As we enter into another recession, it is important to remember that not all businesses will be affected in the same way. Some industries will thrive while others struggle. The demand destruction that takes place during a recession can be very harmful to some businesses, but there are ways to protect your facility and help it survive. In this blog post, we will discuss how factory automation and other strategies can help you get your plant recession-ready!
Demand destruction is a major problem during a recession. When demand for products and services falls, businesses are forced to cut production, which can lead to layoffs and plant closures. To protect your business from demand destruction, it is important to diversify your products and services. This will give you a cushion if demand for one of your products falls. Additionally, you should focus on quality over quantity. By producing high-quality products, you can differentiate yourself from the competition and stay afloat during a recession.
There are very clear ways to create quality products at scale. In mass production, quality is often sacrificed for quantity. This is because manually producing products at a high level of quality is expensive and time-consuming. Factory automation, on the other hand, can help you produce large quantities of high-quality products quickly and efficiently. Automation can also help you reduce your labor costs, which will be important during a recession when demand is low and businesses are cutting expenses.
Another way to get your plant recession-ready is to invest in an apprentice program. During a recession, it can be difficult to find qualified workers. By starting an apprentice program, you can train workers in-house and have a pool of qualified employees to choose from when demand picks back up. Additionally, investing in employee training will show your workforce that you are committed to their development, which can help reduce turnover during tough times.
Remember, besides being overstaffed, having high turn can be a sneaky, costly expense that hurts during a recession.
A recession can be a tough time for businesses, but there are ways to survive and even thrive. By diversifying your products and services, focusing on quality, and investing in factory automation, you can help your business weather the storm.