The one thing every manufacturer can expect to happen in their business is change. Some changes are positive and exciting: new hires, equipment upgrades, advancements in technology, and so on. But other developments can prove to be more unpredictable.
Many shop owners drive themselves crazy trying to eliminate uncertainty altogether, but anyone who has attempted that knows it simply isn’t possible. Instead, the better strategy is to recognize that volatility will occur and build a business that’s prepared to respond.
Volatility Is a Challenge You Cannot Ignore
Volatility appears in many forms:
- Labor shortages
- Material delays
- Equipment downtime
- Fluctuating customer demand
- Rising operational costs
- Energy price changes
- Procurement challenges
- Administrative bottlenecks
- Regulatory updates
These sources of volatility have one thing in common: they cost your business time and money. And the longer instability goes unmanaged, the more expensive and time-consuming it becomes.
Volatility Isn’t Just on the Shop Floor
Naturally, when thinking about unexpected issues that come up in manufacturing, your mind might jump straight to thinking about production. But instability isn’t limited to machining and fabricating operations.
It can also emerge as:
- Office bottlenecks: Inefficient administrative processes and inconsistent communication can create slowdowns.
- Procurement challenges: Supplier issues and fluctuating material costs can quickly disrupt schedules.
- Workforce issues: Unexpected absences, retirements, and hiring challenges can leave critical gaps throughout an organization.
Every department, not just the production team, contributes to the overall performance of each project. If volatility exists anywhere in your business, it can cause a ripple effect that affects everything else.
NTMA’s Advice: Build Systems That Absorb Change
Trying to eliminate volatility altogether isn’t realistic. Instead, manufacturing leaders should focus on creating systems that make their business more adaptable.
Cross-Train Team Members
Cross-training creates flexibility when a crucial member of your organization is absent. Rather than depending on that sole individual for critical tasks, provide the training so multiple employees can step in when needed.
Improve Operational Flexibility
Rigid schedules often fall apart when unexpected circumstances arise. Instead, create processes that allow for adjustments to prevent one small disruption from becoming a much larger problem.
Continuously Evaluate Risk
The sources of volatility are constantly changing. Regularly reviewing your operation allows you to identify weak points before they become costly issues.
Don’t Go It Alone! Tap Into Your Manufacturing Network
One of the greatest advantages of being part of the NTMA community is having access to manufacturers who have likely faced the same challenges you’re experiencing today. Odds are, another member has experienced the same supply chain disruptions you’re encountering or has successfully navigated a process improvement you’ve been contemplating.
Lean into your most valuable resource, your peer network, by attending local chapter meetings and national conferences or by interacting with our online community, NTMA Connect. Sometimes the fastest and most strategic solution is to learn from someone who’s already solved the problem.
Don’t Overlook Our Industry Partners
One area of volatility that continues to impact manufacturers is energy. Unlike many operating expenses, energy prices can fluctuate significantly over time, increasing uncertainty and making budgeting a greater challenge.
While manufacturers can’t control energy markets, they can take steps to better manage their exposure. NTMA’s partnership with Environ can help members develop more predictable and successful energy purchasing strategies.
Managing volatility sometimes means finding the right partner, not trying to solve every problem internally. Check out our full list of industry partners, companies that can better equip you to face the uncertainties that come your way.
The Most Resilient Manufacturers Anticipate Change
By creating systems that absorb change and leaning on the resources available through the NTMA community, manufacturers can prepare for uncertainty before it impacts their business. Because while volatility may be unavoidable, its impact doesn’t have to be.
Looking to join a community of individuals who have been in your shoes? Find out more about becoming a member of NTMA!
