Vertically Integrated & Turnkey Contract Manufacturing Services

PEKO's Suite of Contract Manufacturing Services to Design and Build Your Major Mechanical Assembly in a Seamless Process

What is Contract Manufacturing?

Contract manufacturing is the process where a company outsources its manufacturing to a third-party organization. Many small businesses, start-ups, or even large companies opt to work with a contract manufacturer since it can be far less expensive than handling the manufacturing themselves. Contract manufacturers have the skill set, experience, and sound infrastructure required to manufacture goods for other companies. They can focus their efforts on optimizing production, lowering costs, and managing the intricacies of running a fully functioning factory, which allows the outsourcing company to focus its efforts on marketing and selling its products.


Managing processes, ordering parts, and coordinating manufacturing duties is an exhausting and expensive process. If your company has outgrown the local fab shops, it might be time for one turnkey contract manufacturing company to completely handle your project to completion. For those program managers dealing with a handful of suppliers and frustrated with managing different deadlines, wouldn’t you want to leave that headache to one company to oversee? A contract manufacturer like PEKO does the hard work for you. Whether we’re manufacturing machinery, equipment, or instrumentation, our customers put their trust in us for both design-and-build and build-to-print manufacturing.

Download our free checklist on what to look for when comparing contract manufacturing companies

Now more than ever, a common question companies that want to produce and sell machinery, equipment, instrumentation, and other major mechanical assemblies is “How will I make my product?” The investment involved with setting up an entire manufacturing operation is an enormous barrier to making the OEM product in house. Inevitably, “finding a contract manufacturer” is the answer for many companies. But landing on that square is just the beginning.

Contract Manufacturing Guide

Design-and-Build & Build-to-Print

Vertically Integrated Contract Manufacturing Solutions

As soon as we initiate a contract with a customer, that company has peace of mind knowing that PEKO is fully prepared to take over the management of their major mechanical assembly, regardless of its stage in the manufacturing process. Our wide range of contract manufacturing services provides our OEM customers with everything that they need to ensure their equipment is produced, tested, and shipped according to their requirements.

Whether your product is going into a first-time build, or you are relocating a legacy product to free up internal resources, PEKO can help. We provide build-to-print turnkey contract manufacturing services for our customers that are looking for help building their products. PEKO works with your team directly, compiling your existing prints, BOMs, and tribal knowledge. Our program managers take the time to understand your:

  • Specifications
  • Requirements
  • End-User

Build-to-Print Contract Manufacturing

Once we have all product and manufacturing knowledge identified, we develop a manufacturing process that achieves the quality, lead time, and performance that our customers desire. Our build-to-print turnkey contract manufacturing solution has helped our customers with hundreds of projects. Some OEMs are simply looking to free up internal resources so that they can focus on their own core competencies. Others simply don’t have any manufacturing resources at their disposal.

OEMs that choose PEKO realize the advantages of outsourcing entire products and their assemblies so that they can enjoy a dramatic reduction in supply chain management and focus on the most important aspects of their business.  Whatever the reason may be, PEKO will create a successful manufacturing plan to build your machinery, equipment, and instrumentation in our state-of-the-art facilities.

Design-And-Build Contract Manufacturing

Not every design or prototype is completely ready for production or even manufacturing, but that doesn’t mean there isn’t an answer. PEKO has a fully staffed engineering team to help with design updates. This team specializes in the initial development, but also helps with early-stage production and design for manufacture and assembly, or DFMA.

Our engineers have had years of experience:

Our design-and-build commercialization service is the steppingstone for OEMs who have a design that’s nearly complete but still needs a skilled team to ensure it’s both validated and production-ready.  Let our team of seasoned machinery designers finish your design and prepare it for the production stage.

Case Studies

Blog Post
Full-Service Manufacturing: What It Means & Why it Matters

Contract Manufacturing Experience

New clients interested in working with PEKO are reassured of our ability to take on and execute “ground-breaking” projects. We’ve spent over 50 years in the contract manufacturing industry and have had experience dealing with the unfortunate obstacles that arise in any manufacturing setting. With this past experience in mind, we now have backup plans in place, in case of the inevitable, to ensure a smooth manufacturing cycle for our OEMs. We’re fully prepared to be your partner of choice when it comes time to outsource your manufacturing.

