Contract manufacturing

Industries that use the practice

Many industries use this process, especially the aerospace, defense, computer, semiconductor, energy, medical, food manufacturing, personal care, packaging, and automotive fields. Some types of contract manufacturing include CNC machining, complex assembly, aluminum die casting, grinding, broaching, gears, and forging. The pharmaceutical industry uses this process with CMs called contract manufacturing organizations, constituting a $14 billion business segment around 2022. In the semiconductor industry, this practice is called the foundry model. Contract manufacturing is specially prevalent in the electronics industry.