Guide to Growing a Manufacturing Business

1. Low-cost, low-complexity manufacturing is moving offshore. Products with high complexity and intellectual property content still command a high enough price to be manufactured profitably in the United States.
2. Increasingly, manufacturers can't compete on price. Their advantage comes from solving customers' problems.
3. Technology is moving so quickly that you can plan on your products being obsolete very soon after they hit the market. Have a product-development process in place so that new products are rolling out quickly.

Tips & Tactics
Helpful advice for making the most of this Guide

• It's dangerous to rely on one or two major customers for most of your business, particularly if they are public companies whose fortunes can change quickly.
• Metals producers have found new customers in the energy market because metal tubing is being used to tap idle oil and gas wells. Keep an eye out for new applications for existing products.
• Chances are, your products will be sold overseas. In terms of product liability, materials compliance, etc., go with the most stringent global standard. That way, you can respond quickly to new market opportunities without reengineering your products.

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