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When Should A Company Consider and Take Advantage of Outsourced Concrete Contract Manufacturing?

When Should A Company Consider and Take Advantage of Outsourced Concrete Contract Manufacturing?

August 23rd, 2021By: Johnny Niumata

Precast Stairs Ready to Deliver

Outsourcing concrete product manufacturing is getting more and more common even if you yourself have the expertise to make simple concrete parts. Here are some considerations when deciding to outsource your concrete parts.

Outsourcing concrete manufacturing is ideal when multiple parts are required on a repetitive basis over a sustained period of time. This rule-of-thumb applies equally to commodity-type (e.g., pole bases, generator pads) and custom, specialized (e.g., precast stairs, umbrella bases) concrete products.

  • Outsourcing because of location can be a factor for larger parts. Premier Stoneworks is located in Palm Beach County, Florida, and so an out of state company may hire us to make concrete parts for a local project. Disclaimer, we already provide outsourcing services , see our “Contract Manufacturing” page for more information.

Consider the following when deciding whether to take advantage of outside concrete manufacturing:

  • What are the costs of setting up your own manufacturing infrastructure?
  • Do you have or must you acquire the requisite expertise? How expensive will it be to acquire that expertise?
  • How long will the learning curve be?
  • Will outsourcing keep you focused on your core business?
  • Can others make it better?
  • Will production of molds require a significant financial, time or other resource investment?
  • Do we have or will we need to acquire specialized equipment to produce the parts?

Once you have decided to outsource concrete contract manufacturing, consider the following when deciding which manufacturer to contract with:

  • Is the plant certified by the APA or PCI to ensure high consistent quality?
  • Does the plant have the ability to achieve production scale required to properly support the customer’s requirements?
  • Is the product competitively priced to justify the opportunity cost of not producing the product internally?
  • Is the product competitively priced compared to other concrete contract manufacturers?
  • What is the expertise and experience of potential outsourced contract manufacturers?
  • Does the manufacturing arrangement achieve expedited time to production?
  • Does the subcontract manufacturing company have specialized machinery that makes them a great partner?
  • Do the material supply relationships of a third-party contract manufacturer provide them with a competitive advantage?
  • What is the geographic location of the contract concrete manufacturing company and does it provide a supply-chain advantage to the customer?

Remember, typically, companies requiring concrete contract manufacturing for specialized concrete products usually do not have the capabilities of certified cast stone and precast concrete plants. So, outsourcing production of these specialized concrete parts makes tremendous economic, efficiency and strategic sense.


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