5 manufacturing focus areas to boost financial health

Acquiring and retaining workers is a major challenge right now in manufacturing. Downtime caused by personnel problems can severely limit production hours, which can be expensive.

With digital transformation and intelligent technology investments, manufacturing companies can limit the talent strain in their organization starting with identifying major sources of operational inefficiency, such as excessive overtime or process bottlenecks. 

Increasing costs across the board – and the impact of that trend on margins – have made customer price adjustments a necessity. But even as inflation slows down from recent highs, it’s important to maintain pricing and avoid givebacks. 

Price adjustments should be conducted thoughtfully and be informed by customer and stock-keeping unit segmentation. Manufacturing companies need to implement price increases in ways that maximize margin impact and minimize revenue flight risks. 

As companies claim tax exemptions, they should be aware: In the case of a state-conducted audit of exemptions, the burden of proof is on the taxpayer. The statute of limitations on exemptions for most states is three to four years, with the notable exception of Missouri, which is 10 years.

Moreover, manufacturing companies need to have a clear case for exemptions they’ve claimed – and sufficient documentation to support the exemptions. This thorough preparation can help them save a great deal of time, frustration, and expense down the road.