Recent figures released by the ONS suggest that the yearly output of UK manufacturing has reached £429.8 billion.
While these figures demonstrate the strength of manufacturing in the UK, the cost of sourcing materials and producing goods still needs to be considered to ensure profitability in manufacturing.
As with all key industries, making savings across various overheads can make a difference when it comes to profit margins.
At Metreel, we help businesses become safer and more productive through our material handling products.
These are just some of the top ideas for how manufacturing costs can be reduced to promote business growth and success.
Streamline Processes
While every manufacturing business may produce different items, the one common denominator is the need for the constant flow of goods in and out of the facility.
How well goods and materials move through a manufacturing plant directly impacts output and therefore profit.
Alongside material shortages, inefficient processes including due to how the facility is managed or operated can also grind operations to a halt. As a result, costs for the business will undoubtedly rise.
To reduce costs, every manufacturing facility can benefit from regularly assessing its processes to avoid wasteful or inefficient practices. By addressing unnecessary costs, manufacturing businesses can make savings by ensuring their capital is being spent in the right way.
Invest In Automation Technology
Processes that are completed manually can often cost more due to various limitations that exist with human labour.
Examples of manual processes include assembly line operations, material handling, packaging, finishing and surface treatments and maintenance tasks.
In terms of material handling, the lifting and repositioning of goods can be made safer and more efficient to complete by investing in material handling products such as workstation cranes. By automating this process, the potential for injuries can be reduced all while increasing the total amount of output.
Reducing Material Costs
Manufacturing isn’t possible without the raw materials which are processed on-site before they are ready to be made into the finished products.
However, material costs are subject to price variations, including sharp increases due to the economic climate.
It’s important to keep an eye on rising costs, including situations which may lead to material shortages. By working closely with suppliers and purchasing large quantities of materials where possible, manufacturers can often make savings within supply chain costs.
Additionally, exploring alternative materials including sustainable or infinitely recyclable materials may offer long-term cost savings within the business.
Discover Industrial Solutions For Manufacturing
Do you own or work on behalf of a manufacturing facility?
Metreel works with manufacturers through the supply of material handling, powerfeed and fall protection equipment. If you are looking to reduce costs in your business by reducing inefficient processes – our team is here to help.
Based in Derbyshire, Metreel works with businesses from across the UK. Take a look at our full product range by downloading our product brochure.
Alternatively, you can also speak to us for some tailored advice by calling 0115 932 7010 or emailing us at [email protected].