Drawing insights from industry trends we can see several indicators for the manufacturing landscape in 2024. Economic uncertainty, supply chain disruptions, sustainability pressures and the need for product innovation mark it. Further, DIY automation is emerging as a key trend, making automation more accessible and cost-effective for businesses of all sizes.
In this landscape, Original Equipment Manufacturers (OEMs) face an uphill battle to remain competitive. As the demand for sustainability and ethical sourcing rises, costs associated with manufacturing processes are escalating. In this scenario, OEMs must explore innovative strategies to cut costs without compromising quality or efficiency.
It’s only natural in situations like this that companies look to partner with outside help to relieve some of this burden. This is where RiverSide Integrated Solutions (RIS), a full-service contract manufacturing company, steps in as a game-changer. But first, let’s look at some issues in greater detail.
RISING COSTS AND COMPLEXITIES
As we ring in 2024, the manufacturing industry grapples issues from many different directions. These include economic uncertainty, skilled labor shortages, targeted supply chain disruptions and the imperative for innovations to meet net-zero emissions goals. In this scenario, costs are rising upward, driven by several factors.
TECHNOLOGICAL ADVANCEMENTS
Staying current with machinery and new technology is crucial for remaining competitive. However, the costs of adopting and integrating new technologies into manufacturing processes continue to rise. It isn’t feasible for OEMs to invest in every piece of new technology.
OPERATIONAL EXPENSES
Day-to-day operational costs, including utilities, maintenance and labor, are rising, putting additional strain on budgets. If OEMs want to stay in the game, they must streamline operating costs and increase efficiency.
SPACE RENTAL RATES
OEMs that want to do all of their manufacturing in-house need to continue to add space as they grow. And as the demand for manufacturing space increases, facility rental rates are escalating. This creates further financial burden.
LABOR COSTS
Every new technological innovation brings new heights in what technology and manufacturing can achieve but also requires more skill. And with skilled labor in high demand, salaries and wages are ever-increasing. This adds to the overall cost of production.
SOURCING CHALLENGES
An OEM might negotiate a specific price for a part with a procurement agency. But what happens when that part isn’t available? Or if the agency they work with raises its prices? Sourcing for parts and alternative components has become more complex, driven by global economic shifts and supply chain disruptions. This puts more strain on OEMs’ work to bring parts in internally.
In such a challenging environment, OEMs must devise strategies to contain costs and streamline their operations for maximum efficiency.
THE IMPERATIVE OF REMAINING COMPETITIVE
To thrive in this challenging environment, OEMs must find innovative ways to reduce costs while maintaining quality and efficiency. One powerful solution is to leverage the services of a full-service contract manufacturer like RiverSide Integrated Solutions (RIS).
Contract manufacturers partner with multiple OEMs to produce their products, gaining experience in many different areas along the way. At RIS, we offer 40 years of experience in the manufacturing industry. Years of experience that we use to help our customers reach success. When it
comes to rising costs and complexities, we have the skills to help OEMs achieve maximum efficiency.
HOW RIS CAN HELP
BUNDLE AND SAVE
We offer a one-stop-shop advantage. At RIS, we aren’t limited to just manufacturing or subassembly. We can manage the entire process from part procurement to final customer delivery. This consolidation eliminates the need for multiple suppliers, saving money and labor on the overall process.
PURCHASING POWER
Our bulk purchasing power allows us to acquire parts in large quantities. Because we buy for multiple clients at once, we gain cost savings that we pass on to our customers.
EXPERTISE AND KNOWLEDGE
Contract manufacturers, by focusing intensively on procurement, assembly, testing, and training, amass a wealth of technical knowledge. This knowledge is then applied strategically to the advantage of each customer, resulting in optimized processes and product quality.
At RIS, we’ve been doing what we do for 40 years! We have the know-how and the skills to keep your manufacturing operations on track!
INVESTMENT IN TECHNOLOGY
By spreading capital and operational expenses across multiple clients, we maximize the use of technological and functional upgrades. This ensures optimal efficiency, quality and automation, translating to cost savings for the OEMs.
DESIGN OPTIMIZATION
We collaborate with OEMs to identify improvements in design for manufacturability and assembly. This proactive approach minimizes rework waste during the product and assembly, optimizing efficiency.
A PARTNER FOR SUCCESS
In the face of escalating challenges, OEMs partnering with contract manufacturers like RIS find a strategic advantage. RIS offers cost-effective solutions and operational efficiencies that are crucial for success in today’s competitive landscape. We do this through our comprehensive approach and by leveraging the collective strength of a diverse customer base,
The key to unlocking cost efficiency in manufacturing lies in strategic collaborations with full-service contract manufacturers like RIS. The evolving landscape demands a holistic approach that streamlines operations, optimizes costs and positions OEMs for sustained success.
About RiverSide Integrated Solutions:
RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.
With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.
As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.
Our total-package solutions include:
- Dedicated Program Team
- Extensive supply-chain network for efficient parts procurement and kitting
- Subassembly and full box-build
- Warehousing and drop-shipping capabilities
- Reverse logistics
- Flexible order fulfillment
- Scalability to meet your needs
Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.
