In- House or Outsourcing: Which Is Best When It Comes To Manufacturing?

These days you can outsource just about any area of your business, which is hugely convenient. It means even without a lot of money to start up you can get yourself off the ground and be turning a profit. The problem is, it’s not always the best option if you’re in it for the long haul. Paying another company to work for you can be extremely practical but means you’re taking a chunk out of your profits. Manufacturing is usually a good area to outsource, due to the following issues- however, there benefits to keeping it in-house too.




When it comes to setting up a factory to manufacture products, you’re looking at an enormous cost. Specialist machines, tools and materials can all set you back anything from thousands to millions. On top of this, you need to factor in insurances for which you can find more information here, maintenance costs, premises and the actual staff to run the factory. Even the process of interviewing and recruitment can cost a lot of time and money. However, once you’re all set up, the cost of producing products will be cheaper. So in the long run you will save money overall. Outsourcing allows you to simply pay another company to manufacture for you, everything is already set up and it’s completely hassle free and peace of mind for you. However you will pay for the privilege, while there are no upfront costs like creating your own plant, you will pay extra every time you make an order. But you don’t have to worry about staff, employees, equipment or anything else- it’s all taken care of by them. So it’s all about working out which would be best for your business and budget cost- wise.


Running your own manufacturing plant is a huge job. Along with plenty of money, the right equipment and staff- you need the right premises too. Factories generally require plenty of space which will mean more money on rent, unless you can afford to buy somewhere outright. You will need to spend time carefully choosing materials, if you look at the 6061 aluminum properties found here for example you’ll see even picking the right kind of metal can be a task in itself. The thing with outsourcing is that all of these issues are tackled for you, so it’s less to worry about. If you want to stay in-house, make sure you’re not overlooking anything important.

Health and Safety

Every workplace has health and safety concerns, even in an office (just about the safest place you can work!) people have the potential to slip or trip, fall down stairs or cut themselves on things. But when it comes to manufacturing, health and safety can be a logistical nightmare. When you outsource, it’s the other companies job to ensure all of this so again is something you don’t need to worry about. But it’s not impossible if you want to keep it in-house. Make sure you’re up to date with all health and safety laws and ensure all protocols are followed. The last thing you need is a lawsuit on your hands where someone was injured due to procedures not being followed properly.

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