💼intro to business review

Contract manufacturing

Written by the Fiveable Content Team • Last updated August 2025
Written by the Fiveable Content Team • Last updated August 2025

Definition

Contract manufacturing is a form of outsourcing where a company hires another company to produce parts or entire products on its behalf, typically to save on costs and leverage specialized manufacturing capabilities. It allows businesses to bring products to market without maintaining their own factories.

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