Outsourcing Industrial Production: What Strategy Should Be Adopted?

A shortage of skilled labor, limited production capacity, a full order book… To address these challenges, are you considering outsourcing the manufacturing of your custom metal parts? When faced with certain challenges, outsourcing industrial production can indeed be a strategic advantage. But you still need to make the right choices… What are the benefits and risks to anticipate? Should you outsource everything or just certain stages? Which external provider should you choose? As an industrial subcontractor specializing in metal fabrication, the Hexalean Group shares its industry expertise. Discover the answers to your questions to help you build an effective and sustainable outsourcing strategy to support your industrialization efforts.

Production outsourcing involves delegating industrial activities that are normally managed in-house to one or more specialized service providers.

Industrial subcontracting can be:

• Permanent or temporary.
• Partial or total. This involves outsourcing part or all of your production processes.

• 60% of the industrial companies surveyed use external service providers.
• Of these, 66% outsource activities directly related to their production process.
• The main reasons for outsourcing:
  To gain access to specific skills and compensate for a lack of internal expertise: 70%
  To refocus on their core business: 52%
  To shorten lead times and save time: 46%
  To reduce costs and increase margins: 27%

Source: Study titled “High-Value-Added Industry and Services,” conducted for the Joint Observatory of the Metalworking Trades and APEC in 2021–2022

• Solve your recruitment challenges by accessing, through your service provider, highly qualified professionals who are hard to find on the market: process engineers, certified welders, and more…
• Gain access to cutting-edge expertise and technology. You benefit from your subcontractor’s technical skills and high-performance machine tools.
• Gain flexibility without tying up capital or wasting time. No need to invest in new equipment or engage in time-consuming recruitment to meet your customers’ urgent or high demand!
• Sustainably boost your competitiveness by converting fixed costs into variable costs: no need to purchase specialized equipment or handle industrial maintenance, reduced labor costs…
• Focus on your core competencies: innovation, marketing… Outsourcing allows your internal resources to channel their expertise into the fundamental aspects of growing your business and contributing to the growth of your industry.

• Loss of control over your production processes. To maintain control over operations, it is essential to establish a rigorous contractual framework and ensure regular monitoring.
• Longer lead times for supplies. To ensure short lead times, the Hexalean Group is committed to continuously improving its processes by combining lean manufacturing and Industry 4.0.
• Dependence on the subcontractor. To avoid any bottlenecks, diversify your suppliers for critical parts. Another strategic solution: partner with a single provider like the Hexalean Group, which uses a multi-site model that combines production continuity with technical specialization.
• The risk of disclosure of your sensitive data and intellectual property. Be sure to include confidentiality clauses in your subcontracting agreement.
• Deteriorated part quality. This depends directly on the choice of subcontractor. Hence the importance of selecting a provider recognized for its expertise in metal fabrication, certified, and aligned with your requirements (quality control, traceability, tight tolerances, etc.). This is the case with the Hexalean Group.

Given these challenges, it is crucial to choose the best option for your company from among the two possible outsourcing strategies and the various specialized subcontractors.

This involves outsourcing certain production operations to an external service provider while keeping others in-house.

• Your internal capabilities (business expertise, industrial equipment) are insufficient to handle specific technical operations.
• Certain types of expertise are strategic to your industrial business. It is best to keep them in-house to protect this competitive advantage.
• Your industry faces fluctuations in activity: seasonal peaks, one-off orders, etc. These do not justify the permanent allocation of human or material resources (production teams, etc.). You need flexibility.
• You want to start with an outsourcing project to gradually test a partner and secure your subcontracting initiative. You first entrust them with a limited scope before considering a broader collaboration.

• Handle the final assembly yourself and outsource the production of the components needed to manufacture your finished products.
• Handle the design of the parts yourself and entrust manufacturing to a specialized subcontractor.
• Produce large volumes and outsource small batches or complex parts.
• Choose to in-house the production of standard parts and outsource certain high-value-added tasks: laser cutting or welding, 5-axis machining…

The concept is simple: you entrust every step of the process—from design and production to assembly and delivery—to a single partner.

• Your startup or small business doesn’t have the necessary production tools. You want to launch your business without making a major capital investment.
• Your manufacturing company is relocating production that was previously handled overseas (in Asia, for example).
• You’re launching a new product and would prefer to test the market before investing in your own equipment.
• You want to refocus on your core business (sales, R&D, etc.) by outsourcing your entire production to a partner.
• Your production equipment is reaching the end of its life, and replacing it in-house is not economically justified.

• Work with a specialized service provider that covers every link in the chain. They must be able to design, manufacture, assemble, store, and deliver (to your warehouses, as well as to job sites and your customers’ locations, both in France and internationally)… With its one-stop-shop offering and comprehensive support, the Hexalean Group is equipped to meet all of your needs.
• Ensure that your chosen partner can meet your technical and operational requirements: all production volumes, high levels of precision and technical expertise (all custom parts), and adherence to even tight deadlines…
• Check the subcontractor’s years of experience, certifications, QSE/CSR commitments, and references. Have they been in business long enough to have proven themselves? Are they ISO 9001 certified, a guarantee of high-quality standards? Can they demonstrate successful experience with a client in the same industry as yours (aerospace, food processing, construction equipment, road shoulders, etc.)?
• Formalize the partnership with a detailed full-service outsourcing contract and precise specifications (technical data)…
• Establish operational oversight between you, the client, and your industrial subcontractor: organizing regular meetings, implementing performance metrics, and promptly addressing any discrepancies…

Regardless of the strategy you choose, outsourcing your metal parts production is a decision driven by performance, not delegation!

By partnering with Hexalean, you aim to improve your financial performance, streamline your operations, and ensure on-time delivery.

This goal is achieved through our unique win-winapproach, as explained by Damien Vuillod, President of the Hexalean Group:

“Your job is to design, sell, assemble, and serve your own customers. Ours is to transform metal with precision, consistency, and dedication. When everyone focuses on their core business, the value chain becomes clearer, faster, and more robust.”

• Time savings
  Our streamlined workflow allows us to deliver faster and more consistently.
  => You simplify your planning and improve your commercial responsiveness.
• Cash flow optimization
  We give you the opportunity to reduce your outstanding balances, inventory, and capital expenditures through controlled outsourcing.
  => You transform your cumbersome structure into a more agile model. You can reallocate capital where it creates the most value.
• Simplified management
  We manage the entire supply chain, from raw materials to finished subassemblies.
  => You benefit from a single partner with fewer interfaces, less coordination, and greater transparency in your operations.
• Reliability
  We commit to the result, not the process. Your production becomes a secure flow rather than a source of variability.
  => You receive compliant parts, ready for assembly, available at the right time, with consistent quality.

The Hexalean Group is organized to:

• Absorb, structure, and advance your production over time.
• Maintain a stable and predictable pace that secures your value chain.

The question to ask yourself: “Is your organization better off doing everything in-house, or partnering with a provider that can do it better, faster, and more reliably?”

Choosing the Hexalean Group to outsource your industrial production is a strategic decision that will:

• Strengthen your own industrial performance by entrusting metal processing to a specialist in the field.
• Improve your competitiveness, gain financial agility, reduce operational strain, and finally give yourself the capacity to grow your industrial business.

Regardless of the strategy adopted, outsourcing industrial production is an essential strategic lever. Provided it is properly supported, it becomes a true driver of performance. For over 10 years, the Hexalean Group has been helping manufacturers like you turn this into a sustainable competitive advantage. Contact our team today!