Manufacturing businesses contribute about $2.25 trillion to the U.S. economy each year. Running a business that specializes in the manufacturing of a product can be both stressful and extremely rewarding.
The key to having a successful manufacturing business is adapting to new technologies and always looking for ways to make your operation more efficient. Resting on your laurels will usually lead to countless problems and may result in your having to close the doors to your business.
The following are just some of the unique challenges facing modern manufacturing companies and what you can do to overcome these issues.
1. Complying With New Regulations
Each year, new regulations are imposed on businesses operating in the manufacturing sector. Most of these regulations are aimed at making products safer and protecting the environment. While every business owner wants to do their part to protect both the planet and the consumer, complying with these regulations can be extremely difficult at times.
If your company uses a number of outside suppliers, you have to ensure they are compliant with these regulations as well. Developing a department within your company that focuses on nothing but compliance issues can be helpful. The money you pay these employees will pale in comparison to the fines you face from regulatory agencies like the EPA or OSHA.
2. Keeping Products Relevant and Current
Most manufacturers have a hard time keeping up with the dizzying pace of new product innovations. Failing to stay on top of these innovations can lead to the products you offer becoming outdated and unappealing to the modern consumer. If you have an idea for a new tool or product to use during the manufacturing process, be sure to use a rapid tooling prototyping professional.
These professionals will have no problem bringing your creations to life. Constantly reinventing the way you build products can help you stay relevant in your industry for a long time to come.
3. Dealing with an Aging Workforce
As time goes by, more and more baby boomers reach retirement age. This means that manufacturing businesses who have relied on the help of this generation are having to usher in a new group of younger employees. Many of these younger workers lack the skills needed to replace the older generation.
Doing things like instituting work-study programs is a great way to provide younger workers with hands-on training. Allowing older workers who are on the verge of retirement to train their replacements can help you avoid lulls in productivity in the future.
4. The Rising Cost of Healthcare
Offering prospective employees things like competitive and health benefits is essential when trying to attract top talent. The rising cost of healthcare can affect your bottom line and in some cases put your company in financial jeopardy.
The only way to combat the rising cost of healthcare is by shopping around with health insurance suppliers in the area. While finding a better insurance rate will be time-consuming, it is worth the energy you invest.
5. Keeping Employees Loyal
In the highly competitive world of manufacturing, keeping employees loyal is more challenging than you may think. The key to keeping your employees loyal is creating a company culture that is based on rewarding hard work. Offering your employees performance-based incentives will help you increase productivity and will allow them to increase the amount of money they bring home each pay period.
6. Making Sure Productivity Levels Stay High
Letting the productivity levels in your manufacturing business to decline will cost you a lot of money. One of the best ways to avoid productivity problems is by performing routine evaluations on your team members. These evaluations will allow you to see where problems existing. Once you have this information, you can easily address these issues before they affect your day to day operations.
Putting the right team members in place can help you keep your manufacturing operation running like a well-oiled machine. Failing to delegate to your employees will lead to you getting overwhelmed.