You currently manufacture your product line in-house but you can’t justify the capital investment to follow the trends. Is outsourcing the right strategy for you?

1 Does outsourcing fit with your business strategy? Review your goals and core-competencies.  Do you want to expand or downsize? How do you distinguish yourself from competitors – why do customers want to buy from you?

2 It allows you to take advantage of cash flow benefits. You have 30 days to pay the contractor compared to the weekly employee payroll. Plus, you’re paying for a finished product, rather than the raw materials.

3 Consider your options for material, equipment and labor cost. When outsourcing, the “materials” you receive are guaranteed to be usable, leaving you with zero waste and no inventory.

You can also take advantage of design and technology trends, without the setup involved. From an equipment standpoint, outsourcing allows you to add or expand your product offering/volume without the capital expense or learning curve associated with new machinery.  Outsourcing also enables a company to add capabilities without adding people, and allows you to focus on your core competencies. 

Source: The above information is from a presentation by John Beaver, director of sales at Northway Industries. For more information call (570) 837-1564 or visit

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