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Wage and Hiring Figures for Small Businesses Remained Flat in May

Posted: 05 Jun 2019 11:42 AM PDT

  • As the job index remains the same from last month, wage growth continues to stay ahead of the 2018 rate.
  • Southern states still lead employment growth, but states in the West lead hourly earnings growth.
  • Despite being the lowest-performing industry in terms of job growth, manufacturing is the only one to see weekly earnings grow more than 4%.

In May, wage and job growth for U.S. small businesses remained largely unchanged from April, though hourly earnings have increased by nearly 70 cents year to year, according to the latest Paychex | IHS Markit Small Business Employment Watch.

Released each month by Paychex and IHS Markit, the Small Business Employment Watch examines employment and wage trends throughout the country. The report, drawn from payroll data collected from Paychex's roughly 350,000 clients, gives insights into economic trends at the national, regional and local levels.

According to the monthly report, the national job index was at 98.76 throughout the month of May. That figure continues a relatively stable trend throughout 2019.

Martin Mucci, Paychex president and CEO, said the flat job growth figure could be some cause of concern for small business owners, though there are steps they can take.

"Flat job growth this year suggests that small businesses are struggling to compete with larger companies for talent," Mucci said. "According to our most recent research report, one way that employers can stand out to prospective hires is by focusing on employees' desire for flexibility in when, where, and how they work."

National and state economic growth

As the American economy remains a story of continued growth under the Trump administration, the Small Business Employment Watch shows that the national job index has plateaued for most of 2019. The May figure of 98.76 is down 0.85 points from May 2018 but is consistent with the last two months.

Hourly wages throughout the country are up 2.53% from last year, remaining only slightly ahead of the 2018 average of 2.49%. Similarly, weekly earnings growth for small business employees continues to hover just over 2%. As the minimum wage increased, employers responded with decreases in the number of weekly hours worked, officials said.

At the state level, Tennessee, Texas, Georgia and Arizona all have job indexes above the 100 mark, with Tennessee earning the top spot. These states also continue their 12-month positive job growth rates. Meanwhile, New York and New Jersey again find themselves at the bottom of the list for small business job growth.

Illinois posted the highest hourly earnings growth in May, sporting a 3.51% increase. Officials said that jump is the state's fastest spike in growth since the report started back in 2011. With the average hourly rate in Illinois sitting at $29.62, only Washington, Massachusetts and Virginia can boast higher rates.

Regional and metropolitan economies

When considering regions, the May report shows that the South is the only area to report a job index above 99. Officials said the Southern states continue to dominate in this metric, having topped the small business employment growth chart for 36 of the past 37 months.

May also marked the first time this year that the Northeastern U.S. has had its small business employment growth metric rise above 98. The region was also able to report its first consecutive increase for the first time in more than a year, according to officials.

As for wages, the Western U.S. leads in hourly earnings growth with an average rate of $28.65 per hour and year-over-year growth at 3.11%. However, the West is also the only region to see a month-to-month slowdown in its hourly earnings numbers.

For metropolitan areas, May was very kind to the Dallas metro area, which saw a job index of 103.65. With that figure, representing a 3.4% increase over last year, Dallas leads other metropolitan areas "by a wide margin," officials said. Other areas reporting strong growth were Tampa Bay, Atlanta, Denver, Phoenix and Seattle, which all exceeded 100.

On the other side of the scale, in California, Riverside and San Diego joined New York City as some of the lowest-ranking metro areas in terms of their job indexes.

For wages at the metropolitan level, Chicago, San Diego, Los Angeles and Riverside reported the strongest hourly earnings growth, while Houston and Dallas reported growth below 2% year to year.

Industry statistics

The monthly report also examined growth within various American industries. The job index showed that manufacturing jobs became the lowest-performing sector in May at 96.92, marking a 2.19% drop from last year.

Education and health services, however, saw their fifth consecutive gain, rising 0.05% in May and surpassing construction as the second highest-ranking industry.

Leisure and hospitality jobs saw a surge in hourly earnings, with a 4.59% increase last month, though officials said those increases are "being minimalized by a significant decrease in weekly hours worked," which were down 1.7%. Only manufacturing posted a weekly earnings growth above 4%.

When a Law Firm Isn't the Right Fit for Your Legal Practice: Starting Your Own Solo Practice

Posted: 05 Jun 2019 10:00 AM PDT

Life has a way of changing our priorities, and you may have begun asking yourself if your "classic" career-path is too old-school for your current interests and priorities. If you're feeling this way, know that you're not alone. In fact, a survey conducted in 2008 by the American Bar Association revealed that almost half of the lawyers surveyed were not satisfied with their careers.

