7 Best Strategies to Grow Your Manufacturing Business
7 Best Strategies to Grow Your Manufacturing Business
With hiring activity at historical highs and reshoring bringing production back to America, there has never been a better time for businesses in the manufacturing space. Buyers are spending more than they have recently on new suppliers - which means that you can afford some growth opportunities!
These days it’s not just about staying competitive; now is your chance to take advantage of digital marketing techniques to reach customers who would otherwise go unnoticed by traditional advertising methods.
Though larger manufacturing businesses tend to implement new technologies faster, there are still ways you can jump on the wagon and head to the same profitable destination.
Luckily, you can secure financing through manufacturing business loans to start making your business more profitable and achieve your expansion goals.
So, whether you’re looking to attract new customers, invest in new machinery, or improve production efficiency, several strategies can help you get there. In this article, we’ll outline the seven best strategies to get your manufacturing business thriving in no time. Read on to find out what they are!
Why 2022 Will be a Great Year for Small Manufacturing Businesses
The past year has been challenging for all businesses, especially manufacturing companies. But with restrictions and lockdowns coming to an end in 2022, many are optimistic that the economy will bounce back and life will return to normal.
Small manufacturing businesses, in particular, are witnessing a revival as the US-China trade war and economic policies are causing US manufacturing companies to rethink their operations.
Due to the pandemic, local online shopping has gained momentum, and support for small businesses has increased considerably. Small businesses looking to scale up and attract potential customers should have their hopes high in 2022!
As a manufacturing business owner, you also need to remember that the digital revolution and advanced technology have brought unique challenges to the industry. In the next part, you’ll learn how to conquer the biggest challenges in 2022 with these seven tips!
7 Best Strategies to Grow Your Manufacturing Business in 2022
There are many successful stories about small businesses making it to the top. But climbing to the top of the ladder can be challenging if you don’t have the right tools or strategies to help you get there.
Here are our top strategies to help you gain a competitive position in the industry and expand your business.
1. Focus on Supply Chain Management
The supply chain can be complicated and unpredictable when it comes to manufacturing. With multiple suppliers and overseas shipping common in today’s business world, many risks need managing.
Fortunately, you have some options for how best to handle these emergencies before they happen:
- Invest time into creating watertight contracts with your preferred partners.
- Ensure you always carry adequate stocks (especially safety stock)
- Consider having alternative sources or storing inventory offsite such as on consignment, so interruptions aren’t financially ruinous.
2. Manage Production to Ship Products Faster
Prioritize your small business manufacturing order queue, so your staff always works on orders logically.
If a line is already busy with a few orders, you shouldn’t pile up tasks on them. In contrast, a line that’s almost done with its order should be prioritized with receiving new orders.
So when a supply order comes in, remember to assign it to the first orders in your line to minimize prolonged work-in-progress (WIP) manufacturing and ship products faster.
3. Figure Out The BOM You Need
Inventory management is crucial to streamline your operations and keep your orders in check. Bill of materials (BOM) is a part of inventory management essential for your master production schedule (MPS). It typically includes detailed information about each product and instructions on assembling or repairing it.
There are many types of BOM, such as modular, configurable, multi-level, etc. It’s crucial to find out the best way to update your BOMs so that maintaining them and using them in your business gets more manageable.
Another critical inventory method you should consider implementing is lean inventory. This method, having its roots in Japan, is said to increase productivity in several ways:
Removing unused items in an area ensures employees don’t spend too much time finding something. More commonly used items should be easier to access and be grouped close to each other.
- Straighten, Set
Everything has a place and is always put back in its place. When your employees need a tool, they know exactly where to find it. If it is not there, they know it is used and don’t look for it.
Of course, there is no need for employees to be fighting over tools with adequate production planning. Find hierarchies and systems of storage, e.g., place heavy items lower, and so on.
Standardize by having a clear, readable, and accessible bill of materials (BOM) / product recipe. Make scheduling and operations clear through visual management.
Set out clear policies and guidelines, and ensure your staff is aware and understands the procedure standards. This is how you cultivate a good company culture with staff proud to say they work at your business.
4. Invest in Marketing Efforts to Increase Exposure
While traditional marketing methods are an excellent way to start making a buzz, if it’s been more than a year you’re in business, it’s time to think about a new marketing strategy, i.e., digital marketing.
Here are a few ways you can start leveraging the benefits of digital marketing:
Create a Professional Website and Get Your Business Listed
For a manufacturer, the web is one of the best ways to stand out from the competition. You can have a customized website that tells your company’s story, highlights your most recent innovations and technologies, and shows how you’re a leader in the industry.
You can also get your business listed on customer review sites to get more exposure and score additional traffic. You’ll also get to see what people think about your products, including what they like and have problems with.
Having your website listed on Google can increase the chances of people finding you when they browse locally. So if you want to expand your local reach, ensure you create a Google My Business Page.
Post Content on Your Site to Engage Customers
Use your professional website by posting valuable and relevant content related to your manufacturing business.
By offering your customers informative blog posts, engaging videos, and images, along with exciting press releases, you’ll be able to stand out from other manufacturers in your industry.
Your website or blog can also be used as a hub for exchanging information between you and potential customers. This will allow them to learn more about how you work, what you do, and what’s behind your success.
Connect with Your Community Through Social Media
Social media has become very popular and is becoming an alternative marketing strategy for many businesses. Today, there are so many social media sites that they all require unique approaches to stand out from the competition.
A great way to start is by creating a Facebook or LinkedIn page for your company. You can use these pages to connect with your prospects and customers, share your announcements and success stories, showcase new products or services you offer, and more.
Also, follow your competitors on social media to see what they’ve been up to. This will give you a chance to learn from the best in your industry so you can implement some of their ideas in your business operations.
5. Leverage Your Presence on E-commerce Platforms
Today, many manufacturers can identify the tremendous value of running their online shop. With this avenue, you can reach a much wider audience, penetrate new markets, and sell new products without having to get on a plane or invest in TV ads.
In addition, e-commerce is how more and more people want to make purchases. Start hosting your online shop, which will allow you to compete with the largest retail brands around the globe.
6. Collaborate and Redefine Your Business
Manufacturers are constantly evolving to remain competitive, but they often face new challenges along the way. When you feel stuck in a rut or don’t know what to do anymore, consider working with others in your industry who have similar interests and goals.
By teaming up with other manufacturers, you’ll be able to share knowledge, access complex technologies, expand your market reach, and boost your bottom line. You can forge a strategic alliance with another manufacturer, so you both benefit from each other’s expertise.
7. Reflect on Trends and Economic Changes That Affect Your Business
Finally, as a manufacturer, one of the most important things you can do is stay on top of changing trends and economic changes that affect your business. This way, you’ll be able to anticipate movements in the market, find new opportunities for growth and expansion, as well as identify threats that can affect your bottom line.
Invest in a Long-Term Growth Plan and Position Your Business for Success
Long-term success is based on a well-thought-out plan. You have to study the available alternatives and evaluate which one will be best for your company to succeed now and down the road when new opportunities arise, or conditions change around you again.
Growing a business takes not only considerable energy but also additional financing. At Select Funding, we can help you scale up and grow your manufacturing business through specific loans catered to the manufacturing industry.