What is Contract Assembly in Manufacturing?

This article was originally published on March 30, 2021 but updated on 1/12/2023

Contract assembly in manufacturing provides many benefits to manufacturers of all sizes, whether small companies producing niche market products or large OEMs manufacturing consumer electronics or automobiles. Regardless of the market or products manufactured, all business managers seek the most cost-efficient production method that maintains a high level of quality.

Types of Assembly in Manufacturing

Many manufacturing processes require the assembly of various components or partial units for further final assembly into a larger unit or to prepare products for sale. Contract assembly providers help manufacturers to meet production goals by assembling a variety of products to return to their production line when and where assembled components are required. Manufacturers that outsource assembly and subassembly processes can reap big benefits by not performing these tedious tasks in-house.

Contract assembly in manufacturing is often beneficial as production companies can focus on their niche manufacturing market rather than devoting staff and space to assembling products. Contract assemblers perform tasks such as small parts assembly of housings or electromechanical switches used in automotive processes that must be assembled prior to insertion into a larger component. Assembly can be performed manually by hand or with the assistance of automated technology.

Experienced small-part contract assemblers provide assembly and subassembly in manufacturing to help manufacturers achieve the most efficient production rates to produce final, assembled products.

Contract Assembly in Manufacturing

Contract assembly operates in a niche market for the manufacturing industry. These companies work on a project-to-project basis. Outsourcing assembly work to a contract assembly house can be a profitable opportunity for manufacturers, allowing them to keep their own production and labor costs down while farming out work that an assembly house can do quicker and with a higher level of quality and expertise, as that is their niche.

Contract assembly services add value to OEMs through efficient and cost-effective assembly and kitting services.

Building Long-Term Customer Relationships

OEMs that establish long-term relationships with contract assembly houses stand to gain the most benefit. Peoria Production Solutions is an experienced contract assembly provider and acts as an extension of your team with high-quality assembly services provided with consistent quality. We offer continual support for current and new projects, always ready to evaluate the best solution to provide the most cost-effective assembly work possible.

We practice value stream mapping exercises to ensure the most efficient operations and conduct continual improvement exercises, passing cost savings onto our customers. Long-term relationships benefit both the OEM and contract assembly house, a valuable part of major supply chains.

Contract Assembly for Caterpillar

Peoria Production Solutions has been providing solutions to Caterpillar, Inc. for more than 80 years, since 1941. The Fortune 100 construction machinery and mobile equipment industry leader has come to rely on our quick and high-quality service for a wide variety of contract operations. We provide reliable secondary operations such as contract assembly, kitting, packaging, palletizing, sewing, and more.

Peoria Production Solutions has been providing valuable contract assembly services for more than 80 years. We are dedicated to a high level of quality as part of our ISO9001:2015 certification and a commitment to excellence. Contact us for all your contract assembly in manufacturing needs.