contract manufacturer

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contract manufacturer

An organization that makes products under contract for other companies. It caters to the OEM market. In the computer and electronics fields, thousands of products are manufactured by contract manufacturers. These products are ordered by and branded with the OEM's name, which sells them to its customers.

Contract Manufacturers Can Be Huge
Some of the most popular products in the business are made by contract manufacturers. For example, Microsoft's Xbox game machine is made by Flextronics Corporation (, a huge company with factories around the world and nearly USD $15 billion in sales in 2004. Flextronics also makes cellphones for Ericsson, routers for Cisco and printers for HP. Other major contract manufacturers are Flextronics International (, Sanmina-SCI Corporation ( and Celestica (

An "original design manufacturer" (ODM) is similar to a contract manufacturer, but typically owns the intellectual property (IP) for the product itself, while the regular contract manufacturer uses its customer's designs and IP. Contract manufacturers can make hundreds or even thousands of different products, but ODMs often specialize in only a handful of categories.

Contract manufacturers in the electronics field that not only make products, but offer assistance with the design and supply chain generally prefer to call themselves "electronics manufacturing services" (EMS) or "contract electronics manufacturing services" (CEMS). See OEM.
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References in periodicals archive ?
Contract manufacturing is part of a trend toward reduced supplier bases that grew out of the Just-in-Time philosophy.
The contract manufacturing segment is expected to see tremendous growth, as companies are looking to reduce costs and serve new, emerging markets.
The report provides an extensive research and prudent analysis of the Indian contract manufacturing industry.
As such, contract manufacturing has evolved as one of the integral components of the pharmaceutical market.
This growth results from the underlying growth in the biopharmaceutical market, expansion of services offered by fill-and-finish contract manufacturing organizations and the greater use of contract manufacturing organizations by pharmaceutical and biotechnology companies.
This 300-page report documents current industry price and contract practices for biopharmaceutical contract manufacturing.
29, 2015 /PRNewswire/ -- This report analyzes the worldwide markets for Electronic Contract Manufacturing Services in US$ Million by the following Product Segments: Consumer Electronics, Computers & Peripherals, Telecommunications, Industrial Electronics, and Others.
Use this report to: - Understand the growing opportunities in the field of electronics contract manufacturing (ECM), both for buyers and providers of such services.
According to our new research report Global Contract Manufacturing Market Analysis, demand for contract manufacturing services has been continuously soaring due to the rising cost pressure on pharmaceutical companies.
To order this report: Global Pharmaceutical Contract Manufacturing Industry
1 Sectors of Medical Device Contract Manufacturing Market: Revenue ($bn) and Market Shares (%), 2012 Table 4.

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