Subcontracting manufacturing services.
Also known as contract manufacturing or private manufacturing, involves outsourcing either a part or all of your manufacturing processes to an external company, which becomes your subcontractor.
Here are some reasons why businesses opt for subcontracting:

• Increasing Production: When your in-house production capacity is maxed out, subcontracting allows you to boost output without taking on excessive debt or capital risk.
• Efficient Capital Allocation: Instead of investing in new facilities, subcontracting serves as a stepping stone to accumulate capital gradually.
• Responding to Demand Spikes: Subcontractors can quickly adjust production to meet sudden increases in demand.
• Reducing Labor Costs: External manufacturing can be cost-effective, especially for specialized tasks.