Rules, Rules, Regulation and B2B Sales and Marketing
The manufacturing sector, like so many other sectors, is facing increasing regulation and compliance measures.
Everything from disposal management and employee health and well-being is tied up in red tape. Some regulations are essential such as health and safety, others can be a massive burden to manufacturing companies.
Particularly when they vary from country to country and as with many sectors not just manufacturing it is facing the prospect of increasing regulation, due from environmental issues, health and safety, to waste management. This creates a lot of red tape which has a financial impact on the business. This impact can be multiplied due as business is now on a global scale and every region will have different rules and regulations from country to country. This means that manufactures must have total transparency through a company's supply chain with compliance rules in place that everyone can see and adhere to. An example for this are materials from conflict torn countries, for example Intel have such a system in place...
Companies that function highly regulated sectors, such as medical devices, are facing new regulations such as UDI (Universal Device Identification) and ePedigree requirements, for chemical and electronics manufacturers have to navigate REAC (Registration, Evaluation, Authorization, and Restrictions of Chemicals) and other laws. Keeping up to date on all new regulations and managing your reporting will be on going challenge. This will impact on Sales and Marketing as this part of any business is always changing best win and server new and existing customers...
Innovation and Product development
The consumers thirst for ever improved and new products is moving at a breath taking speed. This is also increased by the fact that every company wants to produce the next ground break, market grabbing innovation. When company invests in a new product line, there is always a temptation to cut corners, which tends to have an impact on quality and brand, which can put pressure on the manufacturing marketing b2b sales to get results on a potentially flawed product.
There the MD, CEO, CFO has to lead the front line on Quality... This is best overcome by having a highly structured product production pipeline that have Cost and Quality control working together to get the best results.
The Manufacturing Skills Gap
While this is a challenge, manufacturing firms will be suffering from a skills gap due to the pay gap that now exists, this is due to the technology and banking sectors taking some of the best and brightness minds (so not banking).
Also as industries become ever more automated, this has accelerated the skills gap. As the older work force retires and the same jobs have been transferred abroad, these skills are being permanently lost and has to be re-imported at a greater expense. Manufacturers need to work with schools and universities in their communities to ensure that manufacturing focused subjects are being well promoted and taught. In addition, manufacturers need to bridge the gap by encouraging their older employees to gradually slow down into retirement, passing on valuable skills to younger employees during a transition phase.Environmental concerns and considerations
While it is undeniably good news for the local environment and employee well-being, sustainability and environmental regulations can be expensive for manufacturing firms. If we take a short term approach, Manufacturing firms could miss out in developing new products and services that could take advantage of new regulations.
Balancing Maintenance With Throughout
Short term thinking is a the death of many companies. In manufacturing this has been known to end a great business. Keep your equipment in good functioning condition and keep the corresponding parts in stock. For example a big mining company, did not want to spend a few thousand dollars on holding a spare part in stock, all in the name of cost savings. An important part failed, the part had to be flown in, on a private jet while costing a few million a day in lost production (not sure how that makes sense).
Manufacturers need to perform preventive maintenance on recommended schedules to keep operating costs low and throughput high while helping to ensure worker safety. When the leadership team can implement, execute and improve on these four points we will have a company that will grow in the best and the worst of economic conditions.