Contract Metal Fabrication vs. In‑House Production: Which Delivers Greater Value?

When a job requires metal fabrication, there are typically two options: contracting the work out or building the components in-house. Both have their advantages, but it’s essential to understand the pros and cons of each option for your manufacturing operation. While in-house metal manufacturing may sound preferable, working with contract manufacturers can often allow you to experience the same advantages at a lower cost. Let’s take a closer look at these two options.

The Pros and Cons of In-House Metal Manufacturing

In-house metal manufacturing offers complete and total control over many aspects of the manufacturing process, from sourcing materials to the efficiency of different processes. But that level of control comes with higher costs. In-house manufacturing operations include the costs associated with:

• Equipment
• A skilled team, including wages, benefits and training
• Licensing
• Storage and facility management

These costs can outweigh the benefits for many companies, and many contractors can work with you to ensure you have a similar level of control over the product.

The Advantages of Contract Manufacturing

With metal fabrication outsourcing, you can enjoy extensive control over the process without taking on the risks, costs and responsibilities of in-house metal manufacturing. When working with contract manufacturers for metal fabrication, companies experience a wide range of benefits, including:

• Lower costs: Contract manufacturing does not require high initial investments and tends to offer lower costs for your company. Contractors typically have a well-established operation designed for efficiency and value, and achieving the same level of quality in-house would cost more.
• Speed: Setting up a metal manufacturing facility in-house takes a significant amount of time. It calls for researching and buying equipment, hiring a skilled team and completing many more steps. In contrast, a third-party contractor has everything set up and ready to go as soon as you are.
• Expertise: While you can hire experts for your in-house operation, it’s difficult to match the skill level of a dedicated metal manufacturing company that has different specialized experts on-hand. You may even be able to find additional value-added services, like welding and turret punching, with full-service contractors.

The disadvantages of contract manufacturing typically relate to a lack of control. But if you do your research, you can often find contractors who are happy to offer similar levels of oversight and help you make your final decision with complete confidence.

Finding the Right Partner

Your partner in metal products is essential to realizing all of the advantages of contract manufacturing. You want to consider how flexible they are and what kinds of additional services you need, such as assemblies, welding and tube-bending. At Fairlawn Tool, we work closely with our clients to deliver exceptional quality and a range of value-added services, all supported by a skilled team of experts.

Ready to get started? Reach out to us online or call (410) 374-1100 to get a quote or learn more about our contract manufacturing services.