Why do so many lawyers stay in their practices if they feel so uncomfortable? I asked this question to many attorneys, and the answer is almost always that they're settling because they at least feel safe. But just how important is it that you feel "safe," if that safety leaves you feeling disappointed on a regular basis?

Sometimes the reality doesn't match the dream

Many attorneys find themselves spending way too much time at the office, altogether losing any semblance of a work-life balance. An article published by The Atlantic states that attorneys are often working 60 to 70 hours per week. That sizeable of a workload can lead to burnout, fast.

An emerging problem is that most legal firms enforce hourly billing requirements. These imbalanced economic incentives make it increasingly difficult for attorneys to maintain genuine relationships with their clients, while still maintaining their lives outside of work. I've spoken with many lawyers who left their law firm because they despised this particular aspect thought of their role. This traditional model also means that your success is related to your time instead of your real value and capabilities, which severely diminishes customer-oriented practices.

Another problem that I frequently hear about is that when you work in a law firm, your time, the nature of your cases, and the type of clients you take on are usually chosen for you. Another complication is the high overhead costs that you pay for out-of-pocket. This can lead to misalignment of customer acquisition.

Given the hardiness required to become a successful lawyer, you deserve the power to make personalized decisions. Why should someone else be in charge? You should not have to struggle to be at the forefront of your career, or to make the decisions that best suit your interests, education and lifestyle.

Starting your own legal practice

Daring to start your own solo practice is not exempt from its own complexities, but it certainly can be done. Lawyers looking to leave their traditional law firms do have resources available to help them kick-start their own practices.

Auxana is one useful resource, which can be considered a "law-firm-in-a-box" for corporate lawyers who want to run their own business, but fear leaving the "safety net" of their traditional firm. The platform connects members' attorneys with potential clients who need monthly legal services and strategic advice, typically during the company's growth life cycle. In addition to connecting you to potential leads, there are also, proven tools, marketing strategy and implementation, peer-to-peer collaboration, support, training and management resources provided, as well as a predictable revenue model through a flat monthly billing fee.

You'll still have to address some additional business aspects. For example, entity formation and malpractice insurance will need to be obtained. It is also important to establish relationships with strategic business partners for referrals. If you don't have clients, obviously you won't have a practice. If you are able to take your clients with you when you leave your law firm, make sure that you've spoken with everyone to ensure they understand your move and are comfortable with it. If you need to start over with your clientele, you should start marketing immediately. It's also important to make sure you have a budget for your new individual overhead. Don't simply guess at this, but really sit down and figure out all of your new overhead costs.

You can redefine what a "successful" legal career looks like, and that might start with evaluating if the "safety net" of a law firm actually provides you with the life you want. If you're feeling burnt-out and wish that you could have a more balanced life that includes a more client-centric role, it may be time to take the leap into starting your own solo practice.

6 Things You Need to Know About Workers' Compensation Insurance

Posted: 05 Jun 2019 06:15 AM PDT

Workers' compensation, or workers' comp, is an insurance program that provides benefits to workers who were injured or became ill on the job to make up for medical costs and lost wages while they were out of work.

Workers' comp insurance generally covers injury or loss of limb, illness caused by the job environment (like emphysema), repetitive motion injuries, permanent impairment, medical treatment, rehabilitation, lost wages, death, and liability insurance. Workers' comp will provide coverage regardless of who is at fault – the employee, the employer, co-workers or even customers.

While it might seem like just another business expense, workers' compensation insurance can actually protect you from litigation should an employee become injured or sick as a result of the job.

"Workers' compensation insurance exists primarily to protect the employer," said Chane Steiner, CEO of Crediful. "It is much better to pay for insurance to protect your business in case you are hit with a major claim and don't have the funds to pay it directly."

 

Editor's note: Looking for workers' compensation insurance for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.

 

 

Except for Texas, every state legally requires companies to carry workers' compensation insurance either through a private insurer or the state, or the business can elect to be self-insured. Each state has different rules regarding what is covered, how issues are evaluated, how medical care is delivered and the amount of benefits an employee can receive, so be sure to check your state's regulations. Failure to carry the required insurance will result in your business paying for the benefits out of pocket as well as penalties levied by the state.

The cost for workers' compensation insurance varies by provider and industry (high-risk jobs like roofing and construction carry higher premiums than office jobs, for instance). A company's premiums can also either increase or decrease depending on the number of claims filed.

