Contract Manufacturing Partnerships for OEMs

Original equipment manufacturers (OEMs) specialize in developing quality parts and sub-assemblies for specific businesses. Their work includes design, engineering, high-volume manufacturing, and assembly of parts and components based on customer demand.

Successful OEMs manage multiple components with large numbers of identical parts and can lead to part production numbering in the thousands to tens of thousands or much, much more. Managing this kind of volume requires them to plan for the lifecycle of the part, source raw materials, and forecast the overall production process for repeatability, high quality, and long-term sustainability.

The downside of this success is the inevitable strain on the OEM supply chain to meet production schedules, which often leads them to partner with a contract manufacturing business to provide materials, fabrication, and assembly for specific components along the way.

  • One example of such a partnership would involve an OEM that does not have the labor force to keep up with high-volume production. This spurs them to outsource certain steps in the fabrication process to receive parts on time. 
  • The OEM may want to avoid sizeable capital equipment investments. Utilizing specialized fabrication machines from an outside partner would be preferred over purchasing costly new equipment themselves.
  • As material costs rise and lead times grow, it’s important for the OEM to have a strategic procurement partner.  Contract manufacturers offer a qualified supply chain commitment to support the product life cycle.


For high-volume manufacturing to be sustainable, improvements in cost and efficiency can be significant when extended over thousands of pieces. The decision to work with a contract manufacturer allows the OEM to make the best use of their workforce, minimize capital investment, and reach their long-term production objectives.

O’Neal Manufacturing Services (OMS) is a supplier of fabricated steel components and welded assemblies. Our primary focus is to help original equipment manufacturers who are seeking a partner to manufacture parts, streamline in-house production, and produce locally at or below targeted costs. Specializing in parts that originate from medium to heavy gauge steel plate (1/8” or thicker), we have the skill, expertise, and state-of-the-art equipment to produce complex parts with tight tolerances with precision and accuracy.

Our business supports customers in a variety of equipment markets including agriculture, material handling, power generation, construction, elevators and moving stairways, forestry, industrial, mining, oil & gas, railroad, renewable energy, and trucks & trailers. O’Neal Manufacturing Services brings over 100 years of expertise to your manufacturing supply chain. We work hard to solve your unique design-to-manufacturing challenges and will create the most effective solution for your project.