Guide to Outsourcing Assemblies and Sub-Assemblies

As OEMs begin scaling production, they often encounter resource ceilings, bloated vendor lists, and internal inefficiencies. That’s when it’s time to rethink your approach.

This free guide walks OEMs through the powerful benefits of outsourcing complex, labor-intensive, or multi-disciplinary assemblies and sub-assemblies to a qualified contract manufacturing partner.

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What Are Assemblies and Sub-Assemblies?

  • Assemblies → Finished systems or enclosures that integrate mechanical, electrical, and software elements into a working product.
  • Sub-Assemblies → Modular builds that feed into a larger assembly—frames, panels, PCBA + wiring bundles, motion systems, etc.

Both are labor-intensive, quality-sensitive, and increasingly specialized. They demand repeatable process control and program management.

 

Why OEMs Outsource Assemblies

Outsourcing assemblies isn’t just about cutting costs—it’s about making smarter use of time, space, and talent. Our guide walks you through the five major advantages of contract assembly, including:

  • Lower Labor Costs & Higher Productivity: With burden rates exceeding $150/hr at many OEMs, outsourcing can save up to 50%. Redirect skilled labor to more strategic activities while your partner handles repeatable builds.
  • Reduced Overhead & Hidden Costs: Reallocate supervisors, planners, and inspection personnel. Shrink your real estate footprint and eliminate wasted time managing dozens of part vendors.
  • Simplified POs & Supplier Management: Stop issuing dozens of POs for subcomponents. One turnkey supplier means fewer touchpoints, faster builds, and less administrative overhead.
  • Greater Build Consistency & Quality Control: Leverage documented work instructions, functional testing, and trained personnel for better reliability across builds.
  • Room to Scale—Without the Growing Pains: Avoid the need for more space, staff, and scheduling chaos. Let a vertically integrated partner handle it all under one roof.

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Is PEKO the Right Fit for Your Assemblies?

PEKO supports OEM outsourcing assemblies that require:

  • Thousands of assembly hours per year
  • Mechanical, electrical, and control system integration
  • Low-to-medium volume builds with high variability
  • Traceability, testing, and configuration management
  • U.S.-based fulfillment and discreet logistics

From pilot runs to full-scale production, PEKO delivers program-managed contract assembly solutions tailored to your manufacturing goals.

Discuss Your Project with PEKO

 

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