Pricing Challenge: Actual Versus Plan

This post originally appeared on INSIGHT2PROFIT.com. Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.   Now that we’re about halfway through 2019, let’s talk about the plan you set for the year. How have you performed thus far relative to your plan? If your performance hasn’t matched your financial projections for this first part of the year, what happened?  Maybe you’ve looked at your financial reports, and you see that your customer or product mix isn’t what you were expecting, or that you have been impacted by tariffs, and your profitability has suffered because of it. That’s a start – having a rough idea of the shortfall – but you need to get to the root causes. Has a shift in your mix driven down margin rates? Are you falling short of plan due to a volume slowdown, or are pricing shortfalls eroding your revenue growth? How does that vary by market segment or by salesperson? Analyzing the gap down to the customer-SKU level can yield clear, actionable intelligence about your problem. Well-run businesses have a strategy, and the budget is the road map to execute it. Planning at the same level of granularity as your sales allows for a healthier understanding of what’s happening within your business, why, and how to act. By having a detailed budget, you are creating a source of accountability for your team and a path for success for your business. Accurate revenue planning and measurement is tough to do, but it’s one of our specialties. Every engagement includes strategy, a client-specific model, a detailed plan and road map to execute it, and measurement to achieve the set goals. All while leveraging our DRIVE technology platform. To learn more about how your company…read more >

3 Technology Trends Transforming Manufacturing

Today we have a guest post from MAGNET (The Manufacturing and Growth Advocacy Network) organization that has a mission for helping manufacturers grow and compete in Northeast Ohio, especially the 98% of startup to medium-sized manufacturers that drive our economy. MAGNET rolls up its sleeves to provide hands-on support ranging from new product design to operations and brings education and business together to create tomorrow's manufacturers. The widespread adoption of technology is indisputably transforming manufacturing operations. But before manufacturers jump right in and fight for technology implementation and adoption, it’s important to understand how certain techs can work, how they’re used, and what benefits they may reap. MAGNET details three common technology trends that are impacting manufacturing processes: 1. Expansion of the Industrial Internet of Things (IIoT) 2. More Emphasis on Cybersecurity 3. Continued Push for 3-D Printing To read the entire post and download MAGNET's 2019 State of Northeast Ohio Manufacturing Report, click here.    read more >

New Study Finds What You Already Knew

by Chris Ilcin, Account Superintendent As members of the manufacturing community, we all have abundant anecdotal evidence of the Skills Gap. But as people involved in precision and “measure twice, cut once” careers, we also understand that when you measure something, you can work on it. That’s why this new study from Deloitte is so welcome. They have taken a good, long, hard look at the industry in general, and applied solid numbers and reasoning to the looming crisis. Additionally, they have partnered with The Manufacturing Institute to work on filling the gap. For the Executive Summary and links to the complete study, click here.read more >

Manufacturing Day: Open Doors, Open Minds

by Chris Ilcin, Account Superintendent Inspiring the next generation of manufacturers. We were going to do a big wrap-up of all the Manufacturing Day 2018 events our clients, partners and friends hosted, but this video from the National Association of Manufacturers does a better job than we could.     Please make sure you share. And start prepping now for Manufacturing Day 2019!  read more >

An Idea Worth Stealing

by Chris Ilcin, Account Superintendent   Lowbrow Customs is a Cleveland-based maker of custom motorcycles and parts. They’ve made some innovative accessories and amazing builds, garnering a reputation that’s worldwide. But it’s what they’re doing in our hometown of Cleveland that has us stoked.   On their website and YouTube channel, they’ve recently announced a scholarship program through the Tri-C Advanced Technology Training Center (which Sonnhalter is also proud to support). The two $2,500 scholarships will help at-need students pursue careers in manufacturing. The goal? To show people that there’s more to higher education than a four-year degree. That they can find an exciting and rewarding career, and that they can join a long tradition of high-quality, American manufacturing. And that by doing this, as my Grandfather always said, “A rising tide will lift all boats.” We couldn’t agree more.read more >

I Rode My Motorcycle Across the United States to Visit America’s Manufacturers. Here’s What I Learned.

by Chris Ilcin, Account Superintendent As anyone concerned with problem-solving can attest, sometimes a different perspective can make a world of difference. That’s what makes this project from David Bohrer so amazing. A former White House photographer, he set out from Washington to Milwaukee on behalf of National Association of Manufacturers to document the state of manufacturing in advance of Manufacturing Day. What he found was opportunity, innovation and dedication. Read more, and see some great photography in his post.    read more >

7 Key Findings from Plant Engineering’s 2016 Maintenance Study

By Matt Sonnhalter, Vision Architect, Sonnhalter Every year Plant Engineering conducts their Maintenance Study. The objective of this research is to better understand maintenance practices and strategies currently in place in North American manufacturing facilities and the effects of maintenance on productivity and profitability. The 2016 study identified seven important high-level findings impacting the manufacturing industry: Maintenance Strategies – facilities utilize multiple maintenance strategies on the plant floor, with preventive maintenance (76%), “run-to-failure” (61%) and computerized maintenance management system (60%) being the top three Shutdown Schedule – on average, all systems are shutdown three times each year Maintenance Support – 6 in 10 facilities dedicate a significant amount of maintenance support to their rotating equipment Unscheduled Downtime – aging equipment (50%) and operator errors (15%) remain the leading causes Training – more than half of respondents’ maintenance personnel receives training in safety; basic mechanical skills; basic electrical skills; motors, gearboxes, bearings; and lubrication Technologies – 62% of respondents’ facilities use a computerized maintenance management system (CMMS) Outsourcing – the average facility outsources 22% of their maintenance operations, up from 17% in 2015 Diving deeper into the research findings, I was surprised at some of antiquated and simplistic practices still used for maintenance, especially given this age of technology and the Industrial-Internet-of-Things (IIoT). For example the second highest maintenance strategy was Reactive Maintenance also known as “run-to-failure.” And the leading cause for unscheduled downtime is Aging Equipment at 50%, while Lack of Time to Perform Maintenance or Lack of Maintenance make up 25%. And even though 83% of maintenance personnel receive training in safety, only 3 in 5 respondents indicate that their maintenance teams receive basic mechanical and electrical skills. How can we expect these people to maintain equipment if they are not properly trained? And the ultimate technology dichotomy, “clipboards…read more >