A third party manufacturer is the same as a contract manufacturer. The third party contract manufacturer is a company that specializes in building the products of other companies under the other company's label or brand name.

Is third party manufacturing profitable?

When the products are in high demand, the third-party production becomes highly cost-effective. The product owner can negotiate on better prices based on bulk production. The third-party manufacturer will fulfill the additional requirement at concessional rates as it will increase their profitability as well.

What is the difference between contract manufacturing and third party manufacturing?

In third party manufacturing, there is no time compulsion to deliver the goods whereas contract manufacturing has delivery time compulsion. Mostly small companies work at the basis of third party manufacturing whereas medium size and big companies work at contract manufacturing basis.