Household Cleaners Contract Manufacturing Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The key factor in the total cost of employing a contract manufacturer is location. Manufacturers in locations with greater cost of living, such as Western Europe and North America, typically charge more prices than those in Asia and Africa. The cost may vary depending on the region or nation due to differences in labor prices, tax laws, regulatory frameworks, and logistical issues challenges.

The average hourly rate for the companies offering contract manufacturing services by nations are USD 99.9 to 148.9 (in U.S.), USD 24.9 to 48.9 (in India), USD 49.9 to USD 98.9 (in U.K.), USD 25.9 to USD 49.9 (in Canada), USD 49.9 to USD 98.9 (in Australia), and USD 24.9 to USD 48.9 (in Mexico, Poland, and Spain).

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Production Managers working in the western-coast (such as San Fransisco, Seattle, etc.) of the U.S. receives 10% - 15% higher base salary compared to the salary received by Production Managers working in the eastern coast (such as New York, Philadelphia, etc.) of the U.S. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Household Cleaners Contract Manufacturing category over the last two years:

In October 2022, Guy & O'Neill, Inc. announced the acquisition of U.S. wipes operations of Albaad, USA, Inc. This acquisition has helped Guy & O'Neill in improving quality, customer service, production capacity, innovation, and efficiency for both present and potential clients. The ongoing commitment of Guy & O'Neill to offer a wide range of products, product formats, categories, and consumer solutions was furthered by this acquisition.

In August 2022, Colep Consumer Product’s packaging entity Colep Packaging announced the acquisition of 40% stake in ALM, S.L. This acquisition helped Colep in developing and flourishing by diversifying its package offerings and offering a greater selection of packaging solutions made of sustainable materials. It is able to provide the market with additional options, adaptability, and personalization through technologically advanced solutions.

In February 2022, Essity AB announced the acquisition of Legacy Converting, Inc. the acquisition has helped Essity in strengthening it ‘Tork’ product brand (typically comprising wiping and cleaning products), thus, benefiting the company’s North American customer base. With an enhanced professional hygiene offering and deeper surface cleaning and disinfecting knowledge, Essity has turned into a single point of contact for customers' sustainable hygiene needs.