There are many benefits to using escrow in contract manufacturing, including:

Protection of IP: Escrow can help to protect IP by ensuring that it is not misused by the manufacturer. This can be especially important for companies with valuable IP, such as pharmaceutical companies or technology companies.
Reduced risk: Escrow can help to reduce risk for both the manufacturer and the customer. For the manufacturer, escrow can help to protect against the risk of the customer not paying for the products. For the customer, escrow can help to protect against the risk of the manufacturer not delivering the products or not meeting the agreed-upon quality standards.
Increased efficiency: Escrow can help to increase efficiency by streamlining the contract manufacturing process. This can be helpful for companies that need to produce products quickly or in large volumes.