INDUSTRY VIEW
Manufacturing
Cosmetic Producer • Toys Producer • Sign Makers and Printing
THE NEW NORMAL
What Has Changed?
1
Securing Sales
COVID-19 slowdowns have pushed manufacturers to open up online ordering and other sources to acquire sales. These channels may have been underutilized or have not previously existed in these companies.
2
Scrambling Supply Chain
Businesses in manufacturing face multiple challenges in supply chain and distribution including changes in transportation, issues with the availability of raw materials, delays, and issues with storage, warehouses, and inventory. Alternative sources have only been found for transportation.
3
Dangers with Debt
Besides a reduction in demand, debt repayment was the top challenge faced by manufacturing companies, and forgiveness of debt was considered most useful, in addition to loans and grants.
4
Manufacturing Essentials
Given the right equipment and raw materials, some manufacturers were the first to pivot to producing high-demand medical supplies, including hand sanitizer. This can provide an advantageous source of capital both in the short-term and long-term as consumer behavior and government policy shift in response to the pandemic.
5
Reshoring
COVID-19 challenges with supply chains coupled with years of ongoing reshoring trends are causing more manufacturing to return to the United States.
6
Ordering in Bulk
The COVID-19 pandemic is increasing consumer focus on health, long-term sustainability, and affordability. These trends will likely increase preference for one-time quality purchases or bulk options for the long-term rather than re-purchasing items.
RECOMMENDATIONS
How Should I Recover?
PHASE 1
Onset
Prepare your business for your local state’s reopening process
- Analyze the latest data for manufacturing trends to prepare for long-term COVID-19 impacts.
- Explore the National Association of Manufacturers (NAM) page of COVID-19 resources, including survey results and webinars.
Establish and enhance websites for online sales and ordering
- Lynda.com offers various online video courses for website development, software, business skills and other professional skills. Logging on with local libraries like the King Country Library System and Seattle Public Library cards offers free access.
- Consider hiring a university student or recent graduate to help build or improve a website. Due to COVID-19, many college students are looking for internships and job opportunities to replace those lost due to the pandemic. Post a job offering on Handshake.
- Take advantage of
Connect with company and legal advisors to prepare for incoming tariffs, sanctions, and regulatory changes
- The United States International Trade Commission provides trade statistics and tariff data through its USITC Data Web interface as well as a Harmonized Tariff Schedule that lists the latest information for various categories of imported products.
PHASE 2
Oscillation
Ensure the health of workers following federal COVID-19 safety guidelines
- The National Association of Manufacturers (NAM) released a set of new operational practices to consider following COVID-19.
- Lear Corporation released an in-depth COVID-19 Pandemic Preparedness and Response Work Playbook that provides an interactive guide for manufacturers.
- See here for the OHSA COVID-19 safety guidelines for the manufacturing industry.
Re-assess products, supply chains, and business models
- Analyze whether current raw materials and processes can enable the production of PPE such as cloth masks, hand sanitizer, gowns and gloves.
- With changes in consumer demand, consider retooling existing equipment for new types of products . Rethink your supply chain with the Foundation for Manufacturing Excellence.
- Consider finding creative ways to test new products.
- Have marketing tools ready for launching new products.
- Prepare for disruptions in domestic supply chains.
Find ways to utilize excess manufacturing capacity
- Work with university incubators such as UW CoMotion, startups or other companies (similar but not direct competitors) to sell excess capacity.
Grow your network for partnership opportunities
- Explore your local and national Ascend network for wholesaling opportunities and connect with potential excess capacity buyers.
- Register as a manufacturer on free online domestic supplier directories such as: ThomasNet, Maker’s Row, MFG, and Kompass. Many of these are looking for manufacturers of critical COVID-19 related supplies and equipment.
PHASE 3
Opening
Enter industries with new demand following COVID-19 long-term
- The health and medical technology sector will likely sustain prolonged demand for high-quality, efficient production of medical tools and equipment.
- Differentiate products and operations with 3D printing technology, which allows for the customization of existing product lines, replacement of hard-to-acquire parts, unique products and more.
Case Studies
Success Stories
mSEED Group
mSEED pivoted their business to provide hand sanitizer in response to the pandemic.
SEE FULL STORYTechnology
Tools to Adapt
3D Printing Technology
The flexibility of 3D equipment has allowed for the creation of personal protection equipment, parts for ventilators, and other tools critical to combating the pandemic.
Internet of Things
Internet of Things (seamless integration of the Internet with other computers and devices) has enabled manufacturers to construct a network of sensors that gather critical data on production speed, quality and efficiency. Following COVID-19, it will become increasingly important to integrate sensor and tracking technology to maintain optimal operations.
Enterprise Resource Planning (ERP) Software
Useful Industry Resources
Find More Ways to Help You
SCORE: Manufacturing Action Plan
SCORE released an action plan tailored for manufacturing businesses.
SEE FULL STORY