Manufacturing & Distribution
The face of manufacturing and distribution is changing drastically. Enterprises within this industry must adapt to the new normal – competition from around the globe, labor shortages, and stringent regulations – or see their growth curtailed.
The manufacturing and distribution industry has experienced dramatic shifts in the last 10-15 years. Although this sector remains vital to the U.S. economy, global competition, a difficult regulatory environment, new technologies, and a shortage of qualified labor are just a few of the factors that have impacted its growth and stability.
Manufacturers – food and beverage, chemical and pharmaceutical, textile and apparel, and electronics, among others – feel pressures from a variety of sources. Worldwide competition from countries with lower labor and production costs, rising costs in healthcare, pensions, corporate taxes, and raw materials, and slow economic recovery present particular challenges for manufacturers.
Distribution entities, from family-owned and privately held companies to publicly traded corporations, are being forced to streamline operations and adjust to tougher regulations. Effective supply chain management, labor and employment issues, increased focus on consumer health and safety, and antitrust laws are top challenges for this subsection of the industry.
To stand apart from the competition, both distributors and manufacturers must increase efficiency – mastering internal controls and seeking innovations in technology, production, and supply chain management.
In this low-growth, low-spending environment, diligent business planning is also key. Careful strategizing for growth and expansion, consideration of mergers and acquisitions, and insightful financial modeling help these entities distinguish themselves and gain a competitive advantage.
At HRSS, we enhance our standard audit, tax, and advisory services with internal control evaluation, assessment of labor issues, and providing counsel on the need for further capital. We share proven strategies to improve and reduce costs, streamline productions and operations, lower inventory, and employ effective tax strategies, as well as mergers and acquisitions due diligence.