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 (www.flextronics.com), 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 (www.flextronics.com), Sanmina-SCI Corporation (www.sanmina-sci.com) and Celestica (www.celestica.com).

The ODM
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.

EMS and CEMS
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 ?
Is there any way to ensure that you've found the right contract manufacturer, or does it remain a leap of faith?
The contract manufacturer may feel the inventions were conceived of using their resources or their employees, and therefore, feel they should own the invention.
"If the contract manufacturer is dealing with highly innovative companies that are pushing the limits a bit, but the brand is not looking to push the envelope on product development (or vice versa), conflicts may arise.
It is very difficult to measure the capacity of a contract manufacturer just from a questionnaire.
These regulations provide a framework to evaluate the operations of your contract manufacturers. Be certain that you and your counsel understand the ins and outs of the Foreign Corrupt Practices Act; California Proposition 65, which prohibits companies from selling products containing certain chemicals; and the California Transparency in Supply Chains Act, which requires some companies to publicly report their efforts to eradicate human trafficking and slavery.
8, 2012 (CENS) -- Dampened by a slack global economy, Taiwan's annual LCD TV shipment by contract manufacturers is estimated to drop, for the first time ever, by 13-16% year on year to only between 37 million and 38 million units this year, according to WitsView, a global market researcher.
Pharmaceutical companies are now more cautious about investing in projects, forcing contract manufacturers to work harder and smarter, and prove that their service is attractive and can deliver on target.
These tell the contract manufacturer how parts on a board are to be connected.
The Ranstadt site was one of nine operating sites in Europe for Budelpack, which was once one of the largest contract manufacturers of cosmetics in Europe with customers including Beiersdorf, Henkel and Unilever.
This major global contract manufacturer in healthcare and consumer markets is not seeing much foreign competition in the markets it serves, due largely to its strengths in molding with assembly, says v.p.
JC Tec Industries of Annville, KY, is a contract manufacturer of plastic components including insulators, cams, gears, end caps, rollers, ball valves, cable assemblies, latches, bearing inlets and other parts.

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