It seems like every month there’s another announcement for a new manufacturing company coming to Alabama or an existing one expanding its operation, but have you ever sat back and thought about what that means for your company or organization?
The manufacturing industry has the highest multiplier effect of any sector, so it plays a pivotal role in economic growth as a whole. Not only do American manufacturers contribute trillions of dollars to the U.S. economy, but every dollar spent in manufacturing adds almost $3 of additional money to the economy. According to the Economic Policy Institute in the U.S., each manufacturing job creates three additional jobs in other industries, so even if your business is in another sector, like hospitality or healthcare, you can reap the benefits from a strong local manufacturing presence.
To have a positive impact on the economy, our local manufacturing companies not only need to survive, they need to thrive. We have a dedicated team of accountants and advisors at Warren Averett who understand this and who are focused on understanding the manufacturing industry inside and out so they can ensure our local companies stay strong.
These manufacturing companies not only undergo pressure to manage production and operate efficiently, but they are also expected to compete in an increasingly competitive global market.
Here are a few ways a team of experts helps these companies thrive:
Assist in recruiting employees and retaining talent.
Securing good employees is only half the battle; retaining talent is a challenge that takes proactive measures. Every organization in the industry is unique, so experts take a deep dive to help clients develop retention strategies instead of relying on best practices or ideas from other companies.
Fully explore tax credits and incentives.
A team of accountants and advisors examines each possible credit and incentive available to manufacturing companies, including the employee retention tax credit, Research & Development qualified expenses and more.
Optimizing efficiencies.
Manufacturing companies have a vast array of components that can improve their efficiency and their bottom line. From distribution logistics to inventory management and streamlining business processes, industry experts provide guidance and consultation to ensure companies maximize profitability.
Tailored planning.
Whether a manufacturingcompany is wanting to improve its cash-flow forecasting or budget for a future expansion, an expert can help ensure it has the capital to meet its goals.
The manufacturing industry is crucial to our economy, but we all have a role to play no matter what industry we belong to. The next time there’s an announcement about a new manufacturing company coming to our area, I encourage you to take sometime to identify how your company or organization can help support them. It takes all of us to ensure that our local economy continues to rise with the tide.
