The manufacturing industry has experienced tremendous growth over the past few decades, with an increasing number of companies adopting lean methodologies and successfully competing in a global marketplace, according to the National Association of Manufacturers.
Productivity also hasn’t shown any signs of slowing down.
Overall, the hourly output for all workers in the manufacturing sector increased by over 2.5 times since 1987. That spike in growth and productivity has led to some of the era’s greatest manufacturing success stories.
Have a look at how to value a manufacturing business to bring the highest price for your hard-working business investment.
Here’s a look at lessons from these manufacturing success stories and takeaways you can use to add to your success.
Respond to Societal Trends
“Are you allergic to Latex?” is a question just about every medical professional asks patients when treating cuts, abrasions, or performing surgery. In the 1980s, Neil Tillotson and Luc DeBecker invented a replacement that effectively alleviated worries of allergic reactions.
The inventors recognized a market need for safe and efficient gloves that avoided adverse side effects. As the AIDS epidemic gained national headlines, nitrile gloves were primed for mass manufacturing and distribution. The result was a safer way to help critically ill patients without infecting their caregivers and medical team.
Believe in Your Product
Spanx revolutionized the undergarment industry by creating a category all its own. After Sara Blakely cut off the feet of a pair of pantyhose to create a slimming look, she realized she was onto something. Blakely took her life savings of $5,000 and spent two years researching hosiery patents and visiting craft stores to source fabrics for her secret invention.
However, when she began calling manufacturers to produce her line, they all declined to do so. After visiting a manufacturer in person, the manager initially said no, but then changed his mind and called her. His daughters insisted it would be a monumental business venture — and they were right. Today, Spanx is a billion-dollar company.
Master the Art of Efficient Passion
Italian car manufacturer Maserati is no stranger to its market’s passion for sophisticated sports cars. Therefore, the manufacturer decided to release a business sedan that embodied the passion of a sports car, while also meeting the practical day-to-day needs of a business car.
To release its business sedan in time for its 100th anniversary, Maserati relied on digital manufacturing to quickly bring its ideas to market. Specifically, Maserati relied on the SIMATIC IT MES software to streamline the manufacturing process from planning to production monitoring. The result was an efficient, fast, and reliable process that produced the elegant cars the market desired.
Stay Agile and Lean
Family-owned and operated Vitamix enjoys a problem most manufacturers would love to have — demand for their products has soared by more than 50 percent year-over-year for five consecutive years. According to the National Institute of Standards and Technology, Vitamix was experiencing long customer lead times and was unable to scale quickly enough to capitalize on an eager market.
However, after tapping the Partnership for Regional Innovation Services to Manufacturers, the company established a lean steering committee and trained its leaders. Thanks to careful preparation, readiness, and a desire to grow agilely, Vitamix was able to quickly rent a 175,000-square-foot warehouse to accommodate its urgent need for more space.
Time to sell your manufacturing business?
Are you considering selling a manufacturing business but unsure where to begin? Would you like to determine the best method to value your manufacturing business? For more information, please visit my website, Business Valuation.
For more immediate assistance, you are welcome to send an email to Andrew Rogerson or call me at Toll-Free (844) 414-9700.
Further reading: How to plan an exit and sell your manufacturing business?