Manufacturers have always been in the business of balancing trade-offs: revenue enhancement and cost containment; customization and standardization; competition and collaboration. What's new? The ever increasing complexity in which strategies are decided, plans implemented and decisions made. We can help.

Back to basics: Cost restructuring for the future

In an industry already challenged with consistently covering its cost of capital, the current credit crisis has added pressure to the balance sheets of many paper and packaging companies. The era of available and inexpensive credit for all is over, this much we know. Tapping the capital markets without addressing underlying business issues is no longer an option.

Collectively, the industry lost sight of the fundamentals of lowest cost production as a key driver to a sustainable and profitable enterprise. Growth by acquisition has given some groups strong market positions but left them with parallel structures that needlessly duplicate many functions. Where divestiture was the strategy, companies have been left with cost bases originally built for larger enterprises but are no longer necessary for the leaner organization.

The convergence of these two challenges makes a new look at cost reduction imperative for survival. Companies that have borrowed to merge, acquire, or invest in capital equipment need to deliver the synergies from those deals, and they need to deliver them sooner rather than later. The lending world has changed; it should not be assumed that lenders will tolerate underperformance without corresponding compensation (or marking to market).

The approach must be holistic. Operational performance and balance sheet management cannot be viewed separately. In fact, no part of the company can be spared careful scrutiny. Each can play an important role in reducing costs, preserving cash, adding shareholder value, and contributing to the long-term health of the company.

Winning the war for talent

Talent management is becoming increasingly critical to manufacturers. Leading manufacturers have launched strategic talent initiatives to ensure that talent of all ages is identified, trained, and rewarded for driving growth.

Managing the talent crisis in global manufacturing - Strategies to attract and engage Generation Y

Globalization, the relentless quest for productivity growth and a growing service orientation are driving demand for higher skills in the manufacturing sector. Part of the answer to the industry's talent needs lie with a demographic generally called Generation Y, defined for the purposes of this study as people born between 1982 and 1993 who are entering the workforce for the first time with a primary, secondary, college or graduate education.

Generation Y will constitute a significant proportion of the working-age population in the coming years, but convincing this segment to pursue manufacturing jobs is challenging. Manufacturing no longer possesses a reputation as a leading source of stable, high-reward career opportunities. To succeed in attracting younger workers, the industry needs a model of talent management that will address the unique characteristics of this generation while speaking to the larger workforce as well.

Labourforce can help you with a customised manufacturing human resources solution.