Why Manufacturers Need Outside Experts to Recover Faster

Why is it often hard for manufacturers to realize they need outside help until it’s too late?

Let’s look at it this way. Let’s say that you are a manufacturer that has experienced a loss in sales. Doesn’t have to be a major loss. Even a 5% loss in sales can lead to concerns. Perhaps, it’s just that you’ve lost your biggest or most reliable customer. The one that reorders consistently every month. 

When there is a loss in sales and income, it is normal for business leaders to be concerned about lowering expenses, increasing lead generation, the potential need for layoffs, or perhaps even concerns of bankruptcy. This mindset often leads manufacturers into a “survival mode” of sorts and it can be very inward facing. There can also be a part of pride that gets in the way of asking for help.

In this internally focused survival mode, many don’t even realize that there are other options such as reaching out to industry experts. 

It is when we realize that having a circle of experts, people we can call when we are facing difficult times, and that asking for help often leads to recovery quickly, that’s when real recovery and growth will happen. 

What are some of the most common blind spots you see when you first start working with a new client?

I won’t say that it is the most common blind spot that I see but, the one that always surprises my client-firms is when I ask them “What is your mission?” and then “What is your purpose?”

Stop here and take a moment to think about what your answers are.

What is your company’s mission?

What is your company’s purpose?

Often, client-firms answer both questions very similarly regarding their company’s mission statement, products and goals. 

Sometimes there is a disconnect. So many are so focused on their products, goals, mission and so forth that they forget the main purpose of being in business is to make a profit to stay in business. 

Once we establish that “being in business to stay in business” is the ultimate goal and purpose, real recovery and growth happens. 

How does bringing in an outside expert accelerate recovery compared to trying to “fix things from the inside”?

Outside experts help accelerate recovery because they bring their expertise to the situation and bring real solutions and enhancements to the process. 

My response to “Trying to fix things from the inside” is “if we already knew what to do to fix the issues, wouldn’t we have already done it?” We don’t know what we don’t know. 

Not only does hiring outside consultants bring expertise to the situation it almost always increases the speed of recovery. 

What happens when internal teams are too close to the problem?

We can’t always see our own mistakes. That is the problem when internal teams are too close to the problem. In addition, if you can’t see your own mistakes, you certainly can’t fix them.

How does trying to “DIY” a recovery strategy usually slow progress or increase risk?

A “DIY” recovery strategy limits you to your own limited expertise, skillset and experiences. 

When facing declines in business, concerned about losing sales, profits and employees along with the potential of losing market share or risking potential bankruptcy, wouldn’t you want to hire the best, most skilled experts in their field?

What’s better than hiring the best experts in their fields? Being able to cost-share the costs of their project implementation with a partner invested in your business’s recovery and growth. That’s the benefit of participating in the TAAF program and working with MATAAC. 

Can you share an example of a manufacturer who was stuck until expert help gave them the breakthrough they needed?

An injection custom molding manufacturer was losing sales, employees and facing negative impacts from foreign trade when it entered the TAAF Program. After receiving approval for their business recovery plan, projects were implemented that included project management, strategic consulting, business development and ERP system projects. 

Through the help of consultants and experts to implement these projects, this  manufacturer increased sales by 110.66%, increased employment by 83.33% and increased operating profits by 243.62%. 

What types of experts do you bring into a typical MATAAC recovery plan?

Each business recovery plan is custom tailored to the unique needs of each individual client-firm. Expert consultants and projects can include the following areas of expertise: marketing, sales, operations, financial management, IT planning, training, new product development, new service development, quality assurance, customer services and software customization. 

Our website has a more extensive list for review. 

How do these experts help across areas like marketing, operations, and technology?

One of the best parts, in my opinion, of the TAAF program is that a struggling manufacturer receives a customized recovery plan specific to their own unique and individual needs focused on growth and competitiveness. 

Areas such as marketing, operations and technology are reviewed and analyzed during the plan’s development and once projects are approved specific consultants are hired to address the needs in these areas. 

Manufacturers then receive expert assistance in targeted areas like marketing, operations, and technology identified as required for recovery.

What’s the benefit of having a team of consultants instead of just one specialty advisor?

Well, for one thing, one specialty advisor only offers one perspective and usually is trying to sell their specialty services. 

What I feel is more important is that as a participant in the TAAF program, a client-firm or U.S. manufacturer receives the benefit of a business recovery plan created by a team focused entirely on the manufacturer’s future success without attempting to sell projects. 

The recovery plan is fully developed with only the manufacturer’s unique needs. Main goals include the ability to obtain global competitiveness, increase sales and operating profits, improve employment and improve market share. 

A team of independent consultants and experts are then selected by the manufacturer to implement the approved projects listed in the recovery plan. 

Benefits to the manufacturer include:

1. A customized firm specific business recovery plan created by an independent team focused exclusively on the needs of the client-firm.
2. Management is the primary decision maker regarding the hiring of consultants. 
3. The client-firm receives the benefits of having a team of experts and consultants based upon projects listed in their recovery plan.
4. Cost-shared project implementation reduces the project costs for the recovering firm.

How MATAAC Serves Mid-Atlantic Manufacturers

For over five decades, MATAAC (MidAtlantic Trade Adjustment Assistance Center) has been helping turnaround manufacturers. Primarily by tackling trade challenges, regain competitiveness, and boost profitability. MATAAC provides solutions to manufacturers located in Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington D.C. MATAAC has been chartered by the Economic Development Administration of the U.S. Department of Commerce with responsibility for the management of Trade Adjustment Assistance for Firms (TAAF) program. The TAAF program is a crucial resource that supports businesses in navigating global market shifts.