In-house manufacturing
You buy the machines, hire the staff and run the factory yourself.
- Full control of the process
- Lowest unit cost at very high volumes
- Large upfront investment
- You carry machine downtime and staffing
Contract manufacturing Australia
Contract Manufacturing in Australia: Comparing Your Options
In-house production, a local job shop, a sourcing agent, an online marketplace or a factory-direct contract manufacturer? Compare cost, control, quality and lead time, and find the option that fits your parts.
The short answer
Contract manufacturing means another company makes parts to your design, so you avoid buying machines and running a factory. Which option suits you depends on volume and urgency:
- Local job shop for urgent one-offs and repairs.
- Online marketplace for quick prototypes of standard parts.
- Factory-direct contract manufacturer for repeat production, especially parts that need moulds or dies.
- In-house manufacturing only at very high volumes, or for a process you must control yourself.
Side by side
Five ways to manufacture custom parts, compared
The options Australian businesses weigh up when they need parts made to their drawing.
Swipe the table sideways to see every option →
| Comparison | In-house manufacturing | Local job shop | Sourcing agent | Online marketplace | RTech factory-direct |
|---|---|---|---|---|---|
| Upfront investment | Very high: machines, staff and space | None | None | None | None |
| Who makes your part | Your own team | The local shop | A factory the agent selects | Whichever supplier takes the job | Our own factory |
| Markup on factory price | None | None | Agent commission added | Platform margin added | None, factory-direct |
| Cost per part at volume | Low once running at scale | Highest | Medium, plus commission | Medium, plus platform margin | Low, factory-direct |
| Moulds and dies | Build or buy yourself | Often outsourced | Arranged by the agent | Varies by supplier | Built in our own toolroom |
| Tooling ownership | Yours | Usually yours | Often unclear | Varies by supplier | Yours, stored for reruns |
| Freight, customs and duty | Not needed | Not needed | Varies by agent | Often quoted separately | Included, one price |
| Quality evidence | Your own QA | Varies by shop | Depends on the factory | Varies by supplier | Inspection report with every order |
| Typical lead time | Fastest once set up | Fastest for small, urgent jobs | Varies | Varies | 4–8 weeks to your door |
| Point of contact | Your own team | The shop owner | The agent | Online support | One dedicated advisor |
| Best when | Very high volumes or a core process you must control | Urgent one-offs and local repairs | Buying across many product categories | Quick prototypes and standard parts | Repeat production, especially parts needing moulds or dies |
General comparison. Individual shops, agents and platforms vary.
Landed cost
What is included in the price you are shown?
The cheapest-looking price is not always the cheapest landed cost. Here is what each option typically includes, and what can arrive as a separate bill.
Local job shop
Production
One local priceSourcing agent
ProductionCommissionFreightCustoms and duty
Depends on the agentOnline marketplace
ProductionPlatform marginFreightCustoms and duty
Extra bills on arrivalRTech factory-direct
ProductionFreightCustoms and duty
One price, all includedSolid tile: included in the price you are shownDashed tile: billed separatelyDotted tile: variesRed tile: middleman markup
Shows which costs are typically included, not how large each one is.
Quick check
Which option fits your project?
Answer three questions for a starting recommendation.
Pros and cons
When each option is the right choice
Every option has a place. These are the honest trade-offs.
Local job shop
A nearby Australian workshop machines or fabricates your parts.
- Fast turnaround on small jobs
- Easy to visit in person
- Highest cost per part
- Limited capacity for moulds, dies and volume
Sourcing agent
An agent finds an overseas factory and manages the order for a commission.
- One contact across many suppliers
- Useful for unfamiliar categories
- Commission on top of the factory price
- Factory and quality can change between orders
Online marketplace
Upload a file and the platform routes your job to a supplier in its network.
- Instant online prices for standard parts
- Convenient for quick prototypes
- Platform margin on every order
- Freight and duty often billed separately
RTech factory-direct
We build the tooling, make the parts in our own factory and deliver them duty paid.
- No middleman markup
- One price to your door, inspection report every order
- Not suited to same-week urgent jobs
- Sea freight adds transit time to production orders
How it works
Contract manufacturing with RTech
One price agreed up front, and one manufacturing advisor the whole way.
Upload drawing
CAD files or a PDF drawing, with quantity, material and finish.
Receive your quote
One price delivered duty paid, a lead time and design notes within 48 hours.
Manufacturing
Tooling and parts made in our own factory, with no middlemen in between.
Inspection
Every batch measured against your drawing and documented in a report.
DDP delivery
Shipped, cleared through customs and delivered to your door.
Before you choose
Six questions to ask any contract manufacturer
Use this checklist when you compare quotes, whoever you end up working with.
Who actually makes the part?Their own factory, or a supplier they select for each order.
What is the total landed cost?Whether freight, customs clearance and import duty are included or billed later.
What quality evidence will you get?Inspection reports and material certificates with every order.
Who owns the moulds and dies?Tooling you pay for should belong to you, with clear terms for storage and release.
How is your IP protected?How your drawings are used, who sees them, and whether an NDA is available.
Who is your point of contact?One advisor who knows your project from quote to delivery.
FAQ
Contract manufacturing questions
What is contract manufacturing?
Contract manufacturing is when another company makes parts or products to your design. You own the design and the customer relationship, and the contract manufacturer provides the equipment, tooling, skilled labour and production capacity.
Is contract manufacturing worth it for a small business?
Often, yes, because you avoid buying machines and running a factory. There is no fixed minimum for CNC machining, so prototypes and small batches are welcome. For moulding and casting, the tooling cost makes larger runs more economical, so your quote shows the unit price at different quantities.
What is the difference between a contract manufacturer and a sourcing agent?
A sourcing agent finds a factory for you and adds a commission, and the factory can change from one order to the next. A factory-direct contract manufacturer makes the parts in its own facility, so the company that quotes your part is the company that makes it.
Who owns the moulds and dies?
With RTech, you do. When you pay for tooling, it belongs to you. We store and maintain it for your repeat runs, and release it to you on request.
How are my designs protected?
Every drawing you send is covered by our privacy agreement from the first message, used only to quote and make your parts, and never used for other customers. If your company requires an NDA, we sign yours or provide ours alongside your quote.
Do I pay customs duty on top of the price?
No. Prices are delivered duty paid: freight, customs clearance and import duty are included in one price, so there is no separate bill when the parts arrive.
How long does offshore contract manufacturing take?
Most orders arrive 4–8 weeks after you approve the quote, depending on the process. New moulds and dies add tool build and sample approval before production. Your quote gives a confirmed delivery date.
Keep reading
Related guides
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Send your files and we will come back with one price delivered duty paid, a lead time and any design notes.