No matter what industry you are in, it is important to carry workers' comp coverage. "A worker can have an accident or get injured under almost any circumstances," said Miguel A. Suro, attorney and founder of The Rich Miser. "Even an office worker can have an accident."

Business owners can reduce claims and lower their premiums by …

  • Assessing the safety of the work environment by investigating how safe the equipment is, determining whether it needs to be repaired or replaced, offering safety gear where needed and providing ergonomic office equipment.
  • Creating a safe work environment by training all employees on workplace safety, offering updates and tips on best practices, and incentivizing employees' accident-free work.
  • Getting injured employees back to work faster.
  • Starting an employee wellness program to encourage healthy living and fitness, which can reduce the number of employees injured on the job.

These are six myths and facts every employer should know about workers compensation insurance.

Workers' comp myths

1. Once the workers' comp has been paid, the employer has no more responsibilities.

By staying in close contact with their employees early and often during the recovery phase, business owners can better gauge when the employee will be able to return to work, as well as diminish the possibility of fraud. A return-to-work program can reduce the number of days lost to injury or illness, increasing productivity as a result. By instituting such a program, you may also reduce future increases in workers' comp and disability insurance: When you reduce lost wages, the number of claims drops, which means your premiums drop too.

2. Only larger businesses are required to carry workers' compensation insurance.

Again, laws vary by state, but in many states, a business only needs to have one employee to meet the threshold for workers' compensation. Coverage requirements may also depend on the type of business. For example, in Missouri, the law states that most companies must have five employees before coverage is required, but for a company in the construction industry, the minimum is one employee.

Most experts recommend having workers' compensation insurance no matter what your state's minimum is. In the event of an incident, it could save you thousands of dollars.

"Even if your state doesn't [require it], it's a bad idea to go without it," said Suro. "It leaves both the business and its workers unprotected."

3. Workers' compensation fraud is common.

Most workers' compensation claims are true – studies show that only 1% to 2% of claims are fraudulent. Regardless, it is important to stay vigilant. The insurance industry estimates that fraudulent claims steal around $80 billion per year across all insurance types, according to the Coalition Against Insurance Fraud. Fraud also impacts your business from top to bottom, raising premiums and costing you money. [Related: Learn more about how to prevent workers' comp fraud.]

4. Having employees fill out 1099 forms is a way to avoid paying workers' compensation.

Some small businesses might be under the impression that if their employees fill out 1099 forms, they are classified as independent contractors and therefore do not require coverage. A worker must meet certain criteria to be classified as an independent contractor, and if state or IRS investigators discover that workers classified as independent contractors are in fact employees, your business could face tax penalties and, in some states, be held criminally liable.

Workers' comp facts

5. Workers can be paid for an injury that occurred at work even if it was partially their fault.

While employees don't have free rein to injure themselves on purpose in order to collect benefits, if the injury rises out of or is within the scope of their employment – even if they might have been careless – then they're covered. If an employee sustains an injury while under the influence of drugs or alcohol, benefits most likely will not be covered.

6. An employee can collect benefits even if they weren't at the workplace when they were injured.

According to FindLaw.com, while the laws vary by state, an employee is generally covered anytime they are injured within the scope of performing their duties – even if they are not at their workplace. This includes remote workers, as long as they are officially employed, said Steiner.

Other examples would be employees who are injured at the hotel they're staying at for business purposes or while out running an errand on behalf of the company. Employees are also typically covered if they're injured while attending a company-sponsored event (a company picnic, retreat, etc.). However, workers' comp does not cover employees who are injured while on break, even if they are on company property.

3 Mistakes that Cost You Credibility at Work

Posted: 05 Jun 2019 06:00 AM PDT

Many people believe they do a great job managing their reputations and selling themselves in the workplace. They get a mentor to help guide their upward momentum. They hire coaches to fine-tune their skills. However, they don't realize that the day-to-day mistakes they make can cost them in the end. Our peers, bosses, customers and employees not only create a perception of us during high-stakes moments but also while observing our everyday interactions. 

In mere moments, the simplest mistakes can cost us what has taken months of coaching and mentors to create. Avoiding these three professional mishaps can keep your career from faltering:

1. Tardiness

No matter how hard we try, there are days when the clock is not our friend. Lateness happens to the best of us. Whether it's traffic, a long-running meeting or an alarm that didn't go off, we are all bound to be late at some point, for some reason. The occasional time-not-on-your-side mishaps won't create a reputation crisis. It's those chronic late arrivals that cost trust in the workplace. People will grow to expect it from you. Even so, they will never get over the disrespect they feel each time you interrupt another meeting that started on time. Not only will they grow irritated and resentful, but they'll also begin to believe you aren't dependable.