Diverse Set of Industries Served

Here at PEKO, we have been fortunate enough to work with some of the most high-tech industries out there, which have paved the way for our immense qualifications when working with potential clients. These industries have some of the most stringent regulations in terms of quality control and can display their own difficulties through each stage of our product development cycle.

The specific industries that we have had proven success with include:

Industry Certifications & Compliance

Not only have we mastered such rigorous industries, but we’ve also obtained a few certifications along the way to ensure that our service offerings are open to a wide variety of customers. Our certifications include:

  • AS9100
  • ISO 13485
  • ISO 9001
  • ITAR Company

PEKO is ISO 9001:2000 certified since 1996, ISO 13485:2003 for medical devices, and AS-9100: 2004 for the aerospace industry. Our ITAR registration specifies our compliance when working with companies in the defense industry. PEKO is also compliant with all NIST regulations and guidelines.

While some of these certifications correlate to the specific industry types that we serve, others were obtained so we can cater to any new potential customer base. These specific certifications provide us with the opportunity to work with many different types of OEMs while also maintaining our excellent quality control.

Product Development & Design Engineering Assistance

What if you still need some more work or just a bit of assistance with the design? Luckily, PEKO’s experienced, tenure engineering professionals within our new product introduction, or NPI, department are ready to take on any design challenge. We’ve had over 50 years of proven success with bringing designs to life once they hit production and assembly.

What’s more? PEKO doesn’t just assist with product design, but we make sure that your machinery is repeatedly manufacturable and has the proper planning to ramp up production once demand increases. Establishing a design that is manufacturable–containing clearly drawn prints and instructions–is one of the advantages that set us apart from competitors.

Blog Post
How Much Does Your Contract Manufacturer Know About Your Technology?

Manufacturing Capacity

Space Utilization & Resource Allocation

As a leading contract manufacturer, we’re extremely flexible when it comes to our production capacity. PEKO’s highly trained and dedicated staff is always monitoring our current space, employee, and resource allocation. This type of planning is extremely important when it comes to contract manufacturing, and our expertise in this area has played a big part in our long history of success.

As soon as we enter the negotiation stage with a potential client, our senior operations team begins assessing the current available machining and space capacity and will review any adjustments as needed. If all our current machines are tied up with current projects, then we immediately start the hunt for new machines and equipment that will be necessary to meet the demands of our new potential clients. Once a machine is ordered, then our industrial engineering team surveys facility floor space to make the proper room adjustments so that everything will fit inside a given facility.

After we’ve secured the proper equipment and machines necessary to complete both current and future jobs, then our senior management team begins allocating employees to the new tasks. We have a customer diversification strategy that designates the proper amount of attention to each customer, demonstrated in our ability to monitor both customer and industry concentrations, along with the overall industry trends, in order to allocate resources equitably.

Once projects or parts that make up a major mechanical assembly are complete, everything is stored in our integrated warehouse. PEKO’s storage facility encompasses 22,000 square feet of warehouse space, which is adjacent to one of our assembly buildings.

Blog Post
Assessing the Current & Future Manufacturing Capacity

New Product Introduction (NPI)

PEKO Onboarding Process: What It Means for Your Project

For early-stage projects that are still in the development stages, PEKO has a dedicated state-of-the-art facility that focuses on R&D and product development called the New Product Introduction, or NPI, division. Projects that fall into this category will go through PEKO’s proprietary onboarding process. This onboarding process is a case-by-case framework based on specific customers’ needs and the current state of the project that helps establish a strong foundation of critical parameters to execute their long-term goals. It includes one of the most critical steps in our operation.

Prior to defining a customer’s process, our staff management’s top priority is to fully understand the customer’s needs and long-term objectives to develop milestone goals that will move the project through the product development cycle and into production. Because each customer has their own individualized needs and goals, this process will look different for each customer that works with us, and our NPI engineers are fully prepared to lay the groundwork for the first phase of their project.

