If you operate a manufacturing business and you want to start selling a product that is made from aluminium, but you do not currently have the equipment needed to fabricate this item (or the trained operators that you will need to use this equipment), you might be mulling over the idea of outsourcing the production of this particular item to one of your local aluminium fabricators. Here are two factors you should consider whilst you're trying to make this decision.
Whether or not the product is in demand all year round or just seasonally
The first thing to consider is whether or not your customers will be interested in buying the aluminium product throughout the year or during a specific season. For example, if you want to create and sell small aluminium boats, then this product might only be in demand just before, and during the summer season (as people are more inclined to buy and use boats when the weather is good).
In this situation, purchasing extremely expensive fabrication equipment, setting it up in your manufacturing plant and then hiring or training your existing staff to use it might not be sensible, as the cost of all of this might not be offset by the money you make in sales during the brief few months that this product is in demand. Using the services of an aluminium fabricator to produce the boats for you in the run-up to the summer season would be more cost-effective and will ensure that the quality of the aluminium boats is extremely high from the outset (which might not be the case if you set up your own fabrication centre on your premises, as there are often teething problems when a manufacturing business first begins producing a product it has never made before).
How tight your budget is
You will also have to factor in how much you can afford to spend on manufacturing and selling this new product. If your project budget will only just cover the cost of the materials and the fabrication, then it might be prudent to outsource the production of the product to an aluminium fabricator. The reason for this is as follows; buying the equipment and hiring a skilled aluminium fabricator to work in-house will cost far more in the long-run, as you will be responsible for the maintenance of the equipment and will have to not only cover the fabricator's salary but also pay the expenses associated with their pension, their sick leave and holiday pay, as well as many other things.
Outsourcing to an aluminium fabricator who works for themselves will probably work out cheaper, even if they are very skilled and so charge a high price for the aluminium items they produce.
If you have ever wondered how a processing and manufacturing plant operates, you have come to the right place to find out your answers. I have compiled a series of detailed articles about the inner workings of a processing plant. I don't work in the industry myself but I've spent a very long time researching this subject as it is something that really interests me. I will be looking at the types of products that processing plants produce, the method they use to produce them, and the ways these products are shipped to market. Thank for checking out my blog!