Article | January 4, 2022
Content marketing for manufacturers has become an essential component of every organization, and the manufacturing industry is no exception. Manufacturers are concentrating more on increasing their presence in both the digital and physical markets. As a result, the content market is seeing a boom as novel techniques are aimed at reaching the end objective of the manufacturing company.
According to PRNewswire, the worldwide content marketing industry is expected to increase by USD 417.85 billion between 2021 and 2025, at a CAGR of over 16%.
“Marketing is no longer about the stuff that you make, but about the stories you tell.”
– Seth Godin
Why Is Content Marketing Critical to Your Business's Success?
Helps in the formation of your brand's identity
Enables you to take advantage of organic search results
Performance is easy to assess
Produces leads and attracts ideal buyers
It balances the playing field, resulting in a higher ROI
It enables you to benefit from social shares
It entices visitors to return to your website on a regular basis
Manufacturing Content Marketing Strategies That Work
Recognize the Buyer's Pain Points
Writing amazing content requires knowing your target audience. Knowing your ideal customers helps you generate content that is relevant to them. When your potential buyer visits your website and finds content that answers his or her inquiries, you've already removed one hurdle for your sales staff.
How does your sales team define a good prospect?
Who are they?
What do they do?
Why are they visiting your business?
What is their industry knowledge?
The answers to all such questions influence what and how you write. Once you start recognizing your buyers, you can get the prospect and confidence in your organization to address your buyer’s difficulties.
Do Research on Keywords
Everyone appears to believe that skipping keyword research is acceptable. However, this is not the case. If you want to focus on marketing activities that yield big returns, you need a best manufacturer content marketing strategy backed by solid SEO.
Keyword research is the first step. Use one of the numerous internet keyword research tools to find terms with high search traffic, low competition, and relevance to your manufacturing company's activity. The better your keyword research, the better your content approach.
Create and Schedule Consistently Excellent Content
Writing outstanding content is by far the greatest strategy to increase your manufacturing company's SERP rank.
Hire a good content writer or content strategist who can combine your technical expertise, keywords, and purpose into a meaningful blog, case study, or content offer that gets results. Your material must be good to rank well.
Irregular content, like scattered production, always spells disaster. Having a defined timetable that your audience understands is essential to successful content marketing. Whether you produce material weekly, monthly, or quarterly, a timetable ensures that content is consistently released and updated.
Make Your Content More Visible
Once your content is ready, make your content visible to your target audience. Get your content marketing for manufacturing plan going to promote it in every way.
You're in a tough spot when it comes to content marketing for manufacturers. To stay ahead of the competition, you must constantly monitor the performance of your materials.
Keep an eye on everything you create and promote. Analyze which content form is performing well. Is it a blog? A time-lapse video? Or infographics? Identify your best-performing content so you can develop more of it.
Also focus on the content that doesn't perform well. Consider why that content didn't work for your audience. Is it too hard to rank that post? Is there a better platform or medium for the content? All of these queries must be answered to establish a strong content strategy for your company.
Optimize Your Content Marketing
The lack of industry-specific content marketing tactics is a major challenge for manufacturers. Many businesses use a generic strategy that ignores their particular customer connections, making different types of content marketing for manufacturers ineffective.
As the manufacturing business is a specialized business in any particular area, they also need specific content marketing strategies. Hence, focus on building a unique content marketing strategy that would help you optimize your business reach to your target audience.
General Electric Is Taking the Lead on Social Media
GE has come a long way from its 1892 beginnings. While it has retained basic product streams such as lighting, transportation, and power transmission, the goods themselves have developed dramatically. Social media marketing has become increasingly important as new technology transforms the corporate scene.
GE's Instagram Presence
GE's Instagram feed is an excellent illustration of widespread appeal. GE always shares attractive photographs with full explanations. It recognizes the power of pictures and captures common scenes in fascinating ways.
Utilizing cutting-edge content marketing methods for manufacturing businesses is critical for increasing your business's visibility and reach with your target audience. Ascertain that you select the appropriate techniques to advance your digital and physical presence in the industry. Discover the most effective plan for manufacturing content marketing and change your present marketing methods into more refined and up-to-date ones.
What are the best ways to market a manufacturing company?
The best approaches to advertising any manufacturing business are to concentrate on improving content, email marketing, SEO, press releases, and event sponsorship.
Is marketing vital for manufacturers?
Yes, since marketing opens up a whole new world for manufacturers, and a strong brand helps any business stand out from the competition.
Article | December 21, 2021
When it comes to developing a budget for the following financial year of your manufacturing business, many operations managers start with direct labor and material expenditures. But, what about manufacturing overhead costs?