Here are a few examples of what this process may look like:

  • Sometimes, a customer comes through our door with only a concept or early-stage feasibility prototype and hasn’t truly vetted the technology yet. In these cases, PEKO will collaboratively engage with the customer and do a deep dive into the technology to ensure the critical parameters are fully understood and controlled, while simultaneously exploring the best approach to manufacturing. Our engineers are fully prepared to test a product’s functionality while gauging to what percent it functions. This instance would still include design work from our engineering staff.
  • In other cases, customers will arrive at PEKO with clearly defined prints, but have only had one or two machines built by a “small shop.” In these instances, PEKO engineers will work hard to make sure the prints can be brought to production readiness and support “scaled-up” production volumes when the time comes. This is to ensure exact repeatability is met when the equipment is introduced to a larger production climate. The methodology and approach taken to create one machine differs completely from what it takes to successfully create 10’s to 100’s of the same thing, with precise consistency.
  • Another instance is when a customer enters our doors with a product or technology that was manufactured by a third party, but unfortunately, the customer does not own the rights to the prints. Luckily for PEKO customers, all prints are the sole property of the customer. In these instances, PEKO engineers work diligently to reverse engineer the device so they can eventually create clearly defined prints.

Our engineering team works alongside our manufacturing and assembly teams, so you can rest assured that when your project has finished the onboarding process, it will be seamlessly transitioned to manufacturing, all while receiving excellent customer support.

Proven Success

PEKO has completed numerous development projects across every industry that begin with R&D and progress through to the commercialization and realization process. We have then taken these projects to full-blown production volume contract manufacturing.

Some of the projects we’ve nurtured through these stages include:

These projects all followed our initial development phase that coincided with product commercialization to include regulatory review, certification and were finally scaled to complete production volumes.

Blog Post
New Product Introduction (NPI) & Its Critical Impact in Contract Manufacturing

Design Engineering

Typically, our customers focus their R&D resources on their core science while our engineering provides the execution side of the technology. However, sometimes a customer will come to us with a concept seeking our assistance in design engineering.

A concept could exist in a 3D model, the back of a cocktail napkin, or even floating inside your head. No matter where that idea currently resides, we want to nurture it into a project with a clear definition, milestones, and final goal.

PEKO’s engineering development capabilities focus heavily on the commercialization of a product or process, and our engineers are backed by our manufacturing and production teams, so we have the advantage over companies that solely focus on designing.

Once a design is complete, the next step is proving the merit and functionality of the initial concept and refining it. During this process, critical parameters will begin to be defined with variables and parameters, and the technology and science of the product will be verified and optimized.

Even when customers come to PEKO with a fully designed idea, our design engineers still go through this process before plans for manufacturing take place. It is important to have dedication and focus through this refinement process, as it has proven to reduce design iterations and minimize the inherent circumstances that come along with the manufacturing process.

PEKO’s design engineering team always checks to make sure that everything on a print is specified before the information is sent off to our machinists and eventually assemblers. This is accomplished through the prototyping phase, where we finally turn the initial concept into reality.

The prototype phase can often require many trial and error tests before we are confident that we have executed the concept to its completion. Once we finally have the necessary knowledge to bring the design through the manufacturing process, all the processes in the design and bill of materials are clearly defined.

Specific applications for our NPI and development engineering expertise include:

  • NPI Development
  • Automation and Test Systems
  • Frame/Structural Development
  • Motion System Design
  • Thermal Analysis
  • Vision Systems
  • Valve Engineering
  • Design for Manufacturing
  • Design for Assembly

Our extensive level of design engineering skills and areas of discipline include complete electromechanical design, life testing, DOE, FMEA, FEA, regulatory, and more. Other specialties include:

  • Mechanical
  • Electrical
  • Software
  • Pneumatics
  • Hydraulics
  • Temperature Control
  • Robotics/Motion Control
  • Vision Systems
  • Reliability Engineering
  • Value Engineering
Blog Post
How Much Design Engineering Do You Need From Your Contract Manufacturer?

Intellectual Property (IP) Protection

Protecting Your Intellectual Property

As a manufacturing services provider, PEKO does not have–nor do we desire to have–any products of our own. This allows our customers to benefit from and protect all intellectual property, or IP, produced at PEKO.  All IPs will remain the property of our customers with NDAs covering all our customer relationships. In the past, PEKO employees have been named as co-inventors on some patents, but only per our client’s request.

Unlike a lot of contract manufacturers, we do not have any Asian operations that can be highly susceptible to IP theft. Our customers not only have peace of mind knowing that they are working with a proud, American-based company that operates strictly within the USA, but they also don’t fear the many cons that can come with offshoring manufacturing. Our vertical integration allows us to do a large amount of work in-house, resulting in far fewer people viewing your sensitive, proprietary information.

