Should you buy in or manufacture materials?

Checklist for the pros and cons of in-house manufacturing.

At Aequitas we can provide businesses in the Pinner area with assistance and advice on a wide range of business issues. The following checklist might help when deciding whether to buy in materials or manufacture them yourself...

Sometimes, manufacturers have difficulty in deciding whether to manufacture materials for a finished product in-house or to buy them in from outside.

Although the principal consideration is financial, there are also other factors that need to be weighed.

The following checklist will help you focus on the most important factors:

	YES	NO
Does demand for the finished product seem relatively buoyant for the foreseeable future?
Does demand for the finished product tend to fluctuate?
Do you have unused plant and labour that could be utilised to manufacture the materials?
Could you achieve greater economies of scale by manufacturing in-house than you could by buying in?
Would manufacturing in-house give you greater control over such things as the quality of the materials and delivery time?
Could you manufacture in-house without having to recruit extra labour?

Every 'Yes' answer is a case for manufacturing in-house.

If you are in the Pinner area and are looking for support and help from experienced accountants and business advisers, contact Aequitas.

Latest News

26 Nov 2021

House sales drop dramatically after stamp duty holiday ends

House sales in the UK plummeted by more than half in October after the stamp duty holiday ended.

25 Nov 2021

Data requests 'costing businesses thousands each year', research suggests

An analysis carried out by the Data Privacy Group has revealed that UK businesses are spending between £72,000 and £336,000 per year handling data subject access requests (DSARs).

24 Nov 2021

PM announces electric vehicle revolution

New homes and buildings such as supermarkets and workplaces, as well as those undergoing major renovation, will be required to install electric vehicle charge points from next year, under new legislation announced by Prime Minister Boris Johnson.

23 Nov 2021

Taxpayers warned over refund companies

Self assessment taxpayers should keep their Government Gateway login details safe from tax refund companies, the Low Incomes Tax Reform Group (LITRG) has warned.

22 Nov 2021

Customs Declarations from EU changing on 1 January

HMRC has warned business that Customs Declarations on imports from the EU will change once again at the start of next year.

19 Nov 2021

Jobs recovery continues despite end of furlough

There were 160,000 more workers on payrolls in October than in September despite the end of the furlough scheme, according to the latest figures from the Office for National Statistics (ONS).

18 Nov 2021

Three-day wait for Statutory Sick Pay to return next year

The standard three-day waiting time for Statutory Sick Pay (SSP) will be reinstated for coronavirus (COVID-19)-related claims from 25 March 2022, unless the government intervenes.

17 Nov 2021

HMRC issues warning on self assessment scams

HMRC has warned taxpayers completing their 2020/21 tax returns to 'be on their guard' and stay vigilant in regard to tax-related scams.

Get in touch

If you feel our services and expertise could support your business or for individuals, please call us today to book a FREE consultation.

Aequitas Accountants Ltd, Elthorne Gate, 64 High Street, Pinner, Middlesex HA5 5QA

Call now Contact us

Accessibility links