Report Details: This report is based on analysis of financial balance sheet and income statement data for the period of 2000-2012 and interactions with clients in the contract manufacturing industry in supply chain strategy engagements.
Objective: To use financial balance sheet and income statement data coupled with recent research to better understand the state of contract manufacturing supply chains.
Hypothesis: Contract manufacturers are struggling. With slim margins, stagnant revenue per employee, and unstable growth from year to year, it is difficult to make improvements and undertake long-term commitments to improving their supply chain functions. Brand owners should understand the problems plaguing the industry and work to improve the partnership while also remaining cognizant of the fact that the contract manufacturing business model may simply not be viable in the long term.