If you’re in the chemical industry, hiring a contract manufacturer has many advantages. As well as saving you valuable time and money, your business will gain access to a wealth of technical expertise, insight, and experience. This will ultimately allow you to create a better quality product for your customers and improve your service to them.
Whether you’re new to the industry or an established business that’s struggling to keep up with demand, partnering with a chemical manufacturing company can help you reach your production targets. From simple reagents to complex pharmaceutical formulations, contract manufacturers like ReAgent offer a variety of specialist services to the chemical industry.
Explore our website to learn more about our services or read our complete guide to contract manufacturing here.
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What is contract manufacturing?
Companies that are paid to manufacture products on behalf of other businesses for a specified period of time are called contract manufacturers. Essentially, they provide an outsourcing service that involves making products to suit the client company’s particular requirements. For example, Apple hires contract manufacturers in China to produce iPhones that meet their strict, patented specifications.
A contract manufacturing organisation (CMO) can either manufacture a generic product for any client, or it can make a patented product for a specific company. The latter means the contractor can’t legally manufacture the product in its exact formulation or design without the permission of the patent owner. 
Some chemical products have exclusive patents, but many of them share the same formulation and are only differentiated by their specific branding. For example, liquid laundry bleach is basically a diluted solution of sodium hypochlorite, but it’s sold under several different brand names.
Why use a contract manufacturer?
Using a contract manufacturer can make your business operations more cost-effective and efficient. This is especially true if you’re having difficulty keeping up with orders. If that’s the case, you may benefit from subcontracting all or a portion of your production, depending on your needs.
Likewise, outsourcing your production requirements to a contract manufacturer may be a good solution if your products have seasonal peaks. It means even if you’re at full capacity, you won’t have to reject potentially valuable orders or compromise the quality of your service.
You might also choose to use a contract manufacturer if your business lacks the equipment, skills or technical expertise to manufacture the product to the required standard (more on this later on). This may be because you’re a relatively new business and don’t have the capital to invest in the right machinery. Alternatively, you could be an established business that wants to trial a new product or service. 
Advantages of contract manufacturing
Contract manufacturing has advantages for businesses of all sizes. Many start-ups and small businesses find contract manufacturing allows them to get their products to market quickly without risking too much capital.
Even if your business already has the equipment required to do the job in-house, outsourcing your manufacturing can often be a faster and more cost-effective option. Some of the benefits of contract manufacturing include:
- Improves technical expertise
Established contract manufacturing companies will have developed and perfected their manufacturing techniques over the years. They’ll have probably produced a wide range of products for different companies and will know exactly how to resolve potential problems that may arise.This kind of experience and technical insight can be invaluable to your business. For example, a good contractor may be able to offer tailored advice on how to make your product better or recommend changes to make the production process more cost-efficient. - Reduces operating costs & boost profitability
Using a contract manufacturer means you won’t need to buy new equipment or hire and train new employees to operate and maintain it. This can significantly reduce your business’s operating costs, resulting in a higher return on investment.Outsourcing to a contractor also allows you to manufacture on an as-needed basis. By only ordering that exact number of items you require, you can avoid tying up cash in unnecessary stock (plus it keeps your storage requirements to a minimum). All of these benefits can translate into increased profitability. - Boosts potential for business growth & expansion
In many cases, hiring a contract manufacturer can help your business to grow at a much faster pace. If staff don’t have to juggle the complexities of production in-house, they’ll have more time to focus on things like product development, sales and marketing. Or you might want to use the opportunity to pursue other business goals like establishing a highly-competent sales team.Another advantage of contract manufacturing is that it provides an affordable way to scale up production. If you’ve got a good relationship with your contractor, you’ll probably find they can offer you very competitive pricing if or when the time comes to increase production. - Accelerates time-to-market
With access to the right equipment and highly trained experts, a contract manufacturer will be able to provide a much faster turnaround than if you were to complete the same task in-house. As well as increasing production efficiency, a timely turnaround is a sure-fire way to impress your customers.For new businesses that are just starting out, partnering with a contract manufacturing company allows them to get their products to market relatively quickly – often within a matter of weeks in some cases. - Get industry-specific solutions
Some products, particularly those related to the chemical industry, rely on specialist techniques, formulations and equipment. Partnering with a contract manufacturer that specialises in your sector can help you create a better quality product that will meet the required industry standards.For example, at ReAgent we offer specialist contract chemical manufacturing services to businesses in the medical device and pharmaceuticals sectors, among others. Take a look at our case studies page to discover how we’ve helped businesses achieve their industry-specific goals.
How to choose a contract manufacturer
Choosing the right contract manufacturer will require some effort and time on your part. Start by researching online and gathering information. You might also want to speak to your contacts in the industry, as well as your wider network of friends, colleagues, and acquaintances to see if there’s anyone they’d recommend.
Be sure to consider key areas like the company’s technical capabilities, experience, reputation, turnaround times, and pricing. To help narrow down your shortlist, set up meetings with the firms you’re interested in to get a better understanding of their operations. Don’t be afraid to ask probing questions – you need to be confident they can fulfil your requirements and complete the job to a high standard.
If possible, visit the manufacturer in person and arrange a tour of their facilities. Take the opportunity to have a closer look at the equipment and speak to the people who might be working on your product. Only once you’re completely satisfied should you think about signing a contract manufacturing agreement. For more tips on how to find a contract manufacturer, visit our blog. 
Summary
Hiring a contract manufacturer can have many advantages for your business. As well as helping to reduce your operational costs, it allows you to utilise technical expertise, experience, and specialist equipment that will ultimately help you to create a better product. Outsourcing your manufacturing requirements also means you’ll be able to offer customers a faster turnaround. Plus, it’ll be much easier to scale up affordably as your production volumes increase. All of these advantages can help to boost profitability and give your business a competitive edge.
ReAgent offers high-quality contract chemical manufacturing services to businesses from a range of industries. Contact us today to find out how your business could benefit.
