2020 was a challenging year for businesses worldwide. Factors such as the outbreak of COVID-19, increasing cost burdens, and intense digital competition have led to many companies having a bleak possibility of survival. According to a survey by The National Association of Manufacturers, 53% of US manufacturers anticipated adjustment in their operations due to the pandemic. Quality was affected in the process as manufacturing businesses employed innovative and cost management measures. However, quality is key to achieving success for any manufacturing business. Follow these survival tips to find your way through these times and improve business success in a very competitive market.
Maintain your focus
In the last few years, the manufacturing industry has been characterized by the infusion of new capital resources while companies moved in several directions all at once. This led many businesses to barely tread water following the 2020 chaos. When making decisions, it is critical to settle on choices based on your type of business and readiness to stay in the game. Innovative and smart businesses maintain their focus, utilize advanced tools, and keep financial shrewdness when spending to build their business core. Businesses who are remaining focused during the pandemic will ensure they emerge robustly from the industrial nose-dive.
Stay ahead of competitive threats
Some businesses’ failure to perform strategic cost analysis in measuring inflation’s effect on their positions has contributed to their downfall. Examining all your costs from supply to retail mark-up will help establish the right price. This will allow you to preserve competitiveness in the marketplace while maintaining your bottom-line. Likewise, it would be best to explore what measures are being employed by your competition. When you do, you can become financially savvy and compete in the price market.
Enhance your productivity and speed with the right tools
Your business can’t stay ahead of the competition without the proper tools and innovations. This goes beyond having the best technology and assets as you will need the tools to keep in touch and work solidly as a group both on and off the field. For a manufacturing business, investing in the right tools, like cutting tool blanks, is essential for performance and productivity. For smartphone producers, consider upgrading your products with the latest bionic chips and enhanced hours of talk time.
Improve quality
With many manufacturers still delivering components with increasing defective rates, smart businesses can achieve a competitive edge by reducing these rates. It is essential to have a comprehensive plan to improve the nature of the parts produced. Small manufacturing businesses should increase their first-time through-rates by decreasing scrap and the need for rework. Although a 90% first-time through-rate is desired, it is unacceptable if you are looking to enhance your productivity and manage costs effectively. Several studies have shown, investing in progressing defects and fixes is costly compared to funding for root cause analysis.
It is critical to have an unwavering attitude and robust strategy for your business. Difficult times will arise in any industry; don’t make quitting an option. Implement strategies such as these to maintain and create a thriving manufacturing business. Here’s to YOUR success!
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Executive, and Leadership Coach. She is the President of Infinity Coaching, Inc., where she can help you up-level your skills so that you can up-level your income, career, business, or life. Infinity Coaching, Inc. provides organizational training and one-on-one and group coaching. She is also the host of “Let’s Coach with Carolyn.” You can listen to the show on Spotify, Apple Podcasts, Stitcher, or wherever you enjoy listening to podcasts.
