Last Updated on Mar 27, 2020 by James W
Are you thinking about starting a new manufacturing company this year? Well, you’ll have to work hard to ensure you beat the competition and steal the lion’s share of the market. That is especially true when your competitors use factories in countries where labour is cheap. Most people think that bringing the industry home is an excellent idea because it will create many new jobs. However, you’ll sometimes feel like you’re fighting an uphill battle without the right advice. That is why we’ve released this post today. It should help you to make headway and give your company the start it requires.
Rent the cheapest suitable premises you can find
Many new business owners get hung up on the location of their facilities. In truth, it makes no difference in most instances for those in the manufacturing world. Your drivers will have to cover considerable distances, and so you should stress about where you’re based. Just contact commercial real estate agents and ask to see their best deals. The only issue that might cause concern relates to staffing. Try not to base yourself too far away from a small town or city for the best results. That way, you won’t have any trouble attracting dedicated workers.
Make automation your goal
While it would be nice to offer thousands of jobs to people from the local community, you’ve started a business to make money. That is why making automation your goal is in the best interests of your operation. Technology has progressed to a stage where most companies try to remove the need for human interaction. Using robots to produce your products is often more cost effective. The biggest expenses you’ll face will relate to repair costs and replacement parts. Sprockets, gears, and valves are sure to deteriorate over time. So, you just need to build a relationship with suppliers before implementing your automation ideas.
Look abroad for manufacturing materials
Basing your business in our home country is a brilliant move. However, it means you’re exposed to higher material prices and increased wage bills. Thankfully, there are a few ways you can rectify the situation to compete with your foreign counterparts. One fantastic way of saving money involves purchasing your materials from the same sources. You might have to pay inflated import fees, but it often works out much cheaper than obtaining the items at home. All responsible business owners will research any supplier ahead of time to make sure their processes are acceptable. Like it or not, some African and Asian companies still use child labour. You don’t want to get involved with all that.
You should now have a good idea of where you can make the most substantial savings in your manufacturing business. We’d like to take the opportunity to thank you for keeping your company down under and not launching the venture abroad. With a bit of luck, the information in this article will help you to make a profit without resorting to such measures. Now you just have to work out which products you plan to produce. Unfortunately, we can’t help you there.