original-equipment manufacturer

business

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July 1, 2026

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An original equipment manufacturer, or OEM, is a company that produces complex equipment by purchasing components from other manufacturers and assembling them into a final product. The term "OEM" is an acronym derived from "original equipment manufacturer." This business model, first documented in the late 1960s, is common in industries like electronics and automotive manufacturing, where specialized parts are sourced from various suppliers to create a finished good.12

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Original-equipment manufacturers incorporate the purchased goods into their final products, which are then sold to final consumers. Industrial resellers are middlemen—essentially wholesalers but in some cases retailers—who distribute goods to user customers, to original-equipment manufacturers, and to other middlemen. Industrial-goods wholesalers include mill-supply houses, steel…
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Original-equipment manufacturers incorporate the purchased goods into their final products, which are then sold to final consumers. Industrial resellers are middlemen—essentially wholesalers but in some cases retailers—who distribute goods to user customers, to original-equipment manufacturers, and to other middlemen. Industrial-goods wholesalers include mill-supply houses, steel…
Read More