How to fix-it: Be honest with yourself. To arrive early is to arrive on time. To arrive on time is to arrive late. Get ahead of your bad habits. If you're late to work each day, plan to leave the house earlier. Prepare the night before by getting everything pulled together and ready to go. Don't leave any chores, errands or efforts until the morning. Accomplish what you can the night before. Assign small chunks of time to finish each daily effort: 15 minutes to shower, 15 minutes to dress, 15 minutes to eat breakfast. Watch the clock diligently to ensure you stay on track.

If you run late, be quiet about it. Gather what is needed and walk in gracefully. Look collected and take your seat. Don't announce your arrival or come up with excuses as to why you're late yet again.

2. Technology

Since the introduction of the cell phone, manners seem to have gone out the window. With the arrival of smartphones, people have lost respect. The modern-day convenience of being available any time of day, from any place in the world, is nice but not necessary. If you're in a meeting, it's not the time to text or answer emails; it's time to listen and engage. Walking down the hallway isn't the time to tune into technology. Instead, engage with others sharing your space and remain mindful of anyone around you.

When you tune others out and tune into technology, you send a message that those around you aren't as important as your phone. When you text during a meeting, you subconsciously tell the speaker and other attendees that what they have to say isn't important and that your text is more important than their time.

As you walk down the hall with your head buried in your phone, you tell others that their presence isn't important. It's this type of rude behavior that creates animosity and frustration.

How to fix-it: Avoid using technology, unless you are at your desk and not otherwise engaged in a meeting or conversation. Even better, avoid temptation altogether by leaving it behind when you attend a meeting or head to another office. When it's out of sight, it's out of mind. Focus your time and attention on those who most deserve it. This will help you build stronger workplace relationships and create a reputation for engagement and interest.

3. Excuses

To make a mistake is human nature; to make excuses is childlike. Far too often, adults try to excuse their mistakes and poor choices at the expense of someone else. Because their boss sends text messages throughout meetings, they believe it's OK to do the same. Because peers come and go with little regard for the clock, they think it's permitted. Mimicking or excusing your bad behavior by blaming others is what children do. You're an adult who knows better. You create your reputation through your own actions and choices. Regardless of your company culture, or easygoing leadership, excusing them for your bad habits is disrespectful to everyone.

How to fix-it: Expect more from yourself. Just because everyone does it doesn't permit you to do it, too. Raise the bar and others will follow your lead. Arrive on time when others don't. Engage when others are quiet. Honor those you work with by taking ownership of your bad habits and committing to do better. When others see the effort you make, their trust in you will grow. You will set the example that others will soon follow. Your ability to influence others to act will rise.

Committing to improving your high-stakes performance is important. Just don't underestimate the power of your daily behaviors, too. In these day-to-day moments, people come to believe the person they observe is the true you. If you want influence in the workplace, pinpoint the small habits that currently cost you, then own the mistakes. Commit to making mindful changes. Before long, respect and credibility will follow.

How to Write a Job Resignation Letter

Posted: 05 Jun 2019 06:00 AM PDT

  • Creating and submitting a professional resignation letter can have a lasting effect on how you are viewed by past and future colleagues and employers.
  • Your resignation letter should be short and concise. Include the date of your last working day, your offer to assist with the transition and your gratitude for the opportunity with your soon-to-be former employer.
  • In your resignation letter, do not air your grievances or speak poorly about the company or co-workers. 

Resigning from a job, regardless of the pretenses, is a major life decision and should be taken seriously. Crafting and submitting a professional resignation letter is a key aspect of the resignation process and can leave a lasting impression on former and future employers. 

Pat Roque, career transformation coach at Rock on Success, described a job resignation letter as being a formal notification of your exit strategy. 

"It is a required document that becomes part of your employee records," Roque told Business News Daily. "Think of it as the last chapter of your story at your former company." 

Your letter should have a neutral tone that informs your employer that you are leaving and on what date, plus it should offer to assist in the transition to someone new and thank them for the time you were part of the team. Despite your feelings about your job or your boss, being professional, courteous, and helpful provides closure and a positive path forward. 

"Always keep the door open, because you never know when you may want to return or even work with other colleagues in a future role elsewhere," said Roque.

