Why Electrical OEMs Are Increasingly Outsourcing Fabrication

With the global electrical equipment market projected to grow at 5-6% CAGR through 2030, the electrical equipment industry is evolving rapidly, driven by supply chain pressures, labor shortages, and growing demand for efficiency. More than ever, electrical OEMs are turning to trusted fabrication partners to keep projects on track. At LMI Manufacturing, we’ve seen firsthand how outsourcing can help OEMs stay competitive while ensuring consistent quality, faster turnaround times, and scalable fabrication solutions across laser cutting, welding, machining, and assembly.

Rising Demand for Efficiency

Electrical OEMs today face stricter deadlines and increasingly complex assemblies. Partnering with a fabrication services provider helps them:

• Shorten lead times by tapping into partners with advanced equipment and streamlined processes.
• Avoid bottlenecks caused by in-house production limits.
• Focus on core competencies like design and innovation rather than shop-floor execution.

Overcoming Skilled Labor Shortages Through Outsourcing

Skilled labor shortages are affecting manufacturers nationwide. A recent study published by Deloitte and the Manufacturing Institute projects that there will be a shortage of 1.9 million skilled workers in the manufacturing industry by 2033.By outsourcing, OEMs gain access to experienced teams – from welders to machinists – without the hiring, training, and retention challenges that come with managing a large workforce. 

Reducing Costs Without Sacrificing Quality

Building and maintaining in-house fabrication capabilities can be costly. Outsourcing provides:

• Lower overhead by eliminating equipment investment and maintenance. Modern fabrication equipmnent like fiber lasers can cost $500,000+, making outsourcing a cost-effective way for OEMs to access cutting-edge tools without capital investments.
• Access to advanced technology like fiber lasers and robotic welding without upfront capital expense.
• Scalability to ramp up or down depending on project needs.

How LMI Supports Electrical OEMs

At LMI, we specialize in supporting electrical industry needs – from enclosures and copper coils to complex welded assemblies. Because all major processes (laser cutting, forming, welding, machining, and assembly) happen under one roof, OEMs get the benefit of:

• Consistent quality across all stages
• Transparent pricing and quoting systems
• Prototyping support for product improvement
• Fast, reliable turnaround times

The Future of Outsourced Fabrication for Electrical OEMs

Outsourcing fabrication isn’t just a trend – it’s becoming the standard for OEMs that want to stay competitive in today’s market. With trusted partners like LMI, electrical OEMs gain the confidence to scale, innovate, and deliver with consistency.