PEKO Precision Products

Outsourcing Manufacturing: If you come, they will build it

Posted by Scott Baxter on Mar 2, 2015 11:02:13 AM

contrat manufacturing assembly

There is never an easy answer to the question: "Who will build my product for me"  Especially when that product is highly complex mechanical equipment, machinery and instrumentation.  But with diligent research and patience, you may just come across a company like PEKO.

Over the years our customers and potential customers have visited our campus for a tour, and by the time they left I've heard phrases like "I can't believe I'd never heard of you guys", "I didn't realize a place like this existed", "I didn't know there was someone that could build my entire product line, I'm so glad to have found you".  These reactions are typically coming from engineers and managers that are in charge of outsourcing operations.  That problem they have is that typically they have good reason to outsource their product to a Contract Manufacturer, but finding a company that is capable of manufacturing components, assembling, testing and shipping is not an easy task. There are few with such capabilities and even fewer willing to concentrate on lower volumes  (<100 EAU).  For those in the medical, semiconductor, defense, industrial and other high tech industries, this is a major problem.  These industries typically have lower volumes and higher complexity.  The OEMs have the potential to be stuck in a spot where their product is too low volume to justify its own manufacturing line or to be an attractive job for some of the very large CM's.  The complexity might be too much for the smaller "assembly" shops.  The answer here is to find a OEM Contract Manufacturer with the engineering and manufacturing ability to produce such products.

Rare CM's like PEKO are the type that fit exactly this niche.  By maintaining ISO 9001, ISO 13485 and AS9100 Quality certifications, the commitment to Quality in high tech industries is displayed.  By offering a wide array of machinery and manufacturing options, the company stays nimble enough to manage low volume manufacturing.

What types of capabilities should a Manufacturer have before you decide to outsource?  As a general rule of thumb, the Contract Manufacturer should be producing about 50% of value add in-house.  This saves on a great deal of markup, handling and Quality issues from third party vendors.  Timeliness is also managed since the company will have more control of the product if the pieces are produced in house.  Contract Manufacturing for Equipment, instrumentation and Machinery should be comprised any combination of CNC Machining, Sheet Metal Fabrication, Welding, Electrical, Assembly, Test and Packaging.  The personnel should be a mix of Engineers, Manufacturing Managers, Quality folks and a strong Upper Management team.

For more information on how to choose the right Contract Manufacturing Partner for Outsourcing of Equipment, Instrumentation and Machinery, click below or contact me direct at

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Topics: Contract Manufacturing