Every manufacturer has their own way of building products. Some produce products from a predefined set of options, while others design every order to meet unique customer requirements. Configure-to-Order (CTO) manufacturing produces products from a defined set of options and rules, while Engineer-to-Order (ETO) manufacturing designs products from scratch—or significantly modifies them—to meet individual customer specifications.
Understanding the difference between Engineer-to-Order vs. Configure-to-Order is important because each model affects quoting, engineering workload, production timelines, and the types of automation that can improve efficiency. While the two approaches are different, many manufacturers operate somewhere between them, combining elements of both depending on the product or customer.
Configure-to-Order vs. Engineer-to-Order at a Glance
|
Category |
Configure-to-Order (CTO) |
Engineer-to-Order (ETO) |
|
Quote complexity |
Moderate; based on predefined product options and pricing rules |
High; often requires engineering review before quoting |
|
Engineering involvement |
Minimal for each order after rules are established |
Significant engineering effort for nearly every order |
|
Typical industries |
Industrial equipment, HVAC, automation systems, configurable machinery, modular products |
Custom machinery, heavy equipment, process systems, structural products, specialized manufacturing |
|
Automation readiness |
Very high; product rules can automate drawings, BOMs, and documentation |
Moderate to high; repetitive engineering tasks can be automated while custom design remains engineer-driven |
|
Time-to-quote |
Fast, often minutes or hours |
Longer, often days or weeks depending on project complexity |
Although these manufacturing models differ, both can benefit from design automation—just in different ways.
Configure-to-Order (CTO) in more detail:
Configure-to-Order manufacturing allows customers to choose from a predefined set of product options, features, and configurations. Instead of designing every product from scratch, engineering teams establish the rules ahead of time, allowing products to be configured quickly while still meeting customer requirements.
For example, a manufacturer may offer multiple sizes, drive options, finishes, or accessories that can be combined based on approved engineering rules. Once those rules are established, automation can generate the required drawings, bills of materials (BOMs), and documentation for each order with minimal engineering involvement.
As Forbes notes, configure-to-order models tend to dominate in sectors with high standardization — such as automotive and construction equipment — where break-even points are directly tied to volume and operating leverage rather than one-off engineering effort.
Because product logic is predefined, CTO is often the most automation-ready manufacturing model.
Engineer-to-Order (ETO) in more detail:
Engineer-to-Order manufacturing is used when every project requires new engineering work or significant modifications to an existing design. Rather than selecting from predefined options, engineers create solutions that meet unique customer specifications.
This approach is common when products are highly customized, technically complex, or designed for a specific application.
Unlike Configure-to-Order manufacturing, ETO depends heavily on engineering expertise throughout the sales, quoting, and production process. While automation can't eliminate the need for engineering, it can reduce the repetitive tasks that accompany custom design, such as generating drawings, updating documentation, producing bills of materials, or applying engineering standards.
Where Configure-to-Order and Engineer-to-Order Overlap
Although they're often presented as separate manufacturing models, many organizations operate somewhere between Configure-to-Order and Engineer-to-Order.
For example, a company may have a standard product platform that customers configure with predefined options while still requiring engineering modifications for unique project requirements. Another manufacturer may automate routine components of a custom design while leaving the more complex engineering decisions to experienced designers.
This hybrid approach allows manufacturers to standardize what can be standardized while maintaining the flexibility needed for customer-specific solutions.
Understanding where your products fall along this spectrum is often the first step toward identifying automation opportunities.
How Design Automation Supports Each Manufacturing Model
Design automation can improve both Configure-to-Order and Engineer-to-Order environments, but the focus is different for each.
In Configure-to-Order manufacturing, automation captures product rules so outputs such as drawings, bills of materials, and documentation can be generated automatically. The goal is to reduce engineering involvement for routine orders, accelerate quoting, and improve consistency.
In Engineer-to-Order manufacturing, automation focuses on eliminating repetitive engineering work rather than replacing engineering judgment. Engineers still design custom products, but repetitive activities—such as creating standard assemblies, generating documentation, updating drawings, or producing BOMs—can often be automated to reduce manual effort and improve turnaround times.
In both cases, design automation helps engineering teams spend less time on repetitive processes and more time solving the challenges that require their expertise.
Autodesk's 2025 State of Design & Make report, based on interviews with more than 5,500 industry leaders across engineering and manufacturing, found that digital transformation and automation adoption are increasingly viewed as critical to operational resilience regardless of manufacturing model.
Which Manufacturing Model Is Right for Your Business?
The answer depends on your products, customers, and engineering processes.
If most of your products can be assembled from predefined options and engineering rules, a Configure-to-Order approach may help you shorten quote times, reduce engineering effort, and improve scalability.
If every customer project requires unique engineering work, Engineer-to-Order provides the flexibility needed to meet specialized requirements while still offering opportunities to automate repetitive design and documentation tasks.
Many manufacturers ultimately adopt a combination of both models, using standardized configurations where possible while applying custom engineering only where it adds value.
How Hagerman & Company Helps Manufacturers Automate CTO and ETO Processes
Whether your organization follows a Configure-to-Order, Engineer-to-Order, or hybrid approach, successful automation begins with understanding how your engineering team works today.
Hagerman & Company helps manufacturers identify repetitive engineering processes, define automation opportunities, and implement solutions that align with their products and workflows. From rules-based product configuration to custom CAD automation and engineering workflow improvements, we work with organizations to reduce manual effort while maintaining the flexibility their customers expect.
Explore our Configure & Engineer-to-Order services to learn how automation can support your manufacturing model, or visit our Design Automation services page to see how these capabilities fit into a broader engineering automation strategy.
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