Knowledge Base

I was reading not too long ago about some of the economic ups and downs for Georgia Manufacturing businesses over that last few years..

REHASHING THE PAST ......

Good old Textile manufacturing, one of Georgia's oldest industries, remained the most important industrial source of income until 1999 when output from food processing exceeded it. From 1997 to 2001, annual textile output declined 8.4% whereas output from food processing increased 12.1%. Other manufacturing areas were also increasing, so from 1997 to 2000, there was an overall 16% increase in Georgia's manufacturing output.   It was startling to hear that more than half of the gain was lost in the national recession in 2001, as manufacturing output fell 8.3% in one year, reducing the net gain since 1997 to 6.4%. The national recession of 2000 impacted Georgia's economy worse than most, as its annual growth rates at the end of the 20th century dropped abruptly to 1.5% in 2001. The state lost more than 133,000 jobs from January 2001 to October 2002. Layoffs in the fourth quarter of 2002 amounted to a 2.2% increase over the fourth quarter of 2001, the worst performance in the country.

TIPS FOR THE FUTURE ......

Advance 10+ years - what can we do to keep the Manufacturing Industry alive and profitable, retain jobs, grow your manufacturing business and overall, increase your bottom-line. 

Let's just start with the day-today trials.  It's been said that all too often, day-to-day business gets in the way of making a manufacturing business more successful.  In 2009, today's highly competitive, ever-changing world market, small-to-mid-sized manufacturers that want to continue their success need to do more than just build a product and hope for the best.  Business Executives "Manufacturers" need to look up from their desks and see what's happening to their business, customers and the market. Revaluate your marketing efforts, groom your existing customer lists and revisit old customers, see if new projects are available. Take a look at current market needs and see how your product fits.   Most business executives are often too busy with day-to-day fire-fighting and too close to the subject to look ahead and do what's necessary for success. 

So what's the answer?  Many believe that in order to stay profitable, manufacturers -- like every other organization -- must practice profit-focused strategies, including a planned profit model.   Walk the shop floor, check for bottle necks, check and double check your inventory logs, make sure your manufacturing website is one of your TOP marketing efforts and make sure everyone is onboard and actively contributing.  Don't rely on excel spreadsheets to track your progress and inventory, and don't rely on post-it notes and email to relay a message, make sure your presence is not just the picture on the wall or the voice behind the big door.   Everything has to be looked at and massaged and included in the planned profit model.