Signs it’s time to expand your manufacturing operation


When your facility is consistently running at full capacity but orders keep pouring in, you may be seeing the first of many signs that it’s time to expand your manufacturing operations. Look for other clues that suggest it’s time to expand your facilities.

Customers keep asking for more

When you’ve built a strong pool of repeat customers who stay loyal to you, and your cost of acquiring new customers has fallen below the long-term value of retaining those you have, you’re ready for the big break. expansion. But the real sign to look for is if your customers are constantly asking for something that you currently can’t deliver. They want to buy from you, but you don’t seem to meet their needs. Listen to your customers; they can help guide the direction of your expansion.

You are overcrowded and cannot accommodate all the workers you need

If your floor space is full and your current team is cramped, you need to expand your facility. If you’ve added workers to meet increased demand, but your current space can’t adequately accommodate them with restrooms, change rooms, or break rooms, you should consider looking for a larger space.

You make a comfortable profit

Your cash flow is good and your operations are profitable. This suggests that you could increase your profits by expanding your operations. Expanding your facilities could also increase your profits.

Your industry is growing

If the industry you are in is growing fast, and especially if there are a limited number of players to meet the demand, you may be in a good position to expand. If your industry is growing, it’s likely to change as well. Expansion could be your way to stay ahead of industry innovations and be ready to take advantage of them.

If you decide it’s time to expand by adding facilities, site selection becomes a critical factor in the success of your growth effort. You may find that your best bet is to expand where you are, or you may find that a brand new location will provide the best opportunities for successful expansion. Either way, you should congratulate yourself and your team for making your business successful enough to recognize that it’s time to expand your manufacturing operations beyond your current capacity.

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