PEKO also takes extra internal measures to keep a company’s IP safe within our facilities. Because we work heavily in the defense industry and are ITAR certified, our strict rules and guidelines add reassurance to OEMs who are considering PEKO for the assembly of their instrumentation. Depending on the level of security needed to keep your information protected, we can even offer secured assembly areas that are closed off and separate from the rest of our assembly space.

We have a strict photography policy in place, and all our facility entrances are card entry for employees only, while visitors are required to sign in and out with our main receptionist. Visitors are designated a bright yellow lanyard so that they can be easily identified while inside our buildings and are prohibited from taking any photos. Even when a shipment arrives, truck drivers cannot enter our facilities and must wait until our shipping and receiving personnel can assist with unloading our shipments.

Furthermore, all PEKO employees are required to take a cyber-security training course each year, which is led by our IT department and coincides with a written test. In this training, employees are briefed on the importance of keeping information safe and best practices when it comes to email and sharing of information.  Our IT department is confident in the security of our server and can limit employee access to information that needs additional security.

Blog Post
Why You Should Work With a Contract Manufacturing Company that Offers IP Protections

Design Maturity / Product Lifecycle

Here at PEKO, we encourage customers to walk before they run. Before a piece of equipment can move to the production line, some prototyping and qualification builds are mandatory. Even when a design is well into its “mature stage,” in most cases there are still particularities of the build that must be performed and documented a few times to ensure that repeatability can be accomplished in the future. At this stage, high-level toolmakers and electricians are involved with both the onboarding and production teams so that high-quality builds can be ensured in perpetuity.

Machinery, equipment, instrumentation, and other high-tech assemblies typically share an attribute of electrical components. Sensors, PLCs, power supplies, vision systems, and other components are exceedingly common in such systems. Contract manufacturers for these types of builds must absolutely have a team of electricians, techs, and engineers that can ensure your product is brought to life properly in both the prototype and production phases. At PEKO, we are fortunate enough to have skilled, seasoned workers in all those disciplines.

Blog Post
Assessing Design Maturity for Machinery and Equipment in 3 Simple Steps

Assembly & Integration

Great Assembly Techniques for Low and Mid Volume Integration

You have a great idea or concept that you’re excited to have hit the market, but do you have the following:

  • A factory
  • The proper machinery and equipment
  • The mechanical assembly skills
  • A skilled and tenured workforce to manufacture and assemble

If you answered no to any of these, it may not make sense for you to build and manage an entire factory, which is where PEKO comes in. With all the problems that can arise in manufacturing, leave the “dirty work” to us–a company that has had over 50 years to master the art of contract manufacturing. OEMs who choose to work with PEKO have the luxury of spending their time and money on more important aspects of their business models. With decades of experience, PEKO plans for manufacturing obstacles before they arise, and still execute our tasks to meet our OEM’s deadlines.

Our core competency as a contract manufacturer is assembly and integration. And when you outsource to PEKO, we don’t just make sure that your machine will be assembled perfectly in our facilities, we make sure that the documentation will allow anyone to create an exact replica of a build should a customer choose to assemble elsewhere one day.

Decades of experience have taught us that the process of making one machine varies drastically from making hundreds of that same machine, and over time, we have learned how critical it is that a design’s prints, BOM, and work order instructions are exactly perfect. So, when customers engage with PEKO to utilize our assembly services, there is an initial onboarding process to ensure repeatability of a build, regardless of the maturity of the design.

PEKO maintains our full assembly and test capability with our highly competent technicians. We consider this to be a key area of expertise. And when an assembly, or sub-assembly, requires a stricter and climate-controlled environment, PEKO’s separate cleanroom assembly areas are the perfect fit. Customized clean rooms are available on a per-contract basis.

Beyond assembly, we are defining and executing detailed acceptance criteria daily. These acceptance plans are mutually developed with our customers to define what each party’s expectation of “good” means, early in the project. This definition provides clear goals necessary to execute. We also track our qualified technicians through a competency matrix to ensure proper skill sets are achieved and maintained.

