I’m hearing from more and more manufacturers that their business has bounced back from the “Great Recession” and in a lot of instances, is even booming.
Some of these manufacturers have put initiatives they were working on when times were slow on the back burner as they try to manage their new-found growth, including diversifying into other markets/industries. While these companies are focused on the “now,” there are some companies who realize that if they are going to “win the future,” now is the time to work on, build and implement key strategies which will position them for long-term success. Here are some examples of forward thinking manufacturers, who, while navigating through rough waters, have their eye firmly fixed on the horizon:
A medium sized manufacturer who worked with MAGNET to develop and implement a Strategic Plan which had a key strategy to diversify into new markets during the “Great Recession” has just enjoyed a $1-million increase in sales over the past year and has made in-roads into several new markets. Business looks to be up another 25% this year. So what are they doing now? Stepping back to enjoy and manage their success? No. They are re-doing their Strategic Plan to focus on the “new normal” and gearing up to find additional new markets for key products.
A small manufacturer that does a lot of work for the Oil and Gas industry started looking at the Aerospace market during the “Great Recession.” He attended key conferences, met with key customers and invested in equipment and AS9100 certification (the Aerospace ISO standard) to position himself to penetrate this market space. He hasn’t been successful yet in securing new business in this market segment and his own business has come roaring back. So what is he doing now? He’s investing again in his market diversification efforts by upgrading his AS9100 certification to AS9100C to ensure he stays compliant with the standard so he can make that market in-road when the opportunity presents itself.
A medium-sized manufacturer has enjoyed double digit growth for the past two years. At the end of January, their business was up 72% over the previous month. So what are they doing now? Looking at acquiring a company with complimentary product lines that would move them into new markets.
What do all of these companies have in common? In good times and bad, they have not lost their strategic focus. They recognize that market diversification is not just a survival tactic, but a key strategic growth initiative which will position their companies to stay strong during any economic cycle and enjoy long term success.
So what are you doing now? Leave a comment and tell us about it, or e-mail me! We’re interested.
Article submitted by Bank of America For mid-market companies, business success and responsible growth aren’t mutually exclusive. In fact, prioritizing responsible growth is becoming increasingly important, and successful companies are making sustainability central to their growth strategies. Beyond good corporate citizenship, they are recognizing the intrinsic link between the strength of their business and that of the communities and economies in which they operate. Leading your growth with those goals in mind builds resilience and better solutions for the future. Consider the following: Responsible growth companies perform better. Companies that consider the impact of risks and opportunities on the environment, local communities and society may produce better financial results than those that don’t. Additionally, 90% of companies believe a sustainability plan is important for remaining competitive. Responsible growth companies attract investment. A 2016 study by MIT Sloan Management Review and Boston Consulting Group surveyed 3,000 executives and managers from more than 100 countries. Findings revealed that 75% of senior executives in investment firms agree that a company’s sustainability performance is materially important to their investment decisions, and nearly half would not invest in a company with a poor sustainability record. Ninety percent of executives see sustainability as important, but only
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