We understand the challenges faced by manufacturers and distributors in the current economic climate. We work with both large and small companies, helping them remain competitive in today’s global economy. We provide hands-on Partner level service to business owners so that they can rise above today’s challenges, while proactively planning for the challenges of tomorrow. This includes issues such as production, inventory management, cost controls, as well as the accounting, business consulting and specialized tax issues facing their industry.

Most manufacturers and distributors are very “capital intensive,” with significant investments in their plants and equipment, as well as for inventory on hand. Research and development is also a significant expense area as companies strive to develop new products. Production efficiencies equate to true financial savings by reducing the amount of dollars allocated to house excess inventory.

We work closely with business owners to identify ways to improve efficiencies which in turn improves profitability.

We have observed some of these current trends, opportunities and challenges in manufacturing and distribution:

  • Global competition forces improved logistics and technological innovation to optimize performance
  • High US labor costs have forced many US companies to move production operations overseas to lower cost countries like China
  • Increased demand for improved inventory management and controls
  • Compliance with government regulations
  • Ability to improve profit margins while facing growing labor and material costs
  • Challenges related to additional costs of imported goods due to government tariffs
  • Risk of having a concentration of business with a small number of very large customers, such as Walmart or Home Depot
  • Obtaining financing and complying with debt covenants

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