Household Cleaners Contract Manufacturing Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)Report

Household Cleaners Contract Manufacturing Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

  • Published Date: Jan, 2024
  • Base Year for Estimate: 2023
  • Report ID: GVR-P-10503
  • Format: Electronic (PDF)
  • Historical Data: 2021 - 2022
  • Number of Pages: 60

The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.

In this Household Cleaners Contract Manufacturing procurement intelligence report, we have estimated the key cost components which include raw materials, labor, equipment & machinery, rent & utilities, packaging & transportation, and other costs. Other costs can be further bifurcated into research & development (R&D), administrative expenses, taxes & insurance, maintenance & repairs, depreciation, and interests.

The price charged by the contract manufacturers in the category might differ based on a number of variables, including the complexity of the project, the amount of output and inputs, location, raw material pricing, and more. Business enterprises (brand owners) need to assess about what they exactly expect when entering into a business relationship with a contract manufacturer.

The cost-plus pricing model is typically used by manufacturers in this category. This model is used to maximize the profit for the manufacturer. It entails adding up all costs associated with the product and adding on a percentage for profit. This model reduces the risk of underpricing or overpricing products. However, this model does not consider the value perceived by the consumer based on benefits, features, and product differentiation. In certain instances, manufacturers may prefer to use other pricing models, such as competition-based pricing or demand-based pricing.

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).

To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.

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.

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Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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