Scaling Up Manufacturing: Choosing Between Growth and Scale

As the warehouse automation industry continues to grow due to labor shortages and the rise of e-commerce, companies face the challenge of meeting demand while driving innovation. To ensure long-term success, it's crucial to make smart decisions about scaling up manufacturing. The question arises: should you focus on growth or scale? Both options offer increased profits and the ability to meet output and innovation demands. Understanding the distinction between growth and scale is essential.

Growth involves adding revenue at a rate similar to adding resources, while scaling means increasing revenue while adding resources at a slower pace. Outsourcing can be the answer for both, providing the support needed to meet demand at scale and facilitating appropriate growth.

Considerations to Keep in Mind:

1. Easy Manufacturability: While innovation is important, product designs must also be manufacturable. Engaging external engineering and manufacturing experts like Highmark Solutions can provide valuable insights into optimizing designs for efficient manufacturing processes and identifying potential areas for automation.

2. Supply Chain Readiness: Ensuring that your supply chain can meet increasing demand is critical. Evaluate your existing material suppliers' capacity and lead times. If they fall short, consider exploring new suppliers or partnering with Highmark Solutions to cover all your needs.

3. Workforce Capacity: Labor shortages and burnout pose challenges to scaling production. Assess your team's capacity and explore options to manage workload or fill knowledge gaps. External partners can provide industry expertise and support in design, manufacturing, and supply chain activities.

4. Facilities and Infrastructure: Expanding facilities may be necessary to accommodate increased production. Consider factors such as construction costs, lead times, and market availability. Alternatively, outsourcing manufacturing to existing facilities can save time and costs associated with facility setup.

Partnering for Success:

Regardless of whether you choose growth or scale, partnering with experienced experts can enhance your journey. A trusted partner should possess industry-specific knowledge, offer end-to-end support, and help you navigate the unique challenges of your industry. At Highmark Solutions, we specialize in bringing complex products to market. With our extensive experience, we can support your goals and overcome obstacles, providing tailored solutions for your growth or scaling needs.