When You Should Outsource Your Injection Moulding Needs (And When You Shouldn’t) 

When You Should Outsource Your Injection Moulding Needs (And When You Shouldn’t)

Without question, injection moulding is a fast and efficient way to produce plastic parts, from tiny electronic connectors to large automotive bumpers, especially for mass production. The tool is composed of two parts: the core and the cavity. These two halves of the mould converge, and molten plastic is injected into the machine. The process operates in a rapid, repeatable cycle, which is key to its efficiency. Every part produced is virtually identical, curtailing quality control issues and guaranteeing precision, even with complex geometries. That’s just a high-level overview, yet the principle should be evident. 

You can produce core product lines in-house, in other words, within your own facilities, and outsource the production of non-core lines to a network of vendors. These peripheral offerings aren’t directly responsible for revenue or competitive advantage, even if they’re essential for running the business. Suppose they require specialized manufacturing capabilities that your company doesn’t possess. In that case, the production of these lines should be outsourced to external suppliers or contract manufacturers to free up time and resources for more critical tasks. You can produce a large number of plastic parts without the capital commitment required in wholly owned manufacturing. 

When Outsourcing Injection Moulding Becomes The Best Move 

Companies across different sectors, sub-sectors, and value chains use injection moulding for plastic parts that are precise and consistently uniform. Applications include but aren’t limited to wire spools, automotive parts and components, bottle caps, toys, storage containers, and musical instruments (or parts of them). They are the direct result of specialized engineering expertise and extensive research and development efforts. Any business process, irrespective of complexity or industry, can be outsourced at a lower cost. Inevitably, this leads to the question of when to outsource production to an injection moulding company. Let’s examine a few common scenarios when outsourcing becomes the most practical solution. 

Cost Efficiency

By distributing the initial tooling expense over highvolume production, the perunit cost is substantially reduced. Once the mould is created, production runs with a high degree of automation, ensuring maximum efficiency. Outsourcing helps you avoid the initial investment and ongoing fixed costs characteristic of setting up a dedicated facility. Not all injection moulding functions are equally suitable for outsourcing. 

Access To Expertise

Injection moulding is a highly technical process that calls for specialized knowledge and expertise. By tapping into outsourced talent, you can augment your existing teams and access specialized skills, scaling your workforce according to project demands. Outsourcing to an external supplier or contract manufacturer means more than accessing equipment. It’s tapping into a company built entirely around the craft of injection moulding. The overall injection moulding market is expanding, pushing more organizations to outsource to specialized firms to meet demand. 

Scalability

By partnering with a trusted injection mould maker such as HSV TMP (https://www.hsv-tmp.com/), you can manage an increasing volume of work without sacrificing quality or efficiency. In essence, this means you can handle small prototype runs as well as mass production while maintaining precision, consistency, and cost-effectiveness. Outsourcing transforms a fixed, highly capitalized asset – i.e., the factory – into a variable cost service, unlocking production agility that few in-house operations can replicate. 

Speed To Market 

Combining design and tool launch experience with proprietary techniques, the third-party manufacturer greatly speeds up the process, getting you to market faster. In an increasingly globalized market, competition is drawing closer because more businesses are entering the space, and being the first to introduce a product or a part can make. Just think about it. You can establish exclusive contracts or the most favourable positions with key distributors, retailers, or B2B customers. 

Quality Assurance

Last but certainly not least, delegating the specialized task of injection moulding can improve the efficiency and quality of work of in-house employees, who can focus on the tasks that directly generate value and fall within your company’s core mission. More exactly, your engineers are liberated from the complex, time-consuming details of managing moulding machines, tooling maintenance schedules, addressing plastic flow challenges, and overseeing resin inventory management. This allows them to focus on product innovation, research and development, and nextgeneration design.

When Outsourcing Injection Moulding Just Doesn’t Make Sense

If you’re used to controlling every detail of a project, it doesn’t make sense to outsource injection moulding because it’s a process where control over variables directly impacts the quality of the end product. Handing it off to an injection moulding company means giving up influence over tolling design and maintenance, material selection and handling, process parameters, quality assurance, production scheduling, and IP protection. Put simply, outsourcing introduces layers of dependency and uncertainty that keep your mind at war, not at peace. For components tied to defence, national security, or sensitive proprietary industrial systems, you may legally or strategically need to keep manufacturing within your own facilities.

At a certain high-volume threshold, the economics can shift back in favour of in-house production. If your product demands near-continuous, 24/7 production over the years, you reach a point where you operate at 70% of capacity or more, which is enough to absorb the fixed costs. Ceasing and restarting processes would be inefficient and costly, to say the least. As production volume grows, you can bypass supplier markups, administrative overhead, and logistics costs associated with external partners. By managing the process internally, you can optimize material usage and minimize waste through immediate feedback loops, not to mention retain control over valuable scrap material. 

Concluding Observations 

Even if an activity is deemed a good candidate for outsourcing injection moulding, you should still take into account corporate objectives, perform a risk assessment, weigh costs/benefits, and consider tax, legal, procedural, security, and confidentiality issues. While you don’t necessarily need an exit strategy, it’s recommended to have one, especially for critical long-term arrangements. It should be detailed and negotiated during the initial contact phase, when the relationship is strong, and both parties are motivated to agree on fair terms. 

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