The cost-of-living crisis has affected all businesses. However, one type of business that has been affected more than most is manufacturing businesses. In fact, research has shown that in the past year, the number of insolvencies in the manufacturing sector has increased by over 60%, with over 1400 businesses going bankrupt and many others wondering how they will continue in the future.
The good news is that there are several things manufacturing businesses can do to reduce their costs and stay in business. Not only can they use cheaper materials, but they can also consider making use of leftover materials.
However, these aren’t the only ways businesses can reduce costs. One of the best examples that can help reduce costs and generate more profit in a manufacturing business is increasing productivity and efficiency. But how do companies do this?
If you want to know how to improve productivity and efficiency in your manufacturing business, here are some of our top tips to help you:
1. Maintain Your Machines Regularly
Lots of companies choose not to or forget to maintain their machines regularly. However, this can have a detrimental impact on your business. While maintenance can be inconvenient, it is essential if you want to prevent your machines from breaking.
Servicing your machines regularly not only allows you to spot issues before they arise but also helps reduce downtime. This is especially important for manufacturing businesses that have small profit margins.
2. Purchase Better Tools
While most businesses don’t like the idea of spending money in the present climate, if you want to save money in the future, you will need to invest in better, more efficient tools. You don’t necessarily need to replace all of the tools in your business. Instead, you should focus on purchasing specific tools that will help you to improve the manufacturing process.
An air compressor is a fantastic tool that can help manufacturing businesses improve productivity and efficiency. C&B Equipment has a range of air compressors that can help you with this. Visit https://cbeuptime.com/ to find out more.
3. Consult Your Team
One of the best pieces of advice we can give you is to talk to your team. Evidence suggests that most business owners choose not to speak with their team of employees. However, this can be detrimental to the business.
There are many benefits to talking to your team. Not only will they be able to give you an insight into any issues they face on a daily basis, but it also helps keep them engaged. If your employees are engaged, they are much more likely to be productive.
4. Put Employee Training First
Your employees are the best place to start if you want to improve business efficiency. In fact, a recent survey showed that the training and devlopment of employees led to an 8.6% productivity boost.
5. Automate Processes
Evidence suggests that automating processes in your manufacturing business will not only save you time, but it can also save you money too. While having the human element in a business is nice, not all jobs need to be completed by hand.
6. Data Tracking
Manufacturing businesses collect a considerable amount of data each year. This data can be used to create efficient, productive workflows. However, while this may be true, many businesses are unsure how to read and understand the data they’ve collected.
The good news for people who don’t know where to begin when it comes to reading data is that this job can be outsourced to specialists who know what they’re doing. They will be able to give you all the information you need to make your workflow more productive and efficient.
7. Optimize Your Inventory
Another great tip is to optimize your inventory. This includes both your finished products and your raw materials. This option costs very little money, and almost all manufacturing businesses can do this.
Over the last few years, thanks to the cost of living crisis, we’ve seen an increase in the number of manufacturing businesses struggling to stay afloat. While this may be true, there are lots of things businesses can do to help increase their chances of staying open. For example, they can find ways to cut costs in their business. One way they can do this is by improving productivity and efficiency in the workplace. If you own a manufacturing business and want to improve productivity and efficiency, make sure you follow our tips above.