A conversation with our Manufacturing & Distribution Industry Leader
The Manufacturing & Distribution (M&D) industry is undergoing rapid transformation driven by technological advancements, an evolving workforce, and global market dynamics. Efficiency is more critical than ever, as companies strive to meet the demands of a competitive landscape while optimizing resources and maintaining profitability.
For a deeper look into what is currently going on in the M&D industry and how companies can improve efficiency, we sat down with John McCurdy, our M&D Industry Leader, for a discussion on why he dedicated his career to the M&D industry as well as key considerations for M&D businesses who are looking to run more efficiently given the current challenges facing them.
Meet Our Manufacturing & Distribution Industry Leader
As our M&D Industry Leader, John is responsible for business development, client/project acquisition, geographic expansion activities, and determining how and where each of their industry clients is best serviced within our M&D Industry.
John joined the firm over 20 years ago after serving as the controller for two private companies in the metal finishing industry. After spending his entire career servicing M&D companies, both on the manufacturing side and business side, John is well-versed in what it takes to help these businesses thrive.
Why the M&D Industry?
John’s journey in the M&D industry began right out of college when he accepted a part-time position at a metal finishing company, where they manufactured plating chemicals and equipment. This early exposure provided him with an understanding of the M&D industry at its very core and fueled his passion for the industry, leading him to pursue an MBA and ultimately join TBG.
The M&D Industry Landscape
The M&D industry is facing a range of challenges and opportunities in today’s market. Many M&D businesses are experiencing declining revenues, exacerbated by a shortage of skilled labor and talent. Compounding these challenges are high interest rates and tax policy uncertainty, creating a complex operating environment for M&D businesses.
Considerations for Improving Efficiency in M&D Organizations
To improve efficiency, M&D organizations must focus on several key considerations:
- Flexibility: The ability to quickly adjust production levels in response to changing demand is crucial. This requires agile processes and systems that can scale up or down as needed.
- Supply Chain Management: With ongoing supply chain disruptions, M&D businesses must be able to adapt to changing conditions and manage their supply chains effectively. “Many businesses ordered equipment to meet rising demand, but it arrived 6-18 months later, after demand had dropped, leaving them with excess equipment to manage,” shared John.
- Automation: Automation can significantly increase efficiency in M&D companies by streamlining processes, reducing manual errors, and enhancing productivity. However, John encourages those who choose to pursue automation to proceed with caution. “While automation can enhance efficiency and increase productivity, it requires careful planning and consideration of costs, tax implications, and the impact on operations,” he added.
How We Can Help
At TBG, we understand the unique challenges facing M&D businesses and are dedicated to helping them achieve their goals. If you need further guidance or have any questions on this topic, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
