IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog article has been provided by Peter Yordanov of PWR- Packaging with Roberts (www.pwrpack.com):
How To Grow Your Steel And Metals Manufacturing Business
The steel and metals manufacturing industry has seen constant demand and changes. Hence, it’s crucial to stay on top of trends to ensure your business’s success. There are many ways to improve your business, including using technology, better capacity planning, and reducing risk.
Here are some tips for growing your business.
Design A Business Plan
If you’re beginning your journey with your business, having a well-crafted business plan can save you time and energy later on and may even be a magnet for angel investors. Should you intend to pursue the capital? There are various factors to consider, such as the legal requirements for your business, the location you’ll be selling your products, your daily tasks, and when you’ll begin earning profits. You need to record your production and staff details on your company’s business plans. You should also respond to questions like:
- What is the process by which your steel products or services are made?
- What is the cost of manufacturing your steel products or services?
- Where to buy the necessary steel and metals manufacturing tools?
- Are there enough pools of candidates for hire in the future?
- Are you using an organization chart?
- Have you got a business strategy?
- Who is the best industry expert to help you execute an exit strategy or sell your business?
Use Automation Robotics Tools to Increase Growth
Simple tasks like moving objects or lifting them don’t require the use of a lot of mental processes. So, employing humans in these jobs can be inefficient because you can direct them to perform different tasks that demand more cognitive abilities. If you’re moving boxes, bottles, bricks, bags, blocks, or blocks, these repetitive must be carried out by pick and place robots.
The robots are usually outfitted with sensors or systems that can lift objects off conveyor belts that are moving. You can employ the robot for different tasks in manufacturing and other industries, such as sorting and stacking, moving, and packing products.
Pick and put robots allow companies to use automated methods to meet the ever-growing needs and efficiency required to accomplish tasks that otherwise require manual labor. It increases speed by ensuring continuous production, security, consistency, and a reasonable ROI. Therefore, as a manufacturer, you must use automation tools to grow your steel and metals manufacturing business.
Take Advantage of Using Modern Technology
New technology can improve your steel and metals manufacturing business. Advanced technologies, like artificial intelligence, the Internet of Things (IoT), and 3-D printing and waterjet cutting are transforming how manufacturing will evolve by reducing production costs speeding up processes, and reducing errors. Because productivity is crucial to the performance of any manufacturing plant, all manufacturers are required to invest substantial amounts in this technology.
Understand Your Market and Competition
If you’re starting a steel and metals manufacturing business, it’s essential to determine the size of the market and the capability of your competition. You also need to determine what the competition is like and how much work you can handle in one month. While you may take on more jobs initially, limit your growth to a few hundred per month. In the long run, you’ll be able to take on more jobs as you grow.
For example, if your industry is competitive, it isn’t easy to compete against the large organizations operating for decades. If you have a solid understanding of your market, you’ll be able to determine better how to increase your business’ capacity. However, it’s good to check your competitors’ capabilities and strengths. After that, you’ll be able to determine your strengths and weaknesses and make an informed decision.
There are other internal factors to grow your steel and metals manufacturing business.
Research Your Market
Besides identifying your target market, you need to understand what sets your steel manufacturing business apart. Do you want to compete with big manufacturers? It is essential to learn about their needs and preferences. Since your business is in the steel and metals industry, you’ll need a quality steel plant and a commitment to excellent customer service. If you do, you’ll be able to take on even the most significant projects.
Identify Your Targeted Customers and Engage Them
Start by identifying the market size and competition in your area. Knowing the targeted customers is vital for gauging your business’s success. If you’re not sure what they need, you can contact them. Ask your clients about their expectations for your products and services. Make sure your customers are happy by contacting them regularly, irrespective of standard customer service requests or issues. Include them in your expansion plan and get their feedback on what you could well. They’ll be able to help you make decisions to grow your business.
Consider a Market Niche
Choosing a location based on the availability of steel and metals will help you find a target market. It’s essential to identify which markets are most competitive in the area. You’ll need to determine the size of your call to maximize your chances of success. Competition is fierce in the steel and metals manufacturing industry, but you can succeed by identifying your market’s size and capabilities. It’s also important to know your clients’ needs.
That will help you get a feel for what they’re looking for.
Final Thoughts
The steel and metals industry is fast-paced and competitive, so you must be able to expand into different materials. You can add stainless, galvanized aluminum, copper, and brass. No one rule says you can’t grow to other metals and master the metallurgy of these new materials.
Finally, speak with industry experts. Your local competitors may have a lot of knowledge, but they may not be as knowledgeable as you are. Get advice and connect with other business owners to grow. If you can connect with the right people and businesses, you’ll be well on your way to success.
If you have questions relating to the content of this article, Peter Yordanov would welcome the opportunity to answer them. Mr. Yardanov can be reached via email at peter@pwrpack.co.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate communities on subjects relevant to the purchase & sale of privately held companies and family owned businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.