BusinessTips

7 Misconceptions About Electronic Contract Manufacturing

If you’re thinking about expanding your production, you may have heard some common misconceptions about electronic contract manufacturing (ECM).

Well, we wanted to shine some light on those. Here are seven of the most common myths, and the truth behind each one:

1. It Is Only For Big Companies

Source: info.zentech.com

This is simply not true. While many large companies do use these services, there are many small and medium-sized businesses that can also benefit from outsourcing their electronics manufacturing. In the end, it’s all about making the best possible product, and ECM service providers are more than happy to collaborate with anyone who shares that particular goal.

2. It Is Expensive

While it is true that ECM can cost you money on labor and is sometimes more costly compared with in-house manufacturing, it is not necessarily more expensive. In fact, it can often be less expensive in the long run, which is why many companies also dabble in electronic contract manufacturing.

3. It Is Reserved For Complex Products

Source: valtronic.com

Another common misconception’s that ECM is only for complex products. In reality, it can be used for any product, regardless of its complexity. In fact, many ECM service providers have extensive experience with both simple and complex products, so they know how to handle any manufacturing challenge that may come their way.

4. It Is Only For High-Volume Production

While it can’t be denied that most companies turn to ECM for high-volume production, this is hardly the only instance where electronic contract manufacturing is valuable. In fact, ECM can be used for low-volume and prototype production as well, so long as it makes sense for the product to warrant outsourcing.

5. It Means Sacrificing Quality

Source: m.made-in-china.com

This is definitely not the case. While it is true that some companies, like Apple, pride themselves on in-house manufacturing, outsourcing your electronics doesn’t mean lower quality. Apple themselves outsources many products, like their infamous lighting port cables and chargers (for the time being, at least).

In fact, many other companies choose to outsource their manufacturing to an ECM because they believe it will lead to a higher level of quality control, amongst various other things.

6. It Could Lead To A Conflict Of Interest

This is another common misconception. While it is true that some companies may not want to work with a direct competitor due to conflict of interest, there are plenty of others who are more than happy to do so. In the end, it all comes down to the specific company and their own policies, whether the product you’re trying to manufacture is patented or not, and so on.

7. It Is Risky

Source: benbro.com.au

Sure, putting your business into the hands of someone else can be nerve-racking. However, you shouldn’t worry too much. Outsourcing your manufacturing can actually reduce risk if you choose a quality manufacturer. When you outsource to an ECM, you are working with a company that has expertise in manufacturing and can often provide a warranty on their work.

Conclusion

As you can see, there are many misconceptions about ECM.

However, the truth is, this can be a great solution for companies of all sizes and industries. If you are considering outsourcing your manufacturing, be sure to do your research and choose a reputable manufacturer that meets your specific needs and you should be more than fine.

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