Skip to content
MarketScale
‹ Back to IndustriesIndustrial IoT

Should You Outsource Finishing or Build an In-House System?

If you’re a decision maker working in equipment or parts manufacturing, you’ve probably debated whether it’s better to finish your parts in-house or outsource the work to a custom coater. This decision requires a bit of calculus, taking into consideration the costs, workflow, time and capabilities. Even if you’ve run the math countless times, you…

This story was produced through MarketScale. See how Industrial IoT teams put it to work with AI Visibility (GEO).

By Industrial Iot · Promoted Content
Share
Should You Outsource Finishing or Build an In-House System?

Key takeaways

01

If you’re a decision maker working in equipment or parts manufacturing, you’ve probably debated whether it’s better to finish your parts in-house or outsource the work to a custom coater.

02

This decision requires a bit of calculus, taking into consideration the costs, workflow, time and capabilities.

03

Even if you’ve run the math countless times, you…

If you’re a decision maker working in equipment or parts manufacturing, you’ve probably debated whether it’s better to finish your parts in-house or outsource the work to a custom coater. This decision requires a bit of calculus, taking into consideration the costs, workflow, time and capabilities. Even if you’ve run the math countless times, you still may be unsure whether you’re making the right play. To create more confidence in your decision, here are seven questions you can ask yourself when choosing between outsourcing or insourcing your finishing process.

  • If you’re currently outsourcing, what are your finishing costs? Hiring a custom coater to do the work makes sense if your costs are low, but if you’re spending more than $500,000 a year with custom coaters, maybe it’s time to consider investing in your own system to save money in the long run.
  • How much customization is required for your finishes? If your finishing needs aren’t super complex, consider doing it in-house. However, some finishes require very specific equipment that may be hard to come by, expensive or difficult to replicate easily. In that case, outsourcing the work is a good bet, unless you have no conveniently located providers of those types of finish.
  • Do you find yourself at the mercy of your custom coater’s schedule? Maintaining an efficient operation that stays on schedule is important for a smooth, revenue-generating business. But professional coaters tend to work by batching items based on similar characteristics, especially by color. This makes their operation more efficient and helps you keep your costs lower, but their timetable may not suit yours, causing delays that range from days to weeks. Moving the work in-house can help remedy this problem.
  • Do you crate and ship your items to a coater that they ship back? 
    The crating and shipping process on both ends can not only be time and labor intensive, but it also opens opportunities for damages to your finish coat, requiring rework or a price concession. Plus, damages or defects can tarnish your brand image. These problems are best avoided by establishing an internal finishing process with high quality standards.
  • How much are you spending on shipping costs alone to outsource your finishing?
    Shipping isn’t cheap, and if the costs run your operation more than $50,000 a year on top of your coating costs, again…consider building your own system. This extra savings will help the total ROI, allowing a faster recoup for your investment.
  • How often do you find yourself changing custom coaters?

Maybe you switched because you needed better quality. Maybe you switched again because the finishing and/or shipping costs kept rising and you needed a more budget-friendly price. And then you switched, yet again, because you needed a custom coater that had greater production capabilities, provided better service or offered faster delivery. If you switched coaters multiple times in the past few years and had to absorb costs that come with each change, you may be able to save yourself headaches and cash by bringing the job in-house.

  • Do you wish you had better control over the items you currently outsource for finishing?
    If you do decide to consider insourcing your finishing processes, consider if you need an especially flexible system that can handle a wide variety of parts. Historically, most automated finishing systems have not been very flexible, but new options exist to change that. With an IntelliFinishing System you can make sure work is done to your superior level of satisfaction, and even quickly adjust the process (or recipe) as needed to coat items to the highest quality possible.

IntelliFinishing is a complete finishing systems provider. Our systems use revolutionary modular conveyors and smart control technology that is second to none. Recently, Jorge Martinez, owner of JR Custom Fabrication, decided to switch from outsourcing to in-house finishing. After his first year of using his new IntelliFinishing System, he states,

“Over the last 25 to 30 years we’ve outsourced our powder coating. We were spending upwards of a million dollars a year in outside coatings, and we decided to bring it in-house, not only for more control of quality but also of scheduling. It’s been a wise choice. We were spending over $100,000 on transporting costs alone. That completely goes away. There have been savings in handling and damage as well. Now, as soon as parts come off the finishing line, we inspect them for quality. If there is a problem then we address it immediately. And having control over the whole system is probably the biggest plus.” – Jorge Martinez 

Finishing in-house made sense for JR Custom Fabrication and it could be the smart play for your business as well.

Of course, if you are a custom coater and interested in an automated system, you’ll obtain greater system flexibility and consequently a wider range of coating options with an IntelliFinishing System.

Read more at intellifinishing.com

About the author

II
Industrial Iot

Industrial IoT: are you visible to AI?

Before they reach out, Industrial IoT buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one expert. Imagine publishing your whole team.

This article was produced through MarketScale. Create a free workspace and turn your own team's expertise into articles, video, and social posts. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Industrial IoT Insights

End-of-line automation is the next deployment frontier for manufacturers

End-of-line automation is the next deployment frontier for manufacturers

The article discusses the growing trend of end-of-line automation in manufacturing, as nearly half of manufacturers plan to implement it within the next 24 months. The focus is on what operations leaders need to consider for successful deployment. It highlights the importance of understanding technological adaptations and the operational benefits of automation.

  • 01Nearly half of manufacturers plan to implement end-of-line automation in the next two years.
  • 02Operations leaders need to assess technological needs and company readiness for automation.
  • 03End-of-line automation can significantly enhance efficiency in manufacturing processes.

Jul 10, 2026

Metalgear Engineering's assembly line overhaul pushed one manufacturer from 10 to 100 units a day

Metalgear Engineering's assembly line overhaul pushed one manufacturer from 10 to 100 units a day

Metalgear Engineering implemented an assembly line overhaul that allowed a manufacturer to increase its production from 10 to 100 units daily. The integration of custom PLC automation and a single-piece flow redesign were the keys to achieving this improvement. These changes led to a 40% labor cost reduction and significantly increased output for the manufacturer.

  • 01Custom PLC automation was crucial in increasing output efficiency.
  • 02Single-piece flow redesign contributed to a 40% reduction in labor costs.
  • 03The overhaul transformed production capacity from 10 to 100 units a day.

Jul 10, 2026

Behind every robot: why component supply chains are the real bottleneck in robotics scale-up

Behind every robot: why component supply chains are the real bottleneck in robotics scale-up

Automate 2026 revealed that robotics adoption is more hindered by supply chain issues than by AI and software limitations. The event underscored the importance of component availability in scaling up robotics. Without addressing these supply chain bottlenecks, the growth of robotics in the industrial sector may be stymied.

  • 01Component supply chains are the main bottleneck in robotics scaling.
  • 02AI and software are not significant limitations in robotics adoption.
  • 03Availability of components is critical for the growth of industrial robotics.

Jul 10, 2026

Explore More Industrial IoT Insights

Read more expert perspectives from across Industrial IoT.

Browse Industrial IoT Hub

About the Expert

II
Industrial Iot