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In this video made by , the Florida-based contract manufacturer describes what it sees as the “third industrial revolution.” Today’s ease of data transfer permits a manufacturer with an IT-based business model to work collaboratively with customers, developing new products through iteration. The company calls this model “cofacturing.”

It is a model that favors manufacturers of a certain size, the company says. While small shops have difficulty scaling upward and often don’t last past the career of the founder, large manufacturers have difficulty meeting short-term, low-quantity production needs. Federated’s medium size permits responsiveness for tight-lead-time work, while also providing some of the advantages of scale. By means of the hub-and-spoke model illustrated in this video, the company aims to spread its talent and capacity around the country by having satellites in various market areas.