“The thing that keeps me up at night is ensuring we’re creating new opportunities that drive the business. That requires making the right decisions day in and day out on many different fronts,” said Todd Heeg, President of Northern Lights Food Processing.
As a global manufacturer of upcycled ingredients for food, beverages, nutraceuticals, personal care, and pet nutrition, maintaining high-quality standards is crucial, including passing FDA audits and customer inspections. It’s no wonder Heeg loses sleep.
Brent DuBois, President and owner of Logistics Recycling Inc., echoes Heeg’s sentiments regarding the stress of the industry.
“Increased rates are one of the things that keep me up,” DuBois said. “We’ve invested heavily in expansion, which means we’ve acquired a lot of real estate at historically low interest rates, and now they’re all coming due at significantly higher rates.”
Industry Challenges
Manufacturing business owners are continuously adapting their financial strategies for growth during volatile times.
“We’ve moved our entire fleet of trailers. We’ve decided that’s not the best way for us to deploy our resources anymore,” DuBois said.
Heeg expressed similar concerns, stating, “We’re dealing with high inflationary times, where high interest rates and pressure on capital are affecting the purchasing power of new machinery, new employees, and new infrastructure.”
Beyond financial concerns, there’s growing uncertainty regarding traditional economic waves.
DuBois said, “Historically, I’ve watched trends like the price of cardboard and trucking as leading economic indicators. Those two are no longer operating the way they have in the past.”
Heeg also addressed the challenge of retaining employees during labor shortages and keeping them safe: “Our industry requires lots of heavy-duty equipment and moving parts. It can be challenging and my job as a leader is to make sure that we’re finding the right people and retaining them.”
This unpredicted change is causing leaders to pivot their traditional plans of action or risk business failure.
Practical Strategies for Manufacturing Companies
Manufacturing leaders facing similar challenges should focus on:
1. Embracing adaptability: Change isn’t always bad. Be open to restructuring your business model and approach to success.
2. Prioritizing employee retention: Your employees are your number one asset; listen to their concerns and find ways to retain them.
3. Monitoring market movement: Stay up-to-date on significant changes that could impact your business, and strategize how to pivot accordingly.
4. Leveraging a trusted advisor: Consult with industry leaders with hands-on experience to provide you with valuable insight for growth.
“By focusing on innovation, quality, and sustainability, we’ve turned challenges into opportunities for growth,” said Heeg. “I’m so proud to have Michael Matuszak and the KerberRose team at my side to help guide these decisions.”
“Adaptability has been key to our success in these uncertain times,” DuBois added. “KerberRose has been an invaluable resource. I’m able to call Katie Gannon with my ideas and potential solutions, and she provides insight into the financial analysis of our business and whether a decision will benefit us or not.”
For manufacturers losing sleep over similar concerns, consult with a Trusted Advisor who can help you navigate industry challenges and provide solutions for your unique business model. Learn more at kerberrose.com/mfg-contact.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Insight Publications, a division of Woodward Communications, Inc.
