Released on October 10, 2011

Manufacturers have increased their outsourcing investments to companies like metalcasting facilities in 2011 and plan to continue to do so through the end of the year, according to a survey by software provider Arena Solutions, Foster City, Calif.

Answering the “2011 Arena Solutions Manufacturing Outsourcing Survey,” 42% of respondents said they planned to add one or more contract manufacturers in order to diversify or add capacity by the end of 2011. Almost 50% of the manufacturing companies in the survey indicated they planned to introduce new products in their current market, 39.7% said they would introduce new products in new markets and 46.1% said they planned to expand into international markets.

The survey was conducted by Arena Solutions between May and June of 2011 with 1,004 participants from a variety of manufacturing segments, including industrial parts, high-tech components, medical devices and consumer products. Most of the companies surveyed were from the U.S. A smaller number were from Europe and Asia.

According to the authors of the study, the manufacturers’ willingness to increase outsourcing indicates they are optimistic about the economy, but the survey respondents also indicated mixed feelings about the effectiveness of their outsourcing strategies.

“In general, relationships between original equipment manufacturers and contract manufacturers can be challenging to maintain,” wrote the authors. “Additionally, many mid-market OEMs struggle to attract contract manufacturers that can meet their current needs, as well as scale up with them when business expands.”