What are the Benefits of Outsourcing Wood Components?

When you are working on a new project, you are always on the lookout for ways to save time and money without sacrificing overall quality.  

There are a handful of ways you can achieve this, but one of the most effective methods is outsourcing components. 

When you outsource components, you gain numerous benefits including a reduction of overall costs, smaller inventory requirements, and more lead time on your production process.  

When searching for components to outsource, producers often overlook wood components.  

Don’t be fooled! Outsourcing your wood components can be majorly beneficial for any project.  

This post will quickly go over the top benefits of outsourcing your wood components to help you have more efficient and less expensive projects. 

Top Five Reasons to Outsource Your Wood Components for Your Next Project 

One thing to determine when looking to outsource is why you should outsource a certain product. In short, what are the benefits for you and your team? 

Let's quickly look at the top benefits of outsourcing wood components for your next project. 

Reduced Cost Upfront 

Outsourcing your wood components allows for a minimal investment of land, labor, buildings, machinery, and equipment. In simple terms, you have to spend less money on woodworking machinery. 

Quick changeovers and flexible production methods mean that not every manufacturer can justify an investment in expensive machinery. Instead, they save a ton of money by outsourcing their wood components.  

Better Return on Investment 

Return on investment is how you make money back after completing a project. When manufacturers outsource their wood components, they achieve a higher return on investment because they can better allocate their internal resources to design, assembly, finishing, and marketing.  

Accessibility to Specialization 

When you outsource your wood components, they are crafted by experts with access already to the best equipment around for the product. That means you are often getting a higher quality product than you would get if you produced your wood components in-house, with your current equipment. 

Big Savings on Transportation 

Lumber is heavy, bulky, and difficult to transport. That means you end up footing a big bill just to get raw materials.  

Typically, your job will only require a partial truckload of raw lumber. That means you are paying for empty space.  

Companies that specialize in producing wood components have full loads of lumber shipped to them consistently. Because of that, when you purchase your components from an outside manufacturer their purchasing power translates to a reduced transportation cost for you.  

Less Overhead Expenses 

The purchase of outsourced wood components gives you fewer overhead expenses without cutting down on your sales. Less machinery and raw materials mean fewer costs for inspection, supervision, insurance, and maintenance.  

This results in more time and talent directed at doing what you do best, creating finished products that your customers love.  

WPMA is Here to Help Your Wood Manufacturing Business Succeed 

The benefits of outsourcing your wood components are clear. Reduced costs, better returns, and fewer outside concerns like insurance and inspection. 

However, for wood product manufacturers, lower costs are not the only thing they need to succeed.  

Your business needs information and resources to truly thrive.  

That’s where the Wood Products Manufacturers Association comes in.  

It is our mission to provide your business with the tools it needs to succeed. That includes developing relationships with organizations that provide wood products and services that help our members.  

The staff and board of the WPMA are constantly working on developing programs and services that help wood manufacturing companies improve their bottom line and compete in a global economy. 

If you want to improve your wood product business, then it is time to reach out to Wood Products Manufacturers Association, WPMA, today! Contact our office at (978) 874-5445 for more information on what we can do to help make your business a success!