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ABCs of Contract Production: How it Works for Companies

contract productionImagine you have a terrific idea for a product. You’ve done market testing, your prototype is impressive, and you’ve even created a few of the products yourself. However, the production process is tedious. Thus, there is no way you can manufacture enough of your product to meet the market demand. Considering factors like labor costs, quality assurance processes, and production demands, you realize that it’s not feasible to handle on your own. What do you do? Well, if you’re like many companies, including global Fortune 500 companies, you choose Conversion Technologies International (CTI) as your contract production partner.

Definition of Contract Manufacturing

Contract production is also known as contract manufacturing. It is the process by which one company hires another for partial production of products. Contract production may also be referred to as outsourcing manufacturing or subcontracting. More companies than you think probably engage a contract production partner. The reason? It can save time, money, space, and stress for manufacturers. Indeed, this type of production relationship helps keep the supply chain for many products humming along.

How does contract manufacturing work?

In a contract manufacturing agreement, the company that has needs for partial or full manufacturing services is known as the hiring company. The hiring company seeks out a reputable contract manufacturer, to determine if they have the capabilities to take over a portion of the production. If the contract manufacturer can provide benefits to the hiring company, a production contract (also called a contract manufacturing agreement) will follow. From there, the contracted company will play a vital role in the production.

CTI is an undisputed industry leader in contract production. Boasting a state-of-art manufacturing facility, along with a modern R&D facility, our West Unity, Ohio-based business is here to help. We have served the needs of countless small and global businesses alike. CTI specializes in:

  • Adhesive Coatings
  • Laminating
  • Slitting and Die-Cutting

What to Look for in a Contract Manufacturing Partner

When choosing a contract production partner, look for a company that boasts:

  • Experience
  • Custom-design and production capabilities
  • Versatility in materials and substrates
  • Extensive equipment/machinery
  • Reputation for excellence
  • Track record of success
  • Friendly, helpful team eager to help you meet your production schedule

CTI is a nationally recognized contract production company. We meet all industry standards set forth by organizations such as:

Examples of Contract Production

Examples of services provided by CTI can best be seen through many of our success stories. As the go-to contract manufacturer for outsourcing production, CTI’s successes include:

Custom Compressing and Laminating – Automotive Industry

CTI entered into a contract production agreement with a company that needed compression of a 1” nonwoven fabric laminated to aluminum, and then sheeted. Where other companies had failed to provide this vital step in the production process, CTI delivered results in record time.

Adhesive Coating for Peel and Stick Product – Construction/Roofing Industry

A roofing company in the midst of new product development came to CTI to help develop and coat a new Peel and Stick roofing product for flat industrial buildings. CTI had the equipment needed and helped develop and coat the product, to the satisfaction of the company.

Lamination of Water Barrier Film to Absorbent Material – Personal Products Industry

A company in the personal absorbent products industry required the lamination of a moisture barrier film to absorbent materials. Using the water-based gravure method at CTI, we were able to take over their overflow production needs.

These are just a few examples of how CTI has served as a contract production partner for manufacturing companies. Our dynamic team of technicians and engineers is eager to help your company as well. Contact us today to discuss your production needs, by calling 419-924-5566, or send us a message online.

What Companies Use Contract Manufacturing?

Companies across virtually all industries use contract manufacturing. Some, but not all the industries, that partner with CTI are in the following fields:

  • Automotive
  • Aerospace
  • Construction
  • Consumer Products
  • Furniture
  • Marine
  • Medical Devices
  • Roofing and Textiles

Just a few of the household name companies that CTI has been fortunate to partner with include:

  • Clorox
  • DuPont
  • Firestone
  • Ford
  • Hanes
  • Henkel
  • Kimberly-Clark
  • Lear
  • Magna
  • Owens Corning
  • Sauder
  • Steelcase
  • Uniroyal
  • Valspar

FAQs about Contract Production and Manufacturing at CTI

Below please find a few frequently asked questions about contract production partnerships with CTI. If you don’t see your question, please feel free to message us online with your question. You may also request a quote online. Alternately, we’re always happy to receive calls and can be reached at 419-924-5566.

Is contract manufacturing only for large companies?

Actually, no. We can serve as a contract production partner for small, medium, or large-sized businesses.

Does contract production or manufacturing save money?

Certainly, hiring a contract production partner can help save on labor costs. Also, companies can save by not having to purchase expensive equipment. Likewise, at CTI, we have overflow storage available that can also help cut costs.

What technologies do you offer for contract manufacturing?

We boast the latest, most sophisticated technologies, and techniques to meet countless manufacturing needs. These include:

  • Belt Laminator
  • Hot Gravure
  • Hot Roll Lamination
  • Knife-Over-Roll Coating
  • Meyer Rod Coating
  • Powder Coating
  • Roll Coating
  • Slot Die Coating
  • Water-Based Gravure Coating and Printing
  • And more!
How do I learn more about contract production at CTI?

Simply give us a call at 419-924-5566. Or feel free to request a quote online or send us a message online. We look forward to discussing your contract production needs!