![]() |
![]() |
![]() |
||||||
| Business Plans | Financing | Business Credit | Personal Credit | Starting a Business |
|
| ||||||
| Industry Resources | Money From Foundations | Order | Clients | Home | About | Contact | ||||||||
|
|
Manufacturing Industry ResourcesManufacturing - Sector Overview Manufacturing - List of Businesses Manufacturing - Resource Directory MANUFACTURING – SECTOR OVERVIEW The first step in determining how to write a business plan at Trident Consultants involves identifying the correct business sector to which our client’s business belongs. The manufacturing sector is a vast industry classification as per the NAICS – North American Industry Classification System. It covers businesses like rice milling, soybean processing, sugar manufacturing, chocolate manufacturing, frozen food manufacturing, poultry processing, seafood canning, soft drink manufacturing, breweries, tobacco manufacturing, textile mills, carpet mills, apparel manufacturing, leather goods manufacturing, wood products manufacturing, paper mills, commercial printing, petroleum refineries, chemical manufacturing, plastics and rubber manufacturing, glass products manufacturing and many others. (A detailed listing of manufacturing businesses has been included at the end of this page.) There are over a 622k larger businesses (with employees) in this industry sector that employ over 13 million people with a total payroll of $600 billion. On average the larger wholesale trade firms have at least 22 employees and the average income nationally for each of these employees is about $43k. In the small business world covering firms with no employees, there are 297k such wholesale trade firms with total gross receipts of $15 billion and the average annual income as reported by each firm of around $50k. A business plan written for any firm engaged in the manufacturing sector must emphasize the tremendous dependence this sector has on consumer spending. While consumer spending in our economy has been fairly steady it is openly acknowledged that manufacturing would indeed slow down substantially if the spending patterns of the US consumer were to change in favor of higher savings rate. Substantial investments in research and development is a major facet of a manufacturing firm and business planning must take into account this major fixed capital cost that businesses have to face to be able to innovate and come up with new and competitive products for the consumer. No business plan on manufacturing would be complete without mention the tremendous increase in the lower cost imports especially from China. The manufacturing sector, more than any other has been, negatively affected by cheap imports from all around the world and many manufacturing plants have shut down or have had their profit margins cut dramatically due to cheap imports from overseas. Lack of enforcement of US patents is another major source of concern when it comes to international competition. Business planning for a firm in the manufacturing sector has to include a strategic plan to move part of the firm’s entire production overseas if need be to be able to survive. Many buyers like Wal-Mart insist that the product costs be lowered every year and sometimes the only way to achieve that is to move production overseas. While this may not be the most palatable of options, it is at least one way for firms to stay alive until better economies of scale are achieved locally, new markets are promoted and overseas labor rates rise. Dependence on a few large customers is a major source for most manufacturing firms – many times firms tend to go after the very large names and then are faced with the dichotomy of having to deal with servicing the needs of one or few large clients who can dictate terms to them. Also the loss of a significant client can be very detrimental to the firm and a sound business plan must address the inherent weakness of such a strategy while recommending that alternative markets be sought out. The two opportunities that manufacturing firms have today with the growth of the internet is the ability to reach their end customers without having to include a middleman like a wholesaler. A strong online presence with the ability to take orders online can be a major source of savings to the clients and every effort must be made in the business planning stage to take advantage of technological innovations in the industry. If you are starting a manufacturing business, or are already established but are looking to grow, secure a partner, venture capital or business loans, we would be happy to help. MANUFACTURING – LIST OF BUSINESSS:
The following is a list of the various businesses that fall under this industry sector: Food Manufacturing Beverage and Tobacco Product Manufacturing Textile Mills Textile Product Mills Apparel Manufacturing Leather and Allied Product Manufacturing Wood Product Manufacturing Paper Manufacturing Printing and Related Support Activities Petroleum and Coal Products Manufacturing Chemical Manufacturing Plastics and Rubber Products Manufacturing Nonmetallic Mineral Product Manufacturing Primary Metal Manufacturing Fabricated Metal Product Manufacturing Machinery Manufacturing Computer and Electronic Product Manufacturing Electrical Equipment, Appliance, and Component Manufacturing Transportation Equipment Manufacturing Furniture and Related Product Manufacturing Miscellaneous Manufacturing
Small Business Owner Resource Center
| |||||||
| Home | About | Contact | Clients | Order | Privacy Policy | Sitemap | ||||||||
|
Copyright 2008 © Trident Consultants, Inc. All Rights reserved. The Trident logo is a registered trademark of Trident Consultants, Inc. and it may not be used, downloaded, copied or distributed in any way. |
||||||||
|
||||||||