Contract manufacturing is a type of business agreement in which an OEM or other supplier outsources some or all of its manufacturing operations to another company (i.e., the contract manufacturer). The OEM provides specifications for the work and the contract manufacturer makes the parts, products, or assemblies to meet the requirements. Depending on the terms of the agreement and the product in question, the completed items are delivered to the OEM for further assembly into finished products or prepared for distribution under the OEM’s brand.
Here we’ll look at why many OEMs choose to outsource mechanical and electrical assemblies, what these services include, and the benefits of contract assembly.
Why Do OEMs Outsource Assembly?
Original Equipment Manufacturers (OEMs) today face a persistent challenge: meeting surging production demands without overextending internal resources or diverting them away from core functions and capabilities. When assembly operations require specialized material, equipment, or skills, facility upgrades, large amounts of space, or finding new suppliers, it may make sense to consider outsourcing production to a trusted partner, such as Partec, Inc.
This approach ensures that the right materials and equipment are available, adequate time will be allotted to the project, and experienced personnel will be doing the work. As a result, OEMs save the costs associated with equipment, tools, training, and potentially tying up equipment that could be used for higher value operations. It’s especially critical for short or limited-time production, where large CapEx or labor expenditures don’t make financial sense.
The decision to outsource typically hinges on production economics. Small to mid-volume runs rarely justify the overhead of a dedicated internal team. Even large manufacturers benefit from outsourcing electromechanical contract manufacturing when a project requires hand-assembly skills or specialized testing protocols that their own facilities aren’t optimized to handle.
What Do Mechanical and Electrical Assembly Services Include?
Partec’s comprehensive contract assembly services include engineering support, sourcing materials and components, electromechanical assembly, box builds, kitting, cable and wire harness assembly, hand assembly for delicate components, program management, and more.
Motors, Actuators, and Wiring Systems
Our electromechanical contract assembly include both mechanical and electrical or electronic systems integrated into a single unit. Our team also handles wire harness assemblies from 24 AWG to 4/0 AWG, producing single-wire or multi-conductor configurations for production quantities ranging from ten pieces to over one million units.
Control Boxes and Panel Builds
Our full system integration services also include complex control panel assemblies and full box builds. This involves mounting components, routing precision wiring, and integrating batteries or fuses—all followed by functional testing and quality checks. Our ISO 9001-certified facility ensures these systems meet the highest quality standards, whether they are simple mechanical sub-assemblies or intricate electronic systems.
The Benefits of a Full-Service Contract Manufacturing Partner
Choosing a contract manufacturing partner with the experience, expertise, and breadth of services to meet your requirements can help you meet or exceed production goals and streamline your supply chain. At Partec, we work to provide comprehensive assembly services that extend to engineering, controls, and design support, excellent communication, and ongoing compliance with industry standards, all of which help you avoid “vendor gaps” or inconsistencies in quality and production.
Faster Lead Times
Because we house materials, assembly, and wire processing under one roof, production flows at a steady pace without bottlenecks, so your items are ready more quickly. This model also means there are no transit delays and “handoff” errors that can occur when using multiple vendors, reducing scrap and rework.
Lower Overhead and Labor Costs
Contract mechanical assembly lets OEMs eliminate fixed costs associated with maintaining assembly operations in-house, including equipment, floor space, specialized tooling or materials, personnel training, and testing. Our manufacturing engineering support helps optimize assembly sequences to minimize labor hours and material waste, and our dedicated team has the resources to scale production to meet your needs quickly.
Improved Product Quality
Because we specialize in electromechanical assembly, box builds, and cable and wire harnesses for OEMs in many industries, we can achieve a higher level of assembly quality and reliability than a non-specialist manufacturer. The result is a better assembly and a better product for end-users.
When Should OEMs Consider Outsourcing?
OEMs choose to outsource assembly for many different reasons including:
- Mid-range production volumes: If you are producing between 100 and 50,000 units annually, maintaining internal production is often more expensive than a contract partnership.
- Complex hand-assembly needs: When a project requires the dexterity and decision-making of experienced, skilled manual assembly personnel that automation cannot replicate, or that your existing staff is unable to accommodate.
- Capacity constraints: When internal production is at capacity and resources preclude expanding facilities, equipment, or workforce size.
- Engineering gaps: When a project includes electrical or controls or other engineering support that your internal team cannot provide due to limited time or knowledge.
- Specialty components, materials, or skill needs: Experienced contractors like Partec have access to suppliers and skills to meet unique OEM requirements.
- Scaling up production quickly: Contract assembly services support fast production ramp-ups when OEMs lack time or resources to expand.
- New product launches: A dedicated assembly and testing team can work out inefficiencies and speed time to market for new products without impacting the rest of your in-house production.
- Resource management and alignment: Any scenario in which an OEM must redeploy its workforce, shift production strategies, or improve electromechanical product quality.
Contract Manufacturing Strengthens OEM Production
Contract assembly for electrical and mechanical systems is a strategic choice that lets OEMs scale production to meet market demand and business goals. By partnering with an electromechanical specialist, such as Partec, OEMs gain access to our proven expertise in engineering, assembly, testing, and program management.
We serve a diverse range of critical industries, including telecommunications, industrial power, lighting, and gaming equipment. Whether you need motor integration components for industrial machinery, complete box builds for power transformers, or anything in between, our team has the skill and experience to support your specific production goals.
Request a quote today to discuss your project and how our mechanical and electrical assembly expertise can help.
