In-House BHS Manufacturing vs Outsourced — Why It Matters for Airports
- Jun 10
- 4 min read
When evaluating baggage handling system suppliers, airports often focus on price, delivery time, and references. One factor that is less frequently examined — but that has a significant impact on all three — is whether the supplier manufactures its own equipment or outsources production to third parties.
The distinction between in-house BHS manufacturing and outsourced production affects quality control, project timelines, customisation capability, and long-term after-sales support. Understanding this difference helps airports make better procurement decisions and avoid risks that only become visible during installation or operation.
In-House BHS Manufacturing vs Outsourced: Key Differences
The core difference is straightforward. A supplier that manufactures in-house designs, produces, and tests all equipment in its own factory. A supplier that outsources production acts as a project manager, sourcing components from third-party manufacturers and assembling them — sometimes on-site — under its own brand.
In practice, the gap between these two models is significant across every phase of a BHS project.
Quality control
When a supplier manufactures in-house, quality control is applied at every stage of production — raw material selection, machining, welding, assembly, and final testing. Non-conformities are caught and resolved before equipment leaves the factory.
When production is outsourced, the supplier is dependent on the quality management systems of its component manufacturers. Inspections may be limited to incoming goods checks, and the ability to intervene in production is constrained by contract terms and logistics.
For airport equipment that is expected to operate continuously for 20 or more years, the difference in manufacturing quality directly affects long-term reliability and maintenance costs.
Factory pre-testing
A manufacturer with its own production facility can pre-test complete conveyor sections and system components before delivery. This means electrical connections, mechanical alignments, control logic, and integration interfaces are verified in a controlled environment — not on the airport floor under construction site conditions.
Factory pre-testing reduces commissioning time, minimises the risk of on-site failures during acceptance testing, and gives the airport confidence that the equipment it receives has already been run under load.
Outsourced suppliers typically cannot offer factory pre-testing at system level, as components arrive from different manufacturers and are assembled for the first time on-site.
Customisation
Airport terminals are rarely standard. Low ceiling heights, unusual floor layouts, tight installation corridors, phased construction schedules, and non-standard conveyor lengths are common in both new terminal builds and renovation projects.
An in-house manufacturer can adapt equipment dimensions and configurations during production without affecting quality or delivery schedules. The engineering team that designed the system is in direct communication with the factory floor.
Outsourced suppliers are largely limited to the standard product catalogue of their component manufacturers. Custom requirements either attract significant cost premiums or are simply not available.
Delivery and logistics
When all components come from a single factory, delivery can be coordinated in installation sequence. The supplier controls the production schedule, the packaging specification, and the shipping logistics — reducing the risk of delays caused by third-party supply chain disruptions.
Outsourced production introduces multiple dependency points. A delay at any one component supplier can cascade through the entire project schedule. For airports with fixed terminal opening dates, this is a significant risk.
After-sales support
A manufacturer with its own factory holds spare parts inventory for every product it produces. When an airport needs a replacement part — whether six months or fifteen years after installation — the manufacturer can supply it directly.
Outsourced suppliers depend on their component manufacturers for spare parts. If a component supplier discontinues a product line, changes a specification, or ceases operations, the airport may face extended lead times or incompatible replacements.
For airports in regions where BHS expertise and logistics infrastructure are limited, direct access to a manufacturer's spare parts inventory and technical support team is a material operational advantage.
Cost structure
In-house manufacturing removes a margin layer from the supply chain. The airport pays the manufacturer's price, not a reseller's price built on top of a manufacturer's price.
For small and medium airports — where BHS budgets are tighter and the cost difference between suppliers can determine whether a project proceeds — this matters.
What to ask when evaluating BHS suppliers
Before selecting a baggage handling system supplier, airports should ask:
Where is the equipment manufactured, and by whom?
Can we visit the factory before contract signature?
Is factory pre-testing available, and what does it cover?
Where do spare parts come from, and what are the lead times?
Has the supplier delivered comparable projects with similar custom requirements?
A supplier that manufactures in-house will answer all of these questions directly. A supplier that outsources production may struggle to provide clear answers on the last three.
CITCOnveyors — in-house BHS manufacturing since
1999
CITCOnveyors is the international airport division of SELF TRUST, Romania's largest conveyor manufacturer. Every component in a CITCOnveyors baggage handling system — check-in conveyors, collecting conveyors, diverters, make-up carousels, reclaim carousels, self-service bag drop units, and passport control booths — is designed and manufactured in our own factory in Iași, Romania.
Factory pre-testing is standard on every project. Spare parts are supplied directly from our inventory. Installation and commissioning are carried out by our own specialist teams.
In-house BHS manufacturing has been at the core of our operations since 1999, across more than 100 airport projects on five continents.
