production of products on behalf of an OEM, in which the design and brand name belongs to the OEM. Contract manufacturers have made it possible for some companies to operate without owning any brick-and-mortar factories. Price pressure and the need for global product expansion are driving the growth of contract manufacturing. Any contract manufacturer should provide an advantage that isn't already part of the OEM's infrastructure. Also see "electronics manufacturing services" and "outsourcing."
The practice of providing manufacturing services based on a contract that specifically identifies terms of a transaction and may include the number of units to be produced. CMs are often used as overflow manufacturing support when an OEM's customer demand exceeds its internal manufacturing capacity. With contracts it is possible for the services providers to lose money, or make a large profit, depending on the negotiations.
Contract manufacturing services & contract manufacturers; including metal stampings, electronic contract manufacturing & manufacturers.