contract assembly definitionContract assembly is an approach in which a firm hires an outside manufacturer to produce components or final products based on the original manufacturer’s design. Assembly contracts operate differently than typical manufacturers. Contract manufacturing combines semi-finished products to produce a final good or product.

What industries utilize contract assembly? 


The electronics industry uses private label manufacturers to outsource manufacturing from all around the world. A final product might say “Made in China” but the individual products can be outsourced to different countries to create the final product.


Nearly 50% of all car manufacturing is done off-site by contract manufacturers. Many automotive companies do not build all of the components to the vehicle, as these products are outsourced.

Pharmaceutical and Nutraceuticals

Contract manufacturers produce chemicals for various products. Likewise, equipment for these pharmaceuticals and nutraceuticals are commonly outsourced to contract manufacturers. 

Food Industry

The food industry uses contract manufacturing to develop packaging for various food products.

Consumer Products

Contract manufacturers put together and assemble products for consumer use.


Assembling and packaging games and puzzles.


Mechanical assembly for industrial products such as tractors and other farming equipment.

Peoria Production Shop’s Capabilities 

Peoria Production Shop is a midwest company that has been providing solutions to original manufacturers problems for nearly 80 years. These manufacturing issues extend from inadequate packaging, to shortage of procurement, and even poor lead times with auto-labeling, repackaging, and shipping.

Peoria Production Shop (PPS) is ISO9001:2015 certified for 15 years, focused on quality products, processes and continual improvement.  We provide gold-level quality services to Fortune 100 manufacturers such as Caterpillar, Inc.   PPS provides kitting, mechanical assembly, packaging, labeling, and sewing with capabilities to customize your assembly needs.

The coronavirus pandemic has allowed Peoria Production Shop to tap into new resources within the medical field to provide hand sanitizers, spray bottles, masks, and other personal protective equipment (PPE). The increased need for PPE has sparked the company’s interest in working with local hospitals to help those on the front lines of the pandemic.

Additionally, PPS has recently incorporated games and entertainment into our manufacturing capabilities through the production of products for companies such as Lux Blox and Dagz Dice Game.  PPS would like to enhance our services in the beauty industry and has manufactured  shaving and pedicure products. Likewise, PPS has recently expanded our  square footage and has invested in new machinery for auto-labeling.

Recently, PPS has provided packaging solutions for companies that experienced shipping problems such as a window package that was not properly packaged, allowing a carrier to damage the product before it reached the customer. PPS worked closely with the client to create a new design that eliminated breakage and would otherwise have been a high cost for their  in-house packaging and repackaging.

PPS has also recently entered the subscription service industry. We assemble, package, and fulfill products for subscriptions such as razor companies. Contract assembly is the heart and soul of Peoria Production Shop.  We work with manufacturers to create product solutions that companies face each and every day.  At Peoria Production Shop, the focus is on creating jobs, not profits. As a not-for-profit organization, Peoria Production Shop focuses on being the leading provider of jobs for people with high-functioning disabilities. Contract assembly allows for these individuals to work together to create products for manufacturing companies while achieving social and financial independence.

Peoria Production Shop offer 80 years of experience in providing solutions to companies of all sizes needing contract assembly and outsourced processes.  We offer assembly, kitting, sewing, packaging and shipping with tight inventory control, lot code traceability and stringent quality processes.  Contact us to learn more about our many solutions including experienced contract assembly.







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