James Rice, head of digital marketing at WikiJob, said that although you will likely be expected to hand in a standard resignation letter, it is usually best to schedule a meeting with your boss to personally give them the letter and discuss your resignation in person. 

What your resignation letter should say

Although the specific contents of your job resignation letter can be tailored to your job and company, there are a few basic elements that should always be included. Regardless of the circumstances, keep it simple and concise. 

Roque suggested including the following elements: 

  • Your end date. Provide your official end date, ideally at least two weeks in advance.
  • Help with the transition. Express your commitment to ensuring a smooth and easy transition, including availability to discuss your workload and status updates with your manager or successor.
  • Gratitude for the opportunity. Find something nice to say, regardless of any differences you may have with a bossy colleague or how toxic the job may have become.
  • Request for instructions (optional). If you aren't yet aware of the exit protocol at your company, request specific instructions about final work commitments and such. Some companies will ask you to leave immediately, while others will have you very involved in a transition over the two-week period, or they may ask you to work from home and see HR to return your laptop on your last official day. 

Alex Twersky, co-founder of Resume Deli, added that offering to assist in training a replacement, preparing the team for your departure and expressing gratitude are important elements of a job resignation letter. 

"Conjure up ... the best time at your job and have that image top of mind when you write your resignation letter," said Twersky. "Let your boss think they were great, even if they weren't. [You might] get a good recommendation out of it." 

What your resignation letter shouldn't say

Just as important as knowing what to say in a resignation letter, is knowing what not to say. Many resigning employees make the mistake of including too many personal details and emotional statements in their official letters. 

When you are writing an official resignation letter, omit the following details: 

  • Why you are leaving. Although you may feel the need to explain away your reason for leaving, this is not necessary to include in your resignation Rice said you may believe that the new employer has a better product, service, working environment, salary or benefits package, but these are not things to state in your resignation letter. Keep your language professional and positive.
  • What you hated about the job. A resignation letter is not the place to air your grievances or speak poorly of your soon-to-be former company or co-workers. Roque said to let go of anger before submitting the letter. She also suggested having someone else review your letter before submission to ensure it is appropriately polite and succinct.
  • Emotional statements. Twersky stressed the importance of keeping a calm, professional tone in your letter. An aggressive or otherwise emotional letter will only come back to hurt you. Twersky said that, even if you are overworked and resentful, don't quit angry. Avoid using phrases like "I feel" or "I think," unless they are followed up by positive statements. 

When writing your letter, try not to burn your bridges as you may need them in the future. 

"Your employers may be providing you with a reference, or if you are staying in the same field, you may still network in the same circles or want to return in the future," said Rice. "It is always good to keep in touch with your old colleagues and with social networks like LinkedIn, it may be hard to avoid them." 

These are also good tips to keep in mind when you have the conversation informing your supervisor or manager that you are leaving. Short and simple is fine; there is no reason to explain your reasons if you don't want to. Just stay polite, respectful and professional throughout the discussion. 

Sample resignation letter

Based on advice from our experts, here is an all-purpose resignation letter template you can fill in with your personal details. Remember, you are not required to include your reason for resigning in your letter. 

[Current date] 

Dear [supervisor's name], 

Please accept this letter as my formal resignation from my role as [title]. My last day with [company] will be [end date]. 

To ease the transition after my departure, I am happy to assist you with any training tasks during my final weeks on the job. I intend to leave thorough instructions and up-to-date records for my replacement. 

I would like to take this opportunity to thank you for the knowledge and experience I have gained by working here. I am very grateful for the time I have spent on our team and the professional relationships I've built. It's been a pleasure working for you, and I hope our paths will cross again in the future.

Sincerely,

[Your signature and printed name] 

If you opt to provide a reason for leaving, either in your letter or during the conversation with your employer, be clear and positive, focusing on what you are gaining from the change and not the circumstances that caused it. Always maintain your professionalism and keep things formal. 

"Remember that people leave their jobs every day, and your manager will be used to the process," said Rice. "If you are courteous and thoughtful when resigning from your job, you will make the process easier for everyone and set yourself on the right path for future success." 

Additional reporting by Nicole Fallon and Marci Martin. Some source interviews were conducted for a previous version of this article.

Why Develop a Product With a Contract Manufacturer

Posted: 05 Jun 2019 05:00 AM PDT

However, with due diligence and establishing a relationship with the right contract manufacturer (CM) will provide your company with a number of added strengths. Partnering up with a CM that provides development resources will free up more of your company's resources to focus on product sales and marketing.

