In-house vs. contract manufacturing
The choice between in-house production and external contract manufacturing depends on quantities, budget and core competencies.
Types of contract manufacturing
CNC turning
Rotationally symmetric parts such as shafts, bolts and bushings, on modern CNC lathes with driven tools.
CNC milling
Prismatic components, housings, plates. 3-axis and indexed 5-axis machining for complex geometries.
Complete machining
Turning, milling, drilling and threading in one setup. Reduces re-clamping errors and lead time.
Sliding head turning
Slender, delicate parts up to Ø32 mm on sliding head lathes. Ideal for medical technology and electronics.
Frequently asked questions about contract manufacturing
Contract manufacturing is an industrial service in which a specialised company (the contract manufacturer) makes components on behalf of a customer. The customer supplies the design data and the contract manufacturer handles the entire production on their CNC machines.
Yes. Contract manufacturing is an industrial service. The contract manufacturer provides the machines, the know-how and the staff. The customer carries no investment risk for machinery and benefits from the specialisation of the manufacturer.
A contract manufacturer is a specialised production company that makes components on behalf of other businesses. It has a modern machine park, trained staff and a quality management system such as ISO 9001.
The terms are often used interchangeably. Strictly speaking, in contract machining the customer supplies the material, while in build to print the manufacturer procures it. In practice most companies offer both.
No capital cost for machinery, access to modern CNC technology, flexible capacity, reduced risk, shorter time to market and the freedom to concentrate on your own core competencies.
Contract manufacturing is used across industries: machine building, automotive, medical technology, aerospace, food processing, electrical engineering and special machinery. Requirements for materials, tolerances and documentation are adapted to each sector.
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