It should be no surprise that the American manufacturing industry has a serious threat of competition from workers outside the US. Typically foreign employees work for less in terms of US dollars, usually in poor or unsafe conditions, and sometimes in ways that would be illegal under US labor laws. Yet, those businesses that seek products from these foreign companies are looking mainly because of reduced cost. In order to compete with the lower priced foreign competitor, the American manufacturer must learn to do more with less. They must understand what drives their costs and how to control them. This can mean streamlining processes, more efficient purchasing and inventory control and, when appropriate, outsourcing to various local and qualified service providers. To do this, the manufacturing company must have a full grasp on their cost model and how their daily work impacts cost. They must know what their US competitors, their peer’s cost to revenue ratios are. They must understand what is driving costs too high in comparison to their competitors, both foreign and domestic.
Next Level Planners, LLC can help the US manufacturer in managing their costs by first defining the industry’s benchmark as it applies to their particular business and their revenue base. This is the starting point, knowing where you are at. From there our company will work with management to determine where effective cost reduction can be made without jeopardizing quality, productivity, or employee morale.
Why Choose Next Level Planners, LLC
We offer a professional service which helps new or seasoned business owners realistically assess their businesses, identify attainable goals, and determine the steps necessary to accomplish those goals