Page 39 - MetalForming August 2019

Driving Improvements
and Profitability
to a Metal Former’s Bottom Line
To remain competitive during these challenging times requires a
strong strategy for aligning three key areas: operations,
management, and sales and
marketing.
BY LAURIE HARBOUR
The U.S. manufacturing industry invest more in 2019 than they did in their time addressing day-to-day chal-
currently faces great uncertainty,
with tariffs, trade negotiations, the skills gap and economic instability contributing to an increasingly chal- lenging environment for metal formers and fabricators.
That said, in 2018 the metal forming industry saw significant growth. A recent annual survey of stampers con- ducted by Harbour Results, Inc. (HRI) reports that the industry experienced revenue growth of more than 8 percent, with more than 74 percent of survey respondents indicating revenue increas- es for the year. While the first half of 2019 looks slower than 2018, survey results signal an overall uptick in 2019 for stampers, with capacity forecast to reach more than 72 percent.
Additionally, stampers expect to
Laurie Harbour is president and CEO, Harbour Results, Inc., Southfield, MI; 248/552-8400, www.harbourresults.com
2018. Specifically they are projected to increase machine-related capital expen- ditures. This investment in updated equipment and advanced software is critical for helping shops stay compet- itive through improved speed and effi- ciency. Finally, stamping throughput—a company’s total revenue minus out- sourcing and material spend divided by the full-time equivalent of employees —continues trending upward as it has since 2011. In fact, stamping’s through- put leads other industries, due in part to the metal forming industry’s contin- ued focus on efficiency improvements.
Improvement Potential: Operations, Marketing and More HRI data show three areas with the
greatest potential for improvement for stampers: operations, management, and sales and marketing. A strong strat- egy involves aligning these areas.
Yet, when leaders spend much of
lenges, developing long-term strategies and a solid business plan for long-term success often are overlooked. When this happens, four common challenges can derail a business:
• Lack of direction. When an organ- ization lacks a vision of what it wants to be, everyone does what they believe is best.
• Competing goals. This results when different communities within the organization disagree about vision and strategy.
• Disconnected leadership. When leadership fails to communicate effec- tively its vision and strategy throughout the organization, employee buy-in does not occur and the vision and strategy does not take hold.
• Wrong goals. When an organization unites in a direction counter to its vision and strategy, wrong goals and objectives are reasons why.
To identify a sound strategy, leader-
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