Top 3 Industries that Utilize Outsource Manufacturing

Outsource manufacturing has provided an economical and efficient way to produce many of the consumer goods which Americans purchase today. The lower costs of operation and manufacturing in Asia have especially empowered businesses to create consumer products that are affordable and readily available.  The result is offshore manufacturing remains a top strategy for many industries, especially those that produce sophisticated consumer goods.

Outsourcing the manufacturing of components as well as finished goods remains common in most industries. Read on to discover the top 3 industries which utilize outsourcing and will likely continue to into the next decade.

Outsource Manufacturing is Most Common in These 3 Industries

Americans are well-aware that most of the goods they purchase were manufactured by a factory that is, typically, located in Asia.  However, these industries are the largest offshore manufacturers:

1. Hardware and Software

A look at the top five biggest outsourcers in the United States reveals that hardware and software companies routinely leverage outsourcing. Major players in the American tech industry such as Apple, Cisco, and IBM harness the robust infrastructure and access to trained specialists which would be cost-prohibitive in the US.  As a result, they’re able to deliver higher quality goods which more consumers can enjoy due to their affordability.

2. Fashion

Fashion retailers have long outsourced the manufacturing of their goods to Asian countries due to the lower cost of labor and proximity to raw materials. Today, outdoor clothing, in particular, is estimated to be among the fastest-growing industries in the world. Outsource manufacturing is driving the industry’s growth by creating opportunities for companies to remain competitive through low production costs.

3. Pharmaceuticals

Contract manufacturing, more commonly known as outsourcing, is a major strategy for pharmaceutical and drug companies. BCC research estimates that contract manufacturing for pharmaceuticals will be a $197 billion industry by 2022. Likewise, Deloitte notes that outsourcing continues to play a significant role in pharmaceutical companies due to advances in technology which drive clinical innovation, increase manufacturing capacity, and create more sophisticated biologics. The result is better medicine and medical tools which improve the quality of patient care.

ITI Manufacturing Helps Companies Leverage Outsource Manufacturing

Outsource manufacturing opens the doors for many new types of products and strategies for businesses. Electronics, fashion, and pharmaceuticals all continue to take advantage of this. By enabling companies to access more advanced facilities and trained professionals, outsourcing production to Asian countries creates the opportunity to deliver better and more cost-effective goods to consumers around the world.

ITI Manufacturing helps companies leverage outsource manufacturing across a variety of industries. Start a conversation with us today to discover the many ways in which outsourcing drives business success. And for immediate assistance, call us at (281) 242-7030.

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