Blog Post
Great Assembly Techniques for Low & Mid Volume Integration

Component Fabrication

We’ve come to realize the importance of in-house component fabrication capabilities and that they are typically involved in the manufacturing of machinery, equipment, instruments, and other major mechanical assemblies. PEKO’s in-house component manufacturing benefits our customers by allowing us to have excellent control over cost, quality, and lead time when things are needed at the assembly line.

PEKO proudly stands by our ability to do the following, in-house:

Blog Post
In-House Component Fabrication: How Precision Sheet Metal & CNC Machining Adds Irreplaceable Value to a Contract Manufacturer

Program Management

Service-Oriented Approach

Our project management approach is a customer service-oriented feature that ensures visibility and accountability at all levels within our manufacturing organization. It is one of our strongest attributes.

We provide a program manager for each program to provide a single point of contact for our customers throughout the duration of the project. Program managers, or PMs, provide leadership for each program, with access to all PEKO’s resources through senior management on a daily, weekly, and monthly basis. Each program is reviewed at least once per month and measured to drive success through planning and design.

Daily senior management reviews are available and are attended by PEKO’s dedicated program managers to properly allocate resources within PEKO at key points in the project. If any problems arise over the course of the program, our escalation plan establishes how significant problems and decisions should be addressed to keep the program on track, which provides clear visibility for both organizations.

Single Point of Contact

Because we provide a program manager for each program, there is a single point of contact for our customers throughout the duration of their project. This designated point of contact allows for simple, and easy communications. This is because, here at PEKO, we understand how critical program management is for a contract manufacturer’s success.

Our program managers oversee cost, quality, and delivery. This PM is a single point of contact for customer interface and is responsible for managing all the individual specifications and requirements inherent to the program. This means when a client of ours calls our company to check on the status of their program, they will always be put in contact with their allocated PM. PEKO clients never have to worry that they’ll be transferred across the switchboard or into different departments to receive an answer to their inquiry. A single point of contact saves time and energy for both parties.

Holistic Project Management

At PEKO, we understand that communication is everything when handling the management of your program to its completion. PEKO’s program managers work alongside PEKO’s upper management to determine the appropriate internal, or potential external, resources needed to constitute the program team. These dedicated resource personnel report directly to the PEKO project manager when addressing their related activities for the duration of the program. Daily senior management reviews are available and are attended by the Program Managers to properly allocate resources within PEKO at key points in the project.

Blog Post
How Program Managers Drive the Success of Your Project

Quality Control

Quality Systems

PEKO’s quality systems are one of the most important functions within our capabilities. PEKO’s quality management system utilizes the process approach from early product design and development, through program management and our manufacturing processes.

The quality system is set up to satisfy and comply with a wide variety of customer and regulatory requirements from the diverse industries we work within. Program teams are assigned by function and are dependent upon the type of industry. This allows for the utilization of specific team members with the knowledge and expertise unique to industry-specific requirements.

Our certifications include:

  • AS9100
  • ISO 13485
  • ISO 9001
  • NIST 800-171
  • ITAR Company

We are surveyed and audited over 20 times per year and continue to review and improve practices to ensure world-class standards are achieved across all programs.

Producing the Finest Products

At PEKO, we’re always working with an OEM to “define good.”  This contract manufacturing philosophy describes our ability to take a piece of sophisticated machinery or equipment, and formally agree upon all the attributes that must be satisfied before the product can be shipped. This is called factory acceptance testing, or FAT. Program stakeholders from both the OEM and CM are involved in this critical portion of the onboarding process.

Our quality performance metrics are determined by senior management and are then identified within each quality manual process map. Dependent on the process and pre-determined intervals (i.e. quarterly, monthly), process owners collect this data and forward completed reports to the management representative for review by senior management team members during monthly management reviews.

Nonconforming Product

PEKO utilizes a Defective Material Report, or DMR, database to record and track all “suspect” and nonconforming products identified by operators, technicians, and quality staff. Any product that does not meet our stringent standards is clearly identified with a red tag and moved to our designated controlled areas and into a DMR cage within 24 hours of identification.

All products in these areas are monitored and inventoried three times per week and a DMR Log is distributed throughout the organization. Engineering and Material Review Board, or MRB, members meet once per week to review, disposition, and determine whether any corrective action is required for the red-tagged product. Customer returns are also subject to these same controls, under our pristine quality system.

Blog Post
Attaining High-Quality Production Through a Robust Quality System