How Can NAICS Codes Help You Diversify Your Sales?
Adopted in the late 1990s, the North American Industry Classification System (NAICS) consists of codes set up by the U.S. Census Bureau to separate manufacturers by sectors, subsectors, and industries. Most companies are familiar with this system at a high level, as it’s used by the government to collect, assess, and distribute data about manufacturing in 5-6 year cycles.
However, if analyzed properly, NAICS codes can be far more important than simple identifiers used for federal purposes – in fact, they can play an active role in your company’s long-term strategy.
If you’re looking to diversify your sales into new and growing markets, it’s important to analyze your competitors are already doing, and NAICS codes offer insight into some goods, services, and capabilities your competition is currently offering to their clients. The NAICS structure assigns two different sets of codes: a primary code based on the single manufacturing process that generates the largest sales for your company, and multiple secondary codes for your other (if applicable) major sales generating services. The majority of competing manufacturers – sometimes clients, even – are assigned the same codes, and targeted market research enables a company to compare and contrast what services they offer to what their competition may or may not be offering.
But how can you use this information to stay ahead of the pack?
First, if you don’t know your primary or secondary NAICS codes off hand, you can try to identify them via the U.S. Census website or by reaching out to MAGNET and utilizing our resources. Next, spend some time researching how your codes compare that those of your top competitors: How much overlap is there? Do gaps exist?
Second, brainstorm ways to differentiate your company from others in your industry. What processes and products do you offer that they don’t (and vice versa)? Are you marketing your top service offerings in a way that is consistent with your brand and value proposition?
Third, investigate options for further, more detailed competitor analysis. When applied appropriately, the NAICS system can lead to vetted customer prospects that would allow your company to penetrate new markets, thus diversifying your current offerings and generating additional revenue in the long term.
Finally, seek help from the experts at MAGNET. If you want to know more about how you can create top-line growth by harnessing the power of your NAICS codes, please contact Linda Barita at 216.391.7766 or email firstname.lastname@example.org to get started. You can also contact me at email@example.com.
One remarkable thing about the list is that it rarely changes. The order may change but the top cited standards typically don’t change. Top 10 Sited Safety and Health Violations: 501 - Fall Protection 1200 - Hazard Communication 451 - Scaffolding 134 - Respiratory Protection 147 - Lockout/Tagout 178 - Powered Industrial Trucks 1053 - Ladders 305 - Electrical, Wiring Methods 212 - Machine Guarding 303 - Electrical, General Requirements Three of the 10 sited standards are directed at the construction standard (1926) while other fall within the general industry (1910). It should be noted however that the general industry standard also has fall protection guidelines. Year after year, inspectors see the same on-the-job hazards, any one of which could result in a fatality or severe injury. More than 4,500 workers are killed on the job every year, and approximately 3 million are injured. By understanding these regulations you can improve your safety program and prevent injuries. Give me a call if you have any compliance doubts, or want to review OHSA regulations. Gwido Dlugopolsky at 216-391-7766 or firstname.lastname@example.org
Why does it take a NASCAR pit crew only 15 seconds to change four car tires when it takes people like you and me minutes? The answer is simple SMED. Single Minute Exchange of Dies, or SMED, is a process for reducing the time it takes to do equipment changeovers. Using the principles of SMED you should be able to perform any changeover in your facility in under 10 minutes! The SMED process is simple – convert as many changeover steps as possible to “external”, meaning they are done while your equipment is still RUNNING, while simplifying and streamlining the remaining steps. SMED is broken down into the following 3 Steps: Separate Convert Streamline We found this article to be very helping in explaining the SMED process in more detail: LEAN PRODUCTION - SMED A good first step to achieve this level of SMED efficiency would be to run a kaizen event at your facility to standardize (5S) your tools and supplies. Doing this alone will help you achieve 40% to 50% greater efficiency. Once the “low hanging fruit” is gone, you can still reduce setup times another 20% by practicing more advanced SMED principles.
The secret to closing any sale is to reduce uncertainty in the buyer and replace it with confidence in YOU, your PRODUCT/SERVICE, and your COMPANY. Step 1 – Confidence in YOU Someone buying from you wants to be able to fundamentally connect with you on a human level and feel confident that you’re an expert in what you’re selling If you’re selling paperclips, be an expert in paperclips If you’re selling design and engineering related services, be an expert in design and engineering related services Focus on addressing the problem, not the solution….MEANING you already know you have the solution, connect with the buyer by being an expert with the problem he/she is facing. Prove that you know the problem and all aspects of the problem like the back of your hand. Step 2- Confidence in the PRODUCT/SERVICE you are selling Someone buying from you needs to trust the product/service you are selling will solve their problem. It’s your responsibility to deliver a solution and the benefits associated with it. Basically you need to “Hit a Homerun” communicating this message. Tip – Use Success Stories: Share with the potential buyer examples of your product/service solving problems and delivering value for