Two years ago, his company went through its first downsizing, cutting the staff of 110 by about 10 percent, using temporary workers and subcontractors instead.

There is an important distinction between using contractors and subcontractors.

The company does not actually own any factories on the mainland, but uses Chinese subcontractors in manufacturing.

The company had to use subcontractors for high costs.

For example, a large nonminority contractor winning a bid may be required to use some minority and female subcontractors.

For more detailed information, see our guide on using contractors and subcontractors.

See our guides on taking on staff - the options and using contractors and subcontractors.

The Americans were obliged to use subcontractors from these countries in areas where they were competitive.

So using subcontractors instead of having a large staff allows the contractor to save money, which means he can charge you less.

Evrell started using subcontractors and concentrated construction and production to knives.