After a difficult year (to say the least), there’s good news for the manufacturing sector. Demand for fabricated metal products has recovered from an 8% drop during , and is set to grow by 1.4% year-over-year until .
But while growth is good, fabricated metal manufacturers can’t rely on market recovery alone to boost your bottom line. Over the past 12 months we’ve seen the impact of massive supply chain disruption. The cost of raw materials has – and will continue to – fluctuate. The political and economic climate is eroding global free trade. So, how do you run a profitable business while navigating these forces outside your control?
Instead of worrying about the things beyond your reach, the best thing to do is take command of the things you can control. Like maximizing the speed and efficiency of production, to put your operation in the best possible position for whatever the future holds.
Aptean is already empowering manufacturers to get their organizations future-ready. And we’ve put together five tips to help your business increase production—drawn from our experience working with companies in the fabricated metal industry…
First and foremost, to increase production, you need to know what your pipeline looks like and where your biggest customer opportunities lie. This will enable you to manage workflow effectively, bring resourcing in line with production and shape business development.
The better you can plan and manage demand, the closer you can align forecasted activity with your product development strategies and engineering output, so that you’re always on the front foot. These things working in harmony will build strong foundations for a smooth, efficient production line—which uses every minute of uptime to drive profit.
How do you do get to this point? Many fabricated metal manufacturers are achieving alignment using an ERP solution, which synchronizes workflow with business strategies. Manufacturing ERP software will give your organization complete visibility of current and future workload, to increase strategic control and rationalize decision-making.
The best production lines are formed of tightly integrated processes. Your business needs to make sure that every element – from job quote to shipment – is part of a seamless chain.
To make this happen, look at your current production journey to understand where weaknesses and inefficiencies lie. Even small ‘tighten-ups’ can make a massive difference to your production speeds.
This review is also a great opportunity to assess the operational technology you’re using, to see whether it’s time for an upgrade. Ideally, your manufacturing ERP software should be able to go beyond process optimization and integrate other solutions—such as your CAD system.
Integrating CAD design with production will enable you to introduce time saving processes, such as pushing design changes directly into the ERP. You’ll also be able to automatically generate a bill of materials when your customer approves a design.
Even if your system is well integrated, if you’re not using a manufacturing ERP to automate everyday operational tasks then you’re not maximizing output. And you risk falling behind better prepared competitors; 63% of global metals manufacturers are considering investing in automation if they haven’t done so already, to accelerate their recovery post-COVID-19.
If you want to increase production, visibility is really the core objective. If you don’t have a complete, accurate overview of current and upcoming workload, it’s very difficult to plan materials and people, to optimize your time and resources.
Investing in manufacturing ERP software gives you 360-degree data insight, to help you control what’s happening now and prepare for what’s coming up. And software developed specifically for the manufacturing sector can also include built-in features that will supercharge your production capabilities.
For example, some manufacturing-specific ERPs allow you to record and manage people’s specific skillsets and certifications, so you can source particular people based on the jobs about to go live. This way, you should never have to endure a human capital or materials bottleneck again.
The right software will also enable you to distinguish between inventory that is available to promise, and inventory that has already been allocated to scheduled jobs—so you’re never allocating the same materials twice.
Most importantly, manufacturing ERP software will give you the dynamic capability to react to real-time events and make in-the-moment changes. With this level of flexibility, you will never lose production momentum due to unforeseen changes. And you can feel confident in the delivery dates you set with your customers.
Optimization of available inventory is a needs-must for business growth. But to take production to the next level, your business needs to be looking toward dynamically managing resources.
Using the technology already at your disposal effectively will allow you to take on a diverse range of jobs while maximizing production uptime.
For example, with manufacturing ERP software in place, you can improve the way you schedule assets and processes to increase productivity. This could include grouping ‘like’ jobs together, to reduce machinery set-up changes—rather than just plowing through jobs in chronological order.
