Growing your organization, whether for a larger market share or to expand into new markets, requires unique expertise and specialized experience. Expanding manufacturing puts your organization at risk in several ways, from new logistics challenges to predicting demand and troubleshooting issues in a new manufacturing facility. However, failing to expand when the moment is right can mean missing out on new profit growth and opportunities to increase your product base. Here are some things to consider before your company begins a manufacturing expansion.
One of the key aspects of a successful manufacturing expansion is good timing. When an organization begins positioning for market share growth, performance indicator data is an excellent way to time the construction of a new manufacturing facility to ensure success.
Balancing market data with projected cash flow allows an organization to time its expansion to meet growing orders as it scales production. Your performance indicators are also a good predictor of the appropriate scale for your expansion to meet new demands with an increased market share.
Planning a manufacturing expansion requires collecting and analyzing vast amounts of data. Some of the most critical data you need includes information about the equipment installed in a new facility. An engineering firm consulting on the expansion will provide equipment specification data for:
An in-depth understanding of specifications allows you to select equipment to meet your production forecasts and prevent early breakdowns and un-do wear and tear. Consulting with engineers provides an expanding organization with expertise to choose equipment that will enable their new facility to meet and exceed production expectations.
When you get an impact assessment from an expert engineering firm like Bothwell Engineering allows you to see and understand the expansion risks before they happen. A thorough impact assessment can eliminate much of the uncertainty of a manufacturing expansion.
Develop processes to optimize opportunities for growth while eliminating redundancies. Successful expansions aren’t the result of luck but using quantitative, well-analyzed data for decision-making.
No matter how much preparation you do for a manufacturing expansion, issues arise that need fast, incisive troubleshooting. New equipment requires adjustment and optimization to run as expected. There may be changes to a facility’s logistics to optimize efficiency.
Most companies rarely go through manufacturing expansion, so it’s hard to build a pedigree of experience. When you work with an engineering firm that specializes in start-ups, they’ve been through the process enough to recognize potential problems and develop solutions before they disrupt the expansion.
One of the risks of a manufacturing expansion is diverting your team’s attention from their everyday responsibilities and processes. Without outsourcing, management may be at risk of burnout. At the same time, their employees may make more errors, damaging your organization’s reputation.
Working with a project management firm of engineers provides an organization with support and expertise during manufacturing expansions. They can focus on running their organization, not managing the daily disruptions of a new facility.
The Bothwell Engineering team comes from diverse backgrounds. We bring an innovative approach to helping clients get projects to successful completion, providing been-there-done-that expertise to everything from equipment sourcing to installation and start-up troubleshooting. Whatever tools your organization needs to succeed and thrive in new endeavors. Get customized solutions for your engineering problems from experts striving to be the best in the field.
Contact Bothwell Engineering before you begin planning a manufacturing expansion for your organization.