Avoiding duplicating other people's work

In the past companies have sourced products from manufacturers that have pre-existing tools for that existing product. This lead identical products flooding the market, leaving those companies with low margins and high competition.

For example, companies you might find on Alibaba offer products you already have. However, strong trends are pushing some companies toward the development and manufacturing of a product that can be sold and distributed by one company, rather than multiple companies.

Deloitte has also stated that launching new products is the number one strategic objective for product based companies. Therefore, launching innovate products faster than before is the key for product based companies.

Common product development delays

In the traditional ways of developing a product there are multiple breaks in the chain that cause both time and financial delays. Here are the following areas that most often cause delays:

  • Poor engineering: This is the part that dictates the direction of your product. There is also a correlation with poor engineering and a high rejection rate, higher costs, decrease in customer satisfaction.
  • Budget and time management: There are financial costs with each step and sometimes certain steps are forgotten. Failing to manage time and money will lead to postponing product launch or having to kill the project.
  • Transfer of documents: It happens that people forgot to transfer appropriate files and files, or they get lost.
  • Pricing: Receiving a quote that would price them out of the market. This is usually due to poor engineering.
  • Additional engineering: Just because you have a sample doesn't mean it can be made. When this happens the CM will need to re-engineer the part, which adds delays.

Why CM's offer development services

The success of the CM is strongly correlated to the success of their clients. So, it's in the best interest for the CM to provide services that are geared toward improving the development and manufacturing efficiencies of their clients. The CM's offer services to make their customers happy while that frees up the time of the company to focus on sales and marketing which will improve the satisfaction of the final customers.

The contract manufacturer's edge

Speed is the most important part of bringing products to market. Developers see the importance of partnering up with a contract manufacturer to expedite the development steps and to have a smooth transition into production. The reason that developers are partnering with contract manufacturer's is because CM's are the most knowledgeable people with regards to production processes, materials, tolerances, specifications and the overall manufacturing process. Developers see the value of this and are starting to take advantage of the skill sets that these CM's can provide them with. CM's have also a proven track record of collaborating with companies to guide them and work with them through the development steps. Here are the development steps in which the contract manufacturer shows its greatest values in:

  • Product engineering: The company has seen an issue or problem in the market and they would like to develop a product to fill the void. A contract manufacturer is valued here because they can find solutions to the problems that the client is having. With engineering and manufacturing experience, the engineers from the CM can engineer a product that can be made efficiently and economically that also is a valid solution to the problem.
  • Functional sample: Sometimes referred to as PoC (Proof of Concept), a sample can help you check the functionality of the previous step, which is product engineering. CM's provide value in making the design into a prototype as quickly as possible. Most CM's also have machine's that are used strictly for samples. Going this route will save the company time and high prototype fee's.
  • Reengineering: Quite often, the first sample will not be the last sample. There are engineering and design changes that usually happen throughout the development stage that look at continuously improving the functionality until the goal is met.
  • Golden sample: The golden is the final sample and on what production will be based. The CM can use the golden sample to build quality requirements, build production documents, finalize costing and much more. Also, since the CM has been a part of the development process then there is no need to worry about the transfer of documents.
  • Packaging design: Choosing a seasoned CM can also provide you with samples of packaging that can work within your respected industry. A CM will also have relationships with packaging suppliers that can design the outer cartons that keep your product and package safe during transportation.
  • Quotation: During the development stages pricing play an important part. The CM will understand your budget of the project and can design and develop a product that can be purchased at the price that the company has originally agreed upon.
  • Manufacturing documents: Since the CM has been working on this project, there is no need to share extra documents and run the risk of failing to pass off important documents. The CM can compile all of this for you.
  • Tooling: Designing tools to be fabricated can change from what the final CAD drawings look like. For plastic injection molding, there are a number of key areas to take into account when design the tool, such as shrinkage, walls, material flow rate, cooling time, etc. Finding a CM that can design tools as well is a huge benefit to make sure that the final product is what you have planned it to look like.
  • Production: The final step is to launch production. With the CM helping to develop the product for you improves the speed and efficiency from development to production.

The bottom line

Partnering up with a CM to collaborate on product development can provide your company with the speed and cost efficiency needed to give your company a competitive advantage. With partnering up with a CM that has a reputation in your industry and with developing innovative products will free up the time of the company to focus on the sales, marketing and distribution side of their company. Like always, it's best to complete due diligence of multiple CM's before making a decision on which one to choose.
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