The manufacturing industry is a significant contributor to economic growth in the United States and the world. The current industry has a market value of about eighty-six billion dollars. However, the COVID-19 pandemic has had several adverse effects on the manufacturing industry. But as new technologies and advanced equipment emerge, manufacturing potency worldwide keeps growing strong. As a business owner, fighting off these new realities and the need to scale the industry has become critical now more than ever. On that note, here are three survival tips for manufactures.
1. Have a Plan
Manufacturers rely on standard procedures and logistics efforts to ensure world-class production. Just as athletes need coaching, manufacturers need plans to direct efforts towards growth and significant levels of competitive advantage. There are several ways to create plans for manufacturing companies. One key element needed for every planning process is a goal. Another is to define your company’s proposition in relation to current marketing insights and opportunities.
That’s where consultants and seasoned leaders like Zach Mottl come in handy. Mr. Mottle is the fourth generation of his family to own and operate the Atlas Tool Works. He’s Atlas’s chief alignment officer (Cao) and serves on the Technology and Manufacturing Association (TMA) board of directors. At 35, he became the youngest chairman ever to spearhead their board meetings.
Zach is an advocate for the importance of domestic manufacturing in any healthy state or national economic model. With his influence, he sits on several boards, including the United States Manufacturing Council and the National Association of Manufacturers.
He’s also a trustee candidate for the village of Burr Ridge. Last year trustee Zach Mottl assumed his current role as chair of the Coalition for a Prosperous America (CPA), replacing Dan DiMicco. With their extensive experience, such business personalities might provide the insights you need in your plan for operational improvements.
2. Outsource Work
Leading a business to optimize operational efficiency is no easy task, especially in an industry such as manufacturing where regulatory requirements keep changing and tariffs keep increasing.
Outsourcing is a good manufacturing practice. It helps free businesses from cash-draining areas and focuses on highly efficient tasks. For example, a company in the fitness industry that provides clients with wellness products needs access to the raw material, processing laboratories, production facility, R&D, to mention but a few.
In addition to these, they need to deal with several quality standards and product testing issues with food and drug administration at almost every stage. In reality, only a few manufacturers have the financial and technicians to shoulder all these functions. The company can outsource to supplement manufacturers to relieve them from some of these numerous functions.
In addition to all the efficiency gains, the company will enjoy other perks like product warehousing, packaging, label design, etc. Manufacturing companies who tow this line tend to be successful candidates of lean management. And going lean has never been more essential than this post-pandemic era.
3. Automate Processes
Discussions about thriving manufacturing should never end without the topic of automation. Technology has afforded manufacturers the necessary tools to do more with less. Companies across all industries, from petroleum to automobile, can now leverage Robotic Process Automation and other machine learning innovations to cut costs and improve business value.
The concept of automation relates to the use of tech and big data to do repetitive tasks with less time and less room for mistakes and applies to almost every function in the manufacturing business. If you’re a newcomer to the automation journey, the first step might be to identify which business function needs optimum efficiency the most. You can then find matching software that’ll help you realize your automation objective.
Some automated tools may have open-source usage with free subscriptions. Others may require a first-time fee before usage. Many companies also opt for proprietary software for custom manufacturer benefits.