Manufacturing overhead is any expense not directly tied to a factory's production. Therefore, the indirect costs in manufacturing overhead can also be called factory overhead or production overhead.
Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower-cost goods and services, and causes economic expansion that reduces unemployment and increases productivity and job creation.
– Larry Elder
So, this article focuses on some highly effective overhead cost reduction methods that would help you build a healthy budget for the following year.
Manufacturing Overhead Costs: What Is Included?
Everything or everyone within the factory that isn't actively producing items should be considered overhead.
The following are some of the variables that are considered overhead costs:
Depreciation of equipment and productionfacilities
Taxes, insurance, and utilities
Supervisors, maintenance, quality control, and other on-site personnel who aren't producing signs
Indirect supply from light bulbs to toilet paper is also included in the overhead cost.
Manufacturing Overhead Costs: What Is Excluded?
Everything or everyone within or outside the factory that is actively producing items should be excluded from the overhead costs.
Factory overhead does not include the following:
Employee costs for those making the goods daily
External administrative overhead, such as a satellite office or human resources
Costs associated with C-suite employees
Expenses associated with sales and marketing - include pay, travel, and advertising
How to Calculate Overhead Costs in Manufacturing
To know the manufacturing overhead requires calculating the manufacturing overhead rate. The formula to calculate the manufacturing overhead rate i.e. MOR is basic yet vital.
To begin, determine your overall manufacturing overhead expenses. Then, add up all the monthly indirect expenditures that keep manufacturing running smoothly.
Then you can calculate the Manufacturing Overhead Rate (MOR). This statistic shows you your monthly overhead costs as a percentage.
To find this value, divide Total Manufacturing Overhead Cost (TMOC) by Total Monthly Sales (TMS) and multiply it by 100. The final formula will be:
Assume your manufacturing overhead expensesare $50,000 and your monthly sales are $300,000. You get.167 when you divide $50,000 by $300,000. Then increase that by 100 to get your monthly overhead rate of 16.7%.
This means your monthly overhead expenditures will be 16.7% of your monthly income. Being able to forecast and develop better solutions to decrease production overhead.
Five Ways to Reduce Manufacturing Overhead Costs
A variety of strategies may be used by manufacturing organizations to reduce their overhead costs. Here is a summary of some of the most important methods for reducing your manufacturing overhead costs.
Value Stream Mapping – A Production Plant Process Layout
A value stream map depicts the entire manufacturing process of your plant. Everything from raw material purchase through client delivery is detailed here. The value stream map provides you with a complete picture of the profit-making process. This overhead cost-cuttingmethod is listed first for a reason because every effort to reduce manufacturing overhead costsstarts with a value stream map.
Lean manufacturingis also one of the techniques of eliminating unnecessary time, staff, and work that is not necessary for profit and has gained undue favor in the manufacturing process. You must first create a value stream map of the whole manufacturing process for this technique to work. Once the lean manufacturing precept is established, the following strategies for decreasingmanufacturing overhead expenses can be examined.
Do Not Forget Your Back Office Management
Before focusing on factory floor cost reduction techniques, remember that your back offices, where payment processing and customer contacts occur, may also be simplified and increase profitability. Fortunately, automation can achieve this profitability at a cheap cost.
Manufacturers increasingly use robotic process automation (RPA) to sell directly to customers rather than rely on complex supply networks. This automation eliminates costly human mistakes in data input and payment processing by automatically filling forms with consumer data. Moreover, the time saved from manual data input (and rectifying inevitable human errors) equates to decreased labor expenses and downtime.
Automating Your Manufacturing Plant
For a long time, manufacturers saw factory automation as a game-changer. As a result, several plant owners make radical changes in their operations using cutting-edge technologydespite knowing it realistically. Over-investing in technologies unfamiliar to present industrial personnel might be deemed a technology blunder. Investing in new technology that doesn't generate value or is too hard for current staff to use might be a mistake.
It's usually best to start small when implementing newtechnology in manufacturing. Using collaborative robots in production is one way to get started with automation. They are inexpensive, need little software and hardware, and may help employees with mundane, repeated chores that gobble up bandwidth. It is a low-cost entry point into automation that saves labor expenses and opens the door for further automation investments when opportunities are available.
Reuse Other Factory Equipment and Supplies
Check with other factories to see if they have any unused equipment or supplies that may be "redeployed" to your manufacturing plant. Redeployment would save you time and money by eliminating the need to look for and install new equipment while lowering your overhead costs.
Outsourcing a fully equipped factory, equipment, or even staff can also assist in lowering overhead costssince you will only pay for what you utilize. As such, it is a viable method to incorporate into your production process.
