Contract manufacturing is a type of manufacturing process in which a company outsources the production of certain components or products to a third-party manufacturer. This type of manufacturing is often used when a company does not have the resources or expertise to produce a certain product or component in-house. Contract manufacturers typically specialize in a particular type of product or component, such as electronics, medical devices, or automotive parts. Contract manufacturers are often able to provide a more cost-effective solution than in-house production, as they are able to leverage economies of scale and access to specialized equipment and expertise.