This column is dedicated to the financial issues facing forging businesses. It provides guidance on financial matters to those who may not have a dedicated CFO on staff and additional financial insight to those who do.
An archived series from the Forging Industry Educational and Research Foundation (FIERF), a supporting organization to FIA whose mission is to assist the forging industry through technical education, research & development.
Supply chains and logistics are an integral and important part of a successful manufacturing operation. They have always been so, but with the advent of the COVID-19 virus and its having shut down the world’s economy for a time during a period of global quarantine, supply-chain issues have since taken center stage for consumers and manufacturers alike.
Yesterday I bought a simple, gas-powered Craftsman lawnmower with a Briggs & Stratton engine. It wasn’t very fancy, it wasn’t self-propelled and it didn’t have a lot of “bells and whistles.” It did, however, happen to be exactly what I wanted – a basic workhorse lawnmower to cut grass at my daughter’s rental property.
In prior articles (December 2021 FORGE and February 2022 Industrial Heating), we discussed the reasons behind the importance of understanding margins (price minus cost) for the seller of any product or service. Your Cost Model is the framework for calculating costs.
As an editor in business-to-business media, I have watched for more than 30 years as good-paying manufacturing jobs slowly disappeared from the United States toward foreign countries eager to build up their economic prospects through basic manufacturing and job creation.