There are many reasons why Contract Manufacturing is beneficial to an OEM business, here’s a list of just a few:

• OEM’s can focus on their core competency of sales, marketing and designing
• OEM’s can rid themselves of overhead costs associated with idle equipment, floor space, depreciation of capital equipment and labor costs
• OEM’s can focus on designing with latest technologies without the cost of upgrading capital equipment for the manufacturer of their products.
• OEM’s can minimize their infrastructures by ridding themselves of running manufacturing and test operations within their business.