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By making the most of how each machine is used, you can find the optimal mix between standardized component production and bespoke, build-to-order programs. This opens the door for attracting new jobs and customers.
Ultimately, you’re not looking to increase production for its own sake. You want to increase business profitability. And while some jobs are possible to execute, their true cost to build erodes profit margin.
Every strong industry player is fine tuning the way they build components and products. Maximizing time and cost efficiency may not be enough to lead the market.
Integrating all your processes through one manufacturing ERP solution does way more than improve production rates; it gives your business insight into production’s impact on your bottom line.
Rather than blindly taking every opportunity, interrogate your data to understand the true cost to build. Use manufacturing ERP software that integrates quotes with the cost of materials and provides feedback on the actual cost of each job, to track your profitability.
Then focus on the jobs that your business does best, in order to make the most money with the resources you have available.
With four years of growth on the horizon, it’s time to get your house in order. To look at where your operation can be optimized to deliver jobs quickly and cost effectively.
This will vary from business to business. However, if I was to give fabricated metal manufacturers one piece of advice, it would be this:
The more you can see and control what’s happening in your business, the smarter your decisions will be. And the quicker you put smart decisions into action, the faster your profitability will increase.
The right manufacturing ERP software will unlock this value for your organization, delivering all the functionality you need to increase production.
Aptean’s ERP is already empowering fabricated metal companies to run quicker AND smarter. For example, our ERP software has enabled The Metalworking Group (MWG) to increase on-time, in-full delivery to 86% in less than 12 months of going live. And we’re ready to help other fabricated metal companies increase production by driving more profitable business decisions.
Interested? Download our ebook: 7 Reasons Your Fabricated Metal Company Needs an Industrial Manufacturing ERP to start running at speed in a complex world.
Do you have custom metalwork that you need completed? Whether you need industrial, commercial, or residential metalwork done, a local metal fabrication company may be the right answer for you and your company. P&D Metal Works — located in Neenah, WI — has provided quality custom metal fabrication for homes and businesses in the Fox Valley area for more than 20 years. Take a look at our list of the Top 5 Reasons to Choose a Local Metal Fabricator and find out why P&D Metal Works is the right choice for you.
There are many reasons why you may want to work with a local metal fabricator to get your project completed. Possible benefits of a local metal fabricator can include proximity, reduced costs, more efficient manufacturing, and the chance to support the local economy. Here is a better look at the best reasons why you should work with a local metal fabricator like P&D Metal Works in Neenah, WI.
When you order custom metalwork, you will be faced with higher costs and expenses than purchasing pre-made products — which can include shipping and transportation. When you work with a local metal fabricator, you will benefit from reduced shipping and installation costs that metal fabricators across the country cannot match.
Do you need help with the design of your custom metal project? When you choose a local metal fabricator, you will benefit from improved communication and collaboration. The close proximity means you can benefit from face-to-face communication and collaboration that ensure you get exactly what you want how you want it. Improved communication and collaboration means less risk of mistakes and less wasted time.
Is your project on a tight timeline? Local metal fabricators may be the right choice to help you make your timeline. Local orders need less lead time, provide shorter delivery and pickup times, can provide continuous production, and will improve communication and collaboration that all contribute to reduced and more efficient production timelines.
When you choose a local metal fabricator to work with, you can trust that you will receive expert service for your project from someone that you know. Local metal fabricators may have specific products, services, and processes that they provide and you can choose the metal fabricator that best fits your needs for your project. When you choose a larger metal fabrication shop that is outside of your local area, it may have the capabilities to complete your project, but not the expertise that you had hoped for.
If you are a business owner in your community, you know the value of local business and commerce and how much it can mean to communities, families, and businesses in the area. When you decide to work with a local metal fabricator, you are creating a ripple effect that benefits far more than just that company.
READ MORE: Where To Buy Custom Metal Lighting Fixtures in Wisconsin
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