OEMs and service centers have definitely changed their business model over the past few decades. There are still a few large factories around, but most companies prefer to have a leaner operation these days to keep their costs down, and outsource their parts and materials to companies that can do the job faster, and at a lower cost.

OEMs and service centers are under constant pressure to keep their per-unit costs competitive without raising prices. What this means is that the only way to improve their profitability is finding ways to lower their manufacturing costs, order turnaround times, or, ideally, both.

Most OEMs and service centers understand the pressure to increase both productivity and growth to stay competitive. If your operation is too bulky and your profit margins are too tight, your business will suffer. That’s why an increasing number of manufacturers are looking to lean manufacturing as a means of doing more with less.