Trading firms deal strictly in off-the-shelf products. They lack the QC, engineering support and depth of knowledge needed to reliably produce custom goods. Trading firms excel at using their low overhead to deliver commodity products, like disposable latex gloves or aluminum ingots, at rock-bottom prices.
Contract manufacturers build in-house capacity tailored to a specific product, rather than locating existing capacity or capability. The need to do everything in-house results in steep set-up costs and minimal flexibility. Contract manufacturers excel at highly complex technical projects, like computer components or cell phones.
Our “own the process” philosophy is to know everything but own few, if any, physical assets. We believe that intellectual property has much higher ROI than other forms of capital investment. Pairing intellectual property with our process driven approach has benefits across multiple projects and strengthens the firm by creating a virtuous cycle with our customers.