Blog updated January 2022
The start of a new year is an obvious time to strategize for your manufacturing business, but really, any time is the right time to invest in strategies and initiatives that will help your business grow. Below are five areas manufacturing businesses should consider investing their resources in 2022.
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Workforce
The right people in the right jobs at your manufacturing business is key, not just to get the job done today, but also for the future. The people on your staff today directly impact how your business runs and how well it will run in the future.
There are three main pieces to investing in your workforce: retention, culture, and flexibility. Each ones relies on the strength of the other two. In order for you to retain the staff you have, workers need to be part of a positive work culture where they’re both supported in their position today, and has the flexibility to grow within your business in the future.
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Smart Factory Initiatives
Technology continues to change at a rapid pace, so it’s important that your business stay on top of modern technologies to maintain your competitive edge. A Smart Factory Initiative is the application of new technologies to help transform an operation into a flexible, self-adapting process. For example, investing in technology that connects the team maintaining your inventory with your manufacturing floor so the manufacturing floor has real-time data from the inventory crew can help reduce costs related to maintain inventory and staff overtime because you’ll never overproduce products. You’ll always know exactly where you stand on inventory, so you’ll have greater control and flexibility to adjust appropriately when you need to ramp production up or down.
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Digitizing Sales Through E-Commerce
Investing in an online platform that customers can use to connect with your business, in addition to making orders, is an investment in your business’ flexibility. Across almost all industries, customers continue to say they want the ability to order what they need, when they need it online. When customers are able to quickly make orders online, your team can more easily plan for the appropriate level of staffing and materials to more effectively fill orders.
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Cybersecurity
Along with any Smart Factory Initiative or digitization of sales comes cyber security. It is vital that your business invest and implement a cybersecurity program. An effective cybersecurity program will assess the current state of your business, establish a cybersecurity governance program, prioritize cybersecurity projects based on the risk assessment, and continue to assess and implement updated policies and technologies as needed. Cybersecurity is an ongoing investment – not a set it and forget it one-time project.
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Environment, Social, and Governance (ESG) Program Investment
Environmental and social issues matter to customers and investors more than ever, which is why making a long-term investment in an ESG program is beneficial to your business. Investors and customers want to see your business is invested in sustaining and bettering the world. Choosing an effort to invest in is deeply personal and should be something you are passionate about. Investors and customers want to know why an effort or cause is important to you and what your business is doing to support it. Authenticity and specificity go a long way to maximize the return on your investment in an ESG program.
More Information
Check the News section of CorriganKrause.com for more detailed information on many of the topics we discussed above. As always, if you have any questions for our professionals, please email info@corrigankrause.com.
Corrigan Krause Specializes in Manufacturing Accounting
If you’re unsure how to focus your manufacturing company’s efforts this year, the Manufacturing Services group at Corrigan Krause can help. Email info@corrigankrause.com for more information and sign up for our Manufacturing Services newsletter here.