2 March 2021

The benefits of industrial subcontracting

Top business leaders are always on the lookout for new ways to innovate and improve their operations and performance. While many manufacturing needs can be managed in-house, there are considerable benefits to subcontracting certain processes. They often go beyond reducing direct costs.


Production capacity

Fast-growing companies often face equipment shortages, skilled labour shortages and limited space. These obstacles prevent them from taking advantage of good business opportunities. Clients won’t wait for a supplier to increase its capacity; instead, they’ll turn to other suppliers more suited to their needs.

For companies manufacturing seasonal products or experiencing unexpected surges in demand, subcontracting can be an effective solution: it has no impact on overhead. What’s more, it doesn’t tie up resources that might be better allocated elsewhere.

QTG can increase its clients’ product manufacturing capacity, so they can take advantage of market opportunities as they come up, which dramatically reduces the risk of losses when market activity slows down.


A skilled workforce

Hiring, training and retaining skilled employees is no easy feat. Recruiting a new employee can take months and cost thousands of dollars.

With over 90 years’ experience in the steel industry, QTG has assembled a solid team capable of completing ambitious projects with tight deadlines. Drawing on these decades of experience, QTG shares its manufacturing expertise with its partners, which allows our clients to grow and innovate in terms of product design and process development.


Specialized equipment

QTG has invested in state-of-the-art equipment dedicated to tube fabrication, which means our partners can take advantage of cutting-edge manufacturing processes without having to invest heavily in their own businesses.

Tube components are an important part of finished products. It may be more cost-effective for you to entrust QTG with manufacturing your parts. At the same time, you’ll be able to dedicate your floor space to other, more profitable activities.

Laser cutting, bending, painting, welding and assembling tube products requires large, expensive equipment. This equipment only becomes profitable when production volumes are high. When produced in small quantities or on inefficient equipment, costs per part soar and can paralyze the production line. Subcontracting these products can boost efficiency in other in-house manufacturing activities by reducing both costs and lead times.


Cash flow and inventory management

Reducing inventory levels for raw materials, finished goods, semi-finished goods and ready-to-deliver products can have huge benefits for a company’s cash flow. Inventory reduction frees up cash that can be reinvested in growth to improve financial ratios and boost profitability.

By subcontracting manufacturing, these resources can be purchased and processed by the manufacturer. QTG therefore offers programs to reduce its clients’ inventory management. Savings can then be invested in marketing, R&D, operating costs or other growth-enhancing projects.

Every company needs to determine which services and activities will deliver the most value to its clients. At QTG, our focus on tube processing allows us to serve a wide range of clients in a variety of industrial sectors. As a result, our partners can concentrate on what they do best.

Over the years, QTG has developed specialized partnerships in distribution, product development, marketing, franchising, mass production and custom manufacturing of complex products. QTG has developed solutions as unique as its clients.

Our core mission is to help our communities grow and prosper. It’s who we are, and it’s at the heart of everything we do. We believe that by providing our manufacturing clients with a reliable and profitable partnership, we can support their continued success and help maintain a healthy North American business sector.

Thanks to our industrial expertise and state-of-the-art equipment, you won’t have to look far to find manufacturing solutions for all your tubing components.