What is the role of original equipment manufacturers (OEMs)?

Original equipment manufacturers (OEMs) primarily execute design blueprints provided by other firms. This means they take the specifications and designs created by other companies and use their manufacturing capabilities to produce components or complete products. This role is critical in various industries, such as automotive and electronics, where OEMs help businesses bring their ideas to market without having to invest heavily in manufacturing facilities.

The focus of OEMs is not on branding or creating new technologies themselves but rather on providing the manufacturing expertise and infrastructure needed to produce high-quality products efficiently and at scale. By leveraging the designs made by others, OEMs play a vital part in the supply chain, facilitating innovation for companies that may specialize in design, marketing, or other aspects of product development.