http://blog.interimpartners.com/manufacturing-july-update-%e2%80%93-mixed-messages.html Encouraging debate and discussion within the interim management sector Wed, 01 Feb 2012 18:48:20 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://blog.interimpartners.com/manufacturing-july-update-%e2%80%93-mixed-messages.html/comment-page-1#comment-767 warren beese Thu, 05 Aug 2010 11:06:08 +0000 http://blog.interimpartners.com/?p=432#comment-767 Tom, some excellent points, let me tell you what I've had fed back to me. People I talk to in manufacturing have seen their backlog levels increase over the last two months (sectors do vary though). This, they think, is as much to do with 'refilling the pipeline' (customers running down stocks to lower levels to improve cash flow/asset management during the hard times). But they say there is a definite pick-up in customer activity, especially if they play in the export markets (Germany as an example). The knock-on effect is that some are seeing their overdues increasing as their suppliers, who have also cut inventory and labour, struggle to keep up with their demand. I was also told that a similar shortage is starting to occur in labour (mainly skilled) as activity increases within their businesses. Most manufactures cut very deep (I had three plants of over a hundred people each and we reduced salaried costs by a 3rd in ’08 and ‘09) as the recession bit. Now they are finding in critical areas, they have to recruit. But here’s the issue: these companies don’t want to take on permanent staff because there is still a risk because the recovery is still ‘fragile’. This leads me to believe that the manufactures will need very capable interims to bridge the gap. The landscape has changed appreciably in the last two years and as the growth comes back, companies need flexible professional people as they adjust to the new order. That’s where we come in.... Tom, some excellent points, let me tell you what I’ve had fed back to me.
People I talk to in manufacturing have seen their backlog levels increase over the last two months (sectors do vary though). This, they think, is as much to do with ‘refilling the pipeline’ (customers running down stocks to lower levels to improve cash flow/asset management during the hard times). But they say there is a definite pick-up in customer activity, especially if they play in the export markets (Germany as an example). The knock-on effect is that some are seeing their overdues increasing as their suppliers, who have also cut inventory and labour, struggle to keep up with their demand. I was also told that a similar shortage is starting to occur in labour (mainly skilled) as activity increases within their businesses. Most manufactures cut very deep (I had three plants of over a hundred people each and we reduced salaried costs by a 3rd in ’08 and ‘09) as the recession bit. Now they are finding in critical areas, they have to recruit. But here’s the issue: these companies don’t want to take on permanent staff because there is still a risk because the recovery is still ‘fragile’. This leads me to believe that the manufactures will need very capable interims to bridge the gap. The landscape has changed appreciably in the last two years and as the growth comes back, companies need flexible professional people as they adjust to the new order. That’s where we come in….

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