The very existence of AeTec International goes a long way towards answering this question. Our company was formed as a solution to improving efficiency by contract manufacturing. You can learn more about this by reviewing our company's history, but to make a long story short, AeTec proved itself by performing what had been in house processes as an outsource – reducing costs and improving product quality.

Outsourcing is a growing trend in the technology industry. Currently, companies in the US spend $96 billion annually on outsourced services. About a third of electronics manufacturing is outsourced. This is expected to grow to by more than half by 2005. Almost every company outsources something: payroll, tax management or benefits administration. All of these things must be done, but require specialized expertise. The trend, as companies realize the advantages, is that outsourcing will grow exponentially.

The production of ever-evolving products represents huge capital investments in equipment, facilities and workforce expertise. When manufacturing is outsourced, those costs are born by others. Without manufacturing responsibilities, customers focus on their core capabilities. Both the design and production of the product benefit from increased focus.

How can you benefit directly?

• Capital avoidance
  
• Increased capacity
  
• Cost reduction
  
• Increased inventory turns
  
• More effective resource utilization
  
• Better labor deployment
  
• Higher quality product
  
• Greater focus on core competencies

However, choosing the right processes to outsource is key. As examples, consider the processes AeTec is currently performing for other customers: PC Board Assembly, Solder Coating, Media Cleaning and Recycling, and Mark Plate Making.

What should you outsource?

• Any operation which is necessary
  
• Not a core capability
  
• Does not provide a strategic advantage by being done in-house
  
• Is not in and of itself perceived by your customers to be of high value

If you're considering outsourcing as a solution, contact us and we'll work with you in developing your outsourcing strategy. AeTec offers a complete partnership from design for manufacturability through worldwide distribution. Our goal as your partner is to produce your product better, faster and for lower cost than if you built it yourself.

How can you tell if outsourcing is successful?

• The total cost is less than it was to do yourself
  
• The quality of the overall service (on-time delivery, throughput time, and product quality) is higher than it was
  
• Outsourcing contractor is making a profit (so he will be there the next time you need him)

Quality is a major concern when choosing to partner with a technology manufacturing outsource such as ourselves. Visit the portion of our website that focuses on these quality issues called "Outdoing Ourselves: exceeding previous performance as a daily objective". It contains information on our ISO 9002; 1994 Certification; our ERP workflow processes; and our overall quality assurance measures including sections of our quality manual.

To make suggestions about our website or to give input of any kind, please contact us at info@aetec.com.

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