Employ an In-house Maintenance Expert
An in-house repair technician can service your equipment for routine inspections, preventive maintenance, and minor repairs. This hiring decision might save money on unforeseen repair expenses or work fees for an outside repair provider. Having someone on-site who can do emergency repairs may save you money if your equipment breaks after business hours.
Manufacturing overhead costis an essential aspect of every manufacturing company's budget to consider. Smart manufacturingis intended to be productive, efficient, and cost-effective while effectively managing production expenditures. Calculating the manufacturing overheadcan provide you with a better understanding of your company's costs and how to minimize them. Depending on the conditions or geographical needs, each manufacturing plant's overhead expensesmay vary. As a result, identify your production overhead costsand concentrate on reducing and improving them.
What are manufacturing overheads?
Manufacturing overhead cost is a sum of all indirect expenses incurred during production. Manufacturing overhead expenses usually include depreciation of equipment, employee salaries, and power utilized to run the equipment.
What is a decent overhead percentage?
When a business is functioning successfully, an overhead ratio of less than 35 % is considered favorable.
How can I calculate the cost of manufacturing per unit?
The overall manufacturing cost per unit is determined by dividing the total production expenses by the total number of units produced for a particular time.
Article | December 10, 2021
The benefits of contract manufacturing are triggering manufacturers to utilize it as a strategy to speed up production and increase revenue. According to BCC Research, the worldwide contract manufacturing industry should increase from $2.0 trillion in 2018 to $2.7 trillion in 2023, a 6.7% CAGR.
Given the growing demand, contract manufacturing has a long way to go in innovating new solutions for manufacturers.
As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity.
– Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca
Let us look at the benefits and concept of contract manufacturing, often known as manufacturing partners in some circles.
Contract Manufacturing: Concept and Benefits
Contract manufacturing is a business model in which a company agreeswith a contract manufacturer to make components or finished goods based on the hiring company's design. In short, it is a business model in which one company hires another company to manufacture components or goods for them or their products.
The following are some of the primary advantages of contract manufacturing that attract manufacturers to adopt this concept and find a trusted supplier to manufacture any product or part of their product without much difficulty.
Cost Efficiency: In contract manufacturing, companies do not have to pay for the facility, equipment, or labor needed.
Resource Allocations: The money and resources saved through contract manufacturing can be redirected towards other company operations.
Faster Lead Times: Hiring a contract manufacturer reduces manufacturing time. This improves market speed, delivery time, and customer service.
Quality Control: Contract manufacturers are likely to have their own quality control processes in place, which allow them to spot counterfeit or damaged products early on.
Advanced Skill Sets: Companies can benefit from the skills they may not possess, but the contract manufacturer does.
Contract Manufacturing Examples
Here are some examples of contract manufacturing companies that offer manufacturing services to other businesses and work on full-service outside manufacturing projects.
Example 1: Kimball Electronics Group
Kimball Electronics Group provides a comprehensive range of electronics manufacturing services, including engineering, prototyping, testing, electronic data interchange (EDI), new product introduction, and repair depot services. Soldering, assembly, reflow, de-paneling, flux application, inspection, screen printing, testing, and rework are all processes used in their manufacturing.
Example 2: Scapa Healthcare
Scapa Healthcare, headquartered in Knoxville, Tennessee, provides contract manufacturing services for medical and cosmetic products. Their portfolio of products includes sunscreen, silicone medical adhesives, and innovative materials. Additionally, the organization provides development, packaging, and logistics services.
Things to Consider While Selecting a Contract Manufacturing (CM) Partner
You need to know how to identify the ideal contract manufacturer for your business to accelerate production and produce high-quality items. Below, we've listed some of the most important things to keep in mind while looking for an outsourced manufacturing partner for your company.
Understanding a contract manufacturer's (CM) capabilities in terms of logistics and fulfillment is critical. Is your potential CM able to meet shifting product demands? How to use the CM's services? You may need one or more services from CM for your product, so always examine their capabilities or develop a list of their services and see which ones are valuable for you.
Knowledge or Prerequisite
A qualified, experienced, subject matter expert CM always correctly understands the requirements and delivers the services as per expectations and within the time frame specified in your production schedule. Always inquire about their qualifications or certificates in the places where your product will be manufactured.
Any contract manufacturing plan must have an agreement or compliance clause. Always inquire about the compliance procedure and thoroughly understand the terms and claws to avoid future issues.
Verify your possible contract manufacturer's personnel count. Is it easy to talk to them? Is labor skilled enough to meet the product's goals? It is critical for large-scale production and production, requiring swift responses. Any work force shortage might cause production delays.
Gear & Expertise
Check for machines and equipment as well as human labor in your possible CM. Many CM lease equipment to complete a project. So always check how the CM will organize the essential equipment for your project. Expertise in using the equipment is also necessary. Verify which machines were used and whether or not professionals were involved.
