6 Reasons Manufacturing Yourself Might Make Sense
After building two manufacturing plants and watching competitors succeed and fail, here's the unfiltered truth: While some rush to outsource everything, in certain instances, there are strategic reasons to control your own manufacturing destiny. Here are some of the benefits that I've found in doing so.
1. You Control Your Own Destiny
When you handle production, you're no longer at the mercy of third parties or endless delays. You’re the one calling the shots, with complete control over the timeline and quality.
2. Margins That Make Investors Drool
By cutting out middlemen, you can significantly increase your profit margins. Why settle for small gains when you can keep more of the pie? Note: This only occurs if your manufacturing at or near capacity.
3. Agility to Pivot Quickly
Want to test a new product variant? While others wait weeks for samples, you can prototype in hours. Your factory floor becomes your lab where real innovation happens daily, not quarterly. We once turned a customer insight into a new product line in 72 hours. Try that with contract manufacturers.
4. Protect Your Intellectual Property
By manufacturing your own products, you ensure that your designs and innovations remain securely under your control. No need to worry about unauthorized leaks from third-party factories.
5. Hands-On Expertise
When you’re involved in the production process, you develop a keen sense of what works and what doesn’t. You’ll be able to spot industry pitfalls and make informed decisions that others might miss.
6. Earn Major Credibility
There's something magnetic about companies that make their own products. The best talent wants to join you. Customers trust you more. Investors value you higher. You're a maker, a builder, an moonshot that works.
Building your own manufacturing operation is one of the hardest things you'll ever do. It's expensive, complex, and at times utterly maddening. If you're ready to play the long game? If you want to build something truly valuable? Sometimes the hardest path is the one worth taking.
Just make sure you know what you're getting into. Because once you start, there's no going back.