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Electronic Contract Manufacturing (ECM) refers to a variety of services that may include engineering design, PCB fabrication, subassembly manufacturing, turnkey or box builds, functional testing, distribution and order fulfillment on behalf of OEMs (Original Electronic Manufacturers). Electronic contract manufacturing may be utilized as either a supplement to or as a replacement of company-owned manufacturing operations.

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Electronic Contract Manufacturing has been known historically to dramatically reduce supply chain costs, in some cases cutting them in half. ECM has made it possible for companies to shed all or most of their own internal manufacturing facilities thereby freeing their valuable company resources for other productive business purposes. In some cases, Electronic Contract Manufacturing has enabled companies to operate without the need for internal manufacturing capabilities or internally-managed factories.

Many companies may choose to outsource their well-established longstanding products to an Electronic Contract Manufacturer, thereby allowing for a greater focus on internal operations for newer products of greater complexity which may have higher margins.

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The appeal of Electronic Contract Manufacturing is primarily associated with makers of high volume products such as cell phones, telecommunications hardware, computers, automobiles and a variety of other electronic products. Manufacturers of instrumentation products, medical devices, LED lighting products and fiber optic components are increasingly finding the option to be superior with respect to cost-effectiveness. A company that offers Electronic Contract Manufacturing may perform any or all of several specific duties that include product design, prototype builds, high volume manufacturing, global logistics and distribution, electronics supply chain management and even repair services.

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