Contract Manufacturing (CM):

Contract Manufacturing (CM) is defined as a firm that manufactures components or products for another "hiring" firm. It is a form of outsourcing. The practice of utilizing contract manufacturing relies on the manufacturer's ability to drive down the cost of production through economies of scale. It also allows the hiring company to obtain the needed components or products without needing to own and operate a factory. Many industries utilize this process, especially the aerospace, defense, computer, semiconductor, energy, medical, food manufacturing, personal care, and automotive fields.

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