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A Contract Manufacturer (CM) is a firm that manufactures components or products for another, hiring firm. Many CMs make electronic products, but this business model is used in industries beyond electronics.

The way the business model of contract manufacturing works is the hiring firm approaches the contract manufacturer with a design. For an agreed upon price, the CM then acts as the hiring firm's factory, producing and shipping units of the design on behalf of the hiring firm.

Many well-known companies use contract manufacturing as an alternative to operating and maintaining their own factories. Printers, computers, and cellular phones are all examples of products that are made using this method.

See also

• Electronic Contract Manufacturing
• Electronics Manufacturing Services

This article is based on the article "Contract Manufacturing [7]" from Wikipedia - the free encyclopedia created and edited by online user community. This article is distributed under the terms of GNU Free Documentation License. Here you find the list of authors of this article. The article can only edited within Wikipedia. Edit this article in Wikipedia.