Over the last decade, OEMs designing, building, and delivering complex electromechanical products have found it tough to maintain margins amid labour shortages and supply chain volatility. End-to-end outsourcing is an increasingly attractive way for OEMs to de-risk their manufacturing process while freeing them to concentrate on innovation and new product development. Here are six ways it can work for your business.
1. Access to specialist expertise amid a skills shortage
Complex electromechanical assembly demands skills which are increasingly difficult to find.
New research by The Manufacturer in the UK, lists skills shortages as the biggest single barrier to growth in the manufacturing sector:
Outsourcing electromechanical assembly to companies with multiple facilities in talent hotspots can give OEMs access to a pool of international specialists that can be deployed at will and often across borders.
It’s a highly scalable alternative to maintaining an in-house production team where demand fluctuates and staff turnover remains stubbornly high.
Read our blog for more insight into the recruitment dilemmas and solutions facing OEMs trying to build internal manufacturing teams in 2025.
2. Streamlined supply chain management
Mechatronics involves complex, multi-tiered supply chains that can be expensive and difficult for OEMs to manage independently.
In fact, a survey conducted by the Association of Supply Chain Management (ASCM) with KPMG found that 65% of supply chain professionals rated their work as "stressful" or "very stressful." The main sources of stress included dealing with supply chain disruptions (69%) and managing internal conflicts (50%)
Further research indicates that 91% of supply chain professionals believe their businesses cannot get ahead of major global supply chain challenges with their current technology setup and partnerships.
In mechatronics, you need expertise that stretches across multiple disciplines, including mechanical, electrical, and software domains. From managing electronic component obsolescence to securing the just-in-time delivery of sheet metal and machined parts - you need to be continually on top of diverse suppliers to ensure you are delivering big projects with maximum efficiency.
And how about securing access to the cutting-edge optical sensor technology that can drive your mechatronic products? Relying on multiple suppliers to deliver the bespoke MOEMS you need can become a nightmare of specifications and coordination. But choosing a partner with the right blend of facilities and skills could mean they can supply both the complex electronic components and integrate them with the mechanical hardware — minimising the risk of miscommunication and misalignment.
While rare, there are EMS that can coordinate all these activities leveraging multiple skill sets and economies of scale to bring you the best value.
3. Cost efficiency and margin reduction
Rising raw material costs, logistics expenses, and margin stacking — caused by markups across multiple subcontractors can inflate production costs and impact competitiveness.
Integrated outsourcing partners consolidate services like design for manufacturing, assembly, and quality assurance under one roof, eliminating intermediary markups.
This approach reduces overheads for clients, improves cost predictability across the board, and enhances overall profitability.
Read more about avoiding margin stacking through end-to-end outsourcing here.
4. Adapting to the pace and cost of change
Keeping factories up-to-date with the latest technology is an expensive and multipronged challenge.
In the realm of mechatronics, requirements can span a wide spectrum—from large-scale construction facilities for complex assemblies to precision equipment for microelectronics and optical systems.
Outsourcing can provide OEMs with access to these diverse capabilities without the prohibitive costs of developing and maintaining in-house facilities. Specialised contract manufacturers, equipped with state-of-the-art machinery and scalable infrastructure, enable OEMs to meet the challenges of mechanical engineering and small-batch precision manufacturing without the CAPEX outlay.
By leveraging external resources, OEMs can focus on their core strengths, reduce lead times, and remain competitive in a rapidly evolving industry. This approach also allows flexibility to scale operations as needed, providing access to cutting-edge tools and expertise across the full spectrum of manufacturing demands—from macro to micro.
5. Improved quality control and risk mitigation
Mechatronic systems demand rigorous quality standards to prevent costly failures, recalls, and warranty claims. Meeting these requirements in-house calls for substantial resources and specialised expertise, which can divert your focus from innovation.
Outsourced partners, however, can offer advanced quality management systems, recognised certifications (e.g., ISO 9001, ISO 13485), and comprehensive testing protocols - ensuring seamless support for existing projects and enabling faster expansion into new markets.
With established quality teams ready to implement tried and tested CAPA (Corrective and Preventative Actions procedures - you can reach your quality goals and objectives faster and with more confidence than building a QA process on your own.
6. Logistics
Fluctuating market demands, product complexity, and global logistics increase the strain on internal operations and transportation.
Partners with global footprints can manage complex logistics, including custom packaging and optimised shipping routes, ensuring timely delivery and reduced transit risks. Their expertise in compliance with international regulations supports smoother global market access and minimises delivery delays. A knowledgeable assembly partner should also be able to perform Value Analysis on your entire delivery chain, identifying cost-saving opportunities without compromising safety or product integrity.
Read more about derisking your mechatronic logistics process through end-to-end outsourcing.
But who can deliver for you?
The benefits of outsourcing the assembly and distribution of large-scale electromechanical products may be increasingly apparent, but finding the right partner to undertake this role can be challenging.
ESCATEC is one of the few EMS providers that are able to offer the combination of electronic, electrical, and mechatronic capabilities with facilities to build and deliver complex, integrated products across the world on behalf of their customers. With their combination of international expertise, localised supply chains and manufacturing facilities, they can help you think global and build local.
Case study - delivering large-scale mechatronics to order
One leading FMCG packaging OEM partnered with ESCATEC to deliver their customised packaging machines within 24 hours, to locations across Europe. By refining the efficiency and precision of their operations, ESCATEC helped the OEM achieve its goals.
Here’s how we delivered:
- Optimised procurement: ESCATEC leveraged data-driven forecasting to secure stock levels, minimise commitments, and ensure readiness for peak demands.
- Streamlined production: Established lean, 10-stage assembly lines backed by Kanban systems and rigorous testing to guarantee quality and efficiency.
- Flawless fulfilment: Branded packaging, same-day order processing, and direct shipping to end users—all managed by ESCATEC’s dedicated team.
Results that matter:
- 800 finished machines shipped monthly.
- 20,000 spares dispatched per month, drawn from 2,000 SKUs.
Conclusion
By outsourcing their mechatronic assembly and delivery, OEMs can gain not only technical and operational advantages but also robust supply chain resilience. From material sourcing to streamlined logistics, outsourcing ensures projects stay on track, costs remain predictable, and customers receive high-quality, compliant products. Strategic outsourcing frees OEMs to focus on innovation and market growth while navigating the complexities of modern manufacturing.
There are not many EMS partners who can bring this sort of coverage to their OEM clients, but the rewards for companies who find the right match are considerable.
