We received responses from 223 qualified individuals who provided responses to a short online questionnaire. Based on responses and feedback, it’s clear that working with a contract manufacturer affords companies flexibility to focus on other business and operational priorities. Results are presented via a series of graphs on the following pages. Here are some highlights:
About 37% of respondents said they have been working with their current contract manufacturing partner for 1-5 years, while 26% said the relationship has been more than 10 years.
A lack of resources/expertise continues to be the most cited factor in deciding to outsource manufacturing (38%), followed by cost savings (28%), and the ability to focus on other business priorities (25%).
About two-thirds (67%) said they conducted an onsite inspection of their contract manufacturer’s facilities within the last year, 16% within the last 5 years; meanwhile, 13% said they have never inspected their manufacturer’s facility.
Overall, quality certifications was the most important factor respondents cited when deciding which contractor manufacturer to partner with (42%).
When asked to explain how working with a contract manufacturer improved or affected their business, the vast majority of open-ended responses were positive. Respondents often cited flexibility and efficiency, along with cost savings and better resource management. Here are a few of the anonymous responses in their own words:
- “Significantly improved in the production and performance of the company because there is no need to make heavy investments to increase production.”
- “Tremendous help as we do not have the resources nor the expertise of manufacturing. Also, the CMO has innovative dosage forms which facilitate better marketing of our products.”
- “Allowed for the much more efficient use of capital and time.”
- “They have freed up our internal manufacturing to focus on higher value-added opportunities.”
- “It allows us to deploy resources to innovation, sales and marketing, and scale our business much faster.”
- “Focusing on quality contract manufacturers that are flexible and responsive have been key. We appreciate working with a large organization with significant resources but still responsive to us as a small company.”
- “It has allowed us to focus in areas of growth with marketing and sales without having to create a manufacturing environment from scratch. It has opened up additional opportunities with other product lines and is allowing us to scale up at a much faster rate.”