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Manufacturing is something that lots of smaller and medium-sized businesses overlook entirely as a possibility. After all, if you want to be able to make your own products, you’ll require tools and equipment, endless materials, vehicles, individual licenses- not to mention warehouse space to store everything. It’s easy to be put off when getting established is such a massive task, but is it worth the effort? If you’re wondering exactly do you need to know when it comes to manufacturing and if it’s out of reach for smaller and medium-sized companies like yours, read on.
Do your market research
Thorough market research is so important, manufacturing products costs a lot of money- the last thing you want is to mass produce an item that’s unnecessary. Make sure you’re manufacturing something that people actually want, and always build and test a prototype before sending it into mass production. You should be 100% happy with how it’s going to turn out before investing any kind of time or resources into it.
Getting set up
Whether or not you’re able to manufacture your own products depends on your budget, as well as the kind of items your company wants to make. Take for example complex items such as electronics or robotics which require a lot of technology and specialist workforce, in this case as a smaller business you’d be likely to struggle. But you could easily utilise plastic injection moulding, manufacture items using lathes, sewing machines or other pieces of equipment. Have a think about what you want to manufacture, from abs butterfly valve components to homewares to circuit boards, and then think about how likely you’d be to source the right equipment and staff. Consider any special licenses or other restrictions that might make it difficult too; it will all be dependent on what you do or sell.
The costs
The cost of getting set up in manufacturing can be extremely high. You will need premises for both a factory and warehousing, you will need equipment, materials, staff and more. However, if you’re able to raise the funds, it’s worth knowing that once you’re up and running, you will save more in the long run compared with outsourcing. You could look into taking out loans to cover the startup costs or find an investor, over time you’ll save money but it is a lot to cover upfront.
Health and Safety
There are risks involved in any workplace. Slips, trips, and falls are common and can happen anywhere, but when it comes to manufacturing, there are even more health and safety considerations to bear in mind. With power tools, machines, vehicles, high heat, and chemicals being used, it generally makes for a more dangerous workplace. Make sure you have the correct insurances, and that staff is adequately trained. Follow health and safety rules to the letter to avoid mistakes.