The CM's location is the main factor to check. Because the CM may have numerous plants, knowing which plant is assigned to your product is essential to knowing every aspect of its production. Also, the assembly location must allow you to visit and inspect the manufacturing between cycles.
Finding a reliable contract manufacturer with solid financial backing and market roots is essential to avoid market scams. However, you must also analyze and solve risk factors like equipment failure, supplier capacity, and unreasonable expectations.
Selection Myths of Contract Manufacturing Partner
Once you've produced a list of shortlisted contract manufacturing partners who meet all of the criteria described in the preceding heading, you can proceed by following the steps below to select the best contract manufacturing partner.
Look for Who is Willing to Invest in Your Business
Incorrect. The objective is to find a vendor prepared to manufacture at a loss. A contract manufacturer's strength is that they can stay competitive and make a profit for both parties.
Focus on Tier 1 CM Partners from the Market
This one is indeed not acceptable. Tier 1 is a financial phrase used to separate large corporations from smaller ones. You want a contract manufacturer who understands your business and your needs. Don't worry about the manufacturing partner's size.
Go Ahead with the One Who Offers the Best Services at the Lowest Price
Trying to get the cheapest quote isn't always the best idea. You should get a quote from your contract manufacturing partner, but the quote may not always reveal the complete story. Cost per unit frequently captures approximately 75% of total supply chain cost. Some contract manufacturers charge the OEM the remaining 25%. Consider the complete picture while selecting a CM partner.
Manufacturers use contract manufacturing to meet their commercial goals. Therefore, contract manufacturing is a win-win situation for both industrialists and contract manufacturers. Finding the proper contract manufacturing partner for your company is not straightforward, but our brief guide can help you identify the right manufacturing partner.
What makes a good contract manufacturer?
The most significant contract manufacturing firms are more than just supply chain partners. They recognize and treat your items as if they were their own, are meticulous in their operations, and are concerned with quality and capital.
What differentiates contract manufacturing from outsourcing?
A contract is a legally binding arrangement. It involves two or more parties. For example, outsourcing is outsourcing some tasks to an outside organization under a contract agreed upon by both parties.
What's the difference between contract manufacturing and licensing?
Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises.
"name": "What makes a good contract manufacturer?",
"text": "The most significant contract manufacturing firms are more than just supply chain partners. They recognize and treat your items as if they were their own, are meticulous in their operations, and are concerned with quality and capital."
"name": "What differentiates contract manufacturing from outsourcing?",
"text": "A contract is a legally binding arrangement. It involves two or more parties. For example, outsourcing is outsourcing some tasks to an outside organization under a contract agreed upon by both parties."
"name": "What's the difference between contract manufacturing and licensing?",
"text": "Contract manufacturing only outsources production phases, while licensing is far more complex. In return for fees, a corporation sells the right to utilize its intellectual property to another company. Licenses are like franchises."
Article | July 13, 2021
The start of the new year is a great time to critically take a look at your processes and see how you can improve. Here at FANUC, we have identified four key strategies manufacturers can use to boost their efficiency!
Automation can increase production and efficiency no matter the type or complexity of the manufactured products. With space at a premium in most production facilities, many job shops look for machine tending robots that are easy to integrate and have a small footprint. FANUC's robots and software make it easy to connect the equipment and improve throughput as well as overall equipment effectiveness. Quick and Simple Startup of Robotization (QSSR) allows up to four machine tools to be connected with a robot using just one Ethernet cable.
Use the Latest and Greatest Machining Practices and Technology
Many manufacturers leave performance on the table due to outdated processes and programming. Are you getting the most out of your machining? Now’s the time to look at the advantages in new CNC technology. Because new controls have greater processing speed and can implement advanced algorithms, they can do a lot more for your operations. Moreover, the interfaces have become simpler and more intuitive, so they are easier to use than ever before.
Digitize Your Process
New digital tools are breathing innovation and life into increasingly more areas of manufacturing, including the application of digital twins in the machining industry. Digital twins provide virtualization of the machine, control and manufacturing process. Digitalizing traditional manufacturing processes have the potential to make operations more efficient by proving out production processes in the virtual world. That means less waste, more efficiency and a more equipped workforce.
Upgrade Your Shop with a CNC Retrofit
Do you have legacy equipment? Running older machinery can have hidden costs, such as taking the time to source and find older replacement controls leading to significantly longer total downtime and production losses. However, scrapping old equipment and starting new, might be too expensive, especially when factoring in tooling, fixturing, rigging and foundation. Plus, new machines may require more training for staff. A CNC retrofit, with new FANUC CNCs, industrial PCs, servos and cabling, can speed up processing and reduce cycle time by as much as 50 percent.