July 24, 2024

Business Bib

Business & Finance Blog

5 Business Tips for Surviving in the Manufacturing Industry

3 min read

Although manufacturing has made up around 14% of gross domestic products (GDP) since the 40s, there has been a steep decline in employment. This is just one of the problems the manufacturing industry faces.

If you own a manufacturing business, the need to improve is always there. What are some things you can work on to survive the manufacturing industry in 2022?

Keep reading to learn five business tips.

1. Reinvent Products Often

Those in the manufacturing industry who reinvent their products often fare the best. In manufacturing, your mindset should be to put your money into new technologies that can better your services.

For instance, adopting the top ERP software for manufacturing can help with product development among other things.

2. Maximize Productivity

One sure-fire way to increase productivity is by enhancing product and process design. Manufacturing and product design teams should work closely together and develop an effective communication method.

Production-friendly components can help with reduced production time and lower labor costs. Take design ideas from your manufacturing business and apply techniques to decrease production time over time.

With this method, you’ll benefit by keeping labor costs low even when the economy sees improvement. You’ll be able to keep up with production pressure through lean manufacturing.

3. Pay Attention to the Supply Chain

Any manufacturing company has to deal with risks that threaten the supply chain.

Stay on top of suppliers to ensure that they don’t suddenly disappear. The costs involved in replacing a supplier at a moment’s notice are not something you’ll want to spend.

Your suppliers should also be focused on quality research and development during product manufacturing. When sourcing parts consider the global footprint cost.

4. Offshoring vs. Onshoring

For business survival, it’s essential to know the cost of products.

Poor quality of parts can come from low-cost countries. If this is the case for you, have your employees inspect everything in the shipping container to identify if anything needs to be scrapped or repaired.

Another issue involved in determining the cost of a product is logistics. The best way to know the cost of products is to use a new software tool that compares the costs of parts in various countries.

5. Improve Quality

A lot of manufacturers are delivering high defect rates. To be a successful manufacturing company, you’ll want to get these rates as low as possible.

Create a detailed plan of action to improve the quality of components. This plan should be based on improving first-time-through rates to avoid scrapping and reworking.

Aim to get something made right the first time to increase overall productivity and reduce costs.

Surviving in the Manufacturing Industry in 2022

If you have a focused drive on your business in the manufacturing industry, you’ll find success no matter the circumstances. To improve your business, reinvent products, maximize productivity, and pay attention to your supply chain.

To understand the total costs of products, know whether you use offshore or onshore shipping. Last, but not least, continuously try to improve quality.

For more business advice in the manufacturing industry and other industries, check out the other posts on our blog.