Contract Manufacturing & Custom Synthesis
A large, yet relatively low profile sector of the chemical industry are the toll producers, private label and contract manufacturers, and custom synthesis businesses. Whether private labeling for consumer brands or providing outsourced chemical intermediates to the pharmaceutical industry, contract manufacturers play a vital role in the chemical value chain.
These contract businesses run the gamut from highly efficient toll blenders and private labelers who serve as a customer’s outsourced logistics arm, to the custom synthesis facilities who may specialize in certain complex chemistries, reaction capabilities, or hazardous material handling expertise. Key value drivers in contract manufacturing are the quality, longevity and scope of the customer relationships, breadth of services provided (one-off toll manufacturing, versus integrated supply chain management, for example), manufacturing efficiencies, and accurate understanding of cost drivers.