The phrase denotes businesses specializing in production services, often located within a commutable or logistically advantageous distance from the client’s primary location. These manufacturers operate under contract, producing goods or components as specified by the contracting company. This arrangement allows businesses to outsource their manufacturing needs without significant capital investment in equipment or facilities.
Engaging a local source for manufacturing provides numerous advantages, including reduced shipping costs and lead times, enhanced communication due to proximity, and the potential for closer collaboration throughout the production process. Historically, companies sought geographically proximate manufacturing partners to ensure quality control and responsiveness, a practice that remains relevant in today’s globalized economy.
