Carlisle are strengthening the squad over the summer with experienced players, and Collins is sure that the added competition for places will bring success.
Bury midfielder Chris Billy has already agreed a deal, while the club are in talks with midfielder Danny Sonner and experienced third division strikers Lee Thorpe and Barry Conlon.
Collins told the News & Star: "There is a challenge to every player in the squad. Right through the team there will be a mix of youth and experience.
"There will be massive competition, and that is what brings success. Last year we put down the foundations, now we are building on that."