{"id":7323,"date":"2025-06-03T03:38:36","date_gmt":"2025-06-03T03:38:36","guid":{"rendered":"https:\/\/sblog.seebiz.com\/blog\/?p=7323"},"modified":"2025-06-11T05:42:15","modified_gmt":"2025-06-11T05:42:15","slug":"best-ways-to-grow-a-small-manufacturing-business","status":"publish","type":"post","link":"https:\/\/sblog.seebiz.com\/blog\/best-ways-to-grow-a-small-manufacturing-business\/","title":{"rendered":"What Are the Best Ways to Grow a Small Manufacturing Business"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Before we jump into the solution for &#8220;the best way to grow a small manufacturing business,\u201d we need to focus on the major problems holding it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With President Trump focusing on bringing manufacturing back to the US, other problems might wait for the industry&#8217;s return: the <\/span><a href=\"https:\/\/www.businessinsider.com\/companies-are-struggling-to-fill-existing-manufacturing-positions-2025-5?token=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJmaXJzdF9uYW1lIjoiTWFpbmZyYW1lIiwibGFzdF9uYW1lIjoiTG9naWMiLCJtZW1iZXJfaWQiOiJkNDI0Y2UwZC03NzZmLTQ2ZmMtODM1ZC0yZThkYTk1NTI0MTMiLCJlbWFpbCI6Im1hcmtldGluZ0BtYWluZnJhbWVsb2dpYy5jb20iLCJzdWIiOiJkNDI0Y2UwZC03NzZmLTQ2ZmMtODM1ZC0yZThkYTk1NTI0MTMiLCJpYXQiOjE3NDg4MzgxNjAsImV4cCI6MTc1NjYxNDE2MCwiYXVkIjoiQjZzSVhLTGlpbiIsImlzcyI6Imh0dHBzOi8vd3d3LmJ1c2luZXNzaW5zaWRlci5jb20iLCJqdGkiOiJhMGZiZjgwYi0yMDcyLTQzMjktYTJiNi1jOWU1ZWMwYjM4MTcifQ.62Foc7FyqCqdGV9zgLYHnNnv6DJKvqvEfFHXnzcXdBI&amp;accountCreated=true&amp;type=social\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">skill gap, poor employee retention, less tech adoption, and the high cost of domestic labour.\u00a0<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Before focusing on growing the business, we should consider how small manufacturing businesses can resolve the major issues that directly impact their growth.<\/span><\/p>\n<h2><b>Filling the skill gap<\/b><\/h2>\n<h3><b>Current scenario of skills gap:<\/b><\/h3>\n<p><a href=\"https:\/\/www.businessinsider.com\/us-industries-highest-share-65-and-older-workers-2022-11#10-pottery-ceramics-and-plumbing-fixture-manufacturing-1\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Skills gap, an aging workforce, negative perceptions,<\/span><\/a><span style=\"font-weight: 400;\"> and the mounting cost of hiring domestic labour &#8211; that&#8217;s what the US manufacturing industry has to say about its sector, Business Insider reported recently.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most US manufacturing firms are small:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total manufacturing firms in 2022: 239,265<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Small firms (under 500 employees): 4,177<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">75% of these have fewer than 20 employees<\/span>&nbsp;<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">93.1% have fewer than 100 employees<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Most employment comes from the first category (with fewer than 500 employees). The employment rate in the US manufacturing industry has been dwindling since 2022. The factors might be many.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Manufacturing Institute, more than 65% of companies said recruiting and retaining workers is their top business challenge. Another closely related issue is that most of the manufacturing labour is retiring and aging, leading to an average of <\/span><a href=\"https:\/\/www.businessinsider.com\/companies-are-struggling-to-fill-existing-manufacturing-positions-2025-5?token=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJmaXJzdF9uYW1lIjoiTWFpbmZyYW1lIiwibGFzdF9uYW1lIjoiTG9naWMiLCJtZW1iZXJfaWQiOiJkNDI0Y2UwZC03NzZmLTQ2ZmMtODM1ZC0yZThkYTk1NTI0MTMiLCJlbWFpbCI6Im1hcmtldGluZ0BtYWluZnJhbWVsb2dpYy5jb20iLCJzdWIiOiJkNDI0Y2UwZC03NzZmLTQ2ZmMtODM1ZC0yZThkYTk1NTI0MTMiLCJpYXQiOjE3NDg4MzgxNjAsImV4cCI6MTc1NjYxNDE2MCwiYXVkIjoiQjZzSVhLTGlpbiIsImlzcyI6Imh0dHBzOi8vd3d3LmJ1c2luZXNzaW5zaWRlci5jb20iLCJqdGkiOiJhMGZiZjgwYi0yMDcyLTQzMjktYTJiNi1jOWU1ZWMwYjM4MTcifQ.62Foc7FyqCqdGV9zgLYHnNnv6DJKvqvEfFHXnzcXdBI&amp;accountCreated=true&amp;type=social\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">500,000 jobs opening each month for several years.<\/span><\/a><\/p>\n<h3><b>Impact of Aging Workforce and Tech Stack Changes:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Companies are facing a large skill gap, with old employees familiar with outdated tech stacks and techniques. This is quite concerning, as companies returning to the US cause more openings but fewer positions filled. According to the Manufacturing Institute and Deloitte, between 2024 and 2033, the manufacturing industry will need 3.8 million net new employees. That needs serious consideration.<\/span><\/p>\n<h3><b>Education and Technical Expertise Gap:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Another closely related factor is the education gap. Only<\/span><a href=\"https:\/\/www.linkedin.com\/posts\/kjosephabraham_america-has-500000-unfilled-manufacturing-activity-7330270671807139841-9FaV\/\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\"> 40% of manufacturing jobs <\/span><\/a><span style=\"font-weight: 400;\">involve directly making products. The other 60% require technical expertise in robotics, electrical systems, and digital controls. That means people without college degrees won&#8217;t find appropriate roles in the industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s the same issue raised by Sameeksha Desai, an Associate Professor at Indiana University and director of the Manufacturing Policy Initiative. Skills like cybersecurity, digital skills, and data management are also workforce concerns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But is America working on training its workforce yet?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Only <\/span><a href=\"https:\/\/www.thirdway.org\/memo\/americas-apprenticeship-gap-in-two-charts\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">0.3% of American workers<\/span><\/a><span style=\"font-weight: 400;\"> have apprenticeship training, compared to 3.6% in Switzerland, 12x higher. That puts us behind when it comes to getting skilled labour.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7319 size-full\" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process.webp\" alt=\"what is vendor invoice management Process\" width=\"1451\" height=\"1600\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process.webp 1451w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-272x300.webp 272w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-929x1024.webp 929w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-768x847.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-1393x1536.webp 1393w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-91x100.webp 91w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-408x450.webp 408w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/what-is-vendor-invoice-management-Process-1088x1200.webp 1088w\" sizes=\"auto, (max-width: 1451px) 100vw, 1451px\" \/><\/p>\n<h2><b>Recommended Solutions to Fill the Gap:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now, the solution lies in companies either investing in employee skills development or considering hiring employees based mainly on skills rather than seeking a compulsory four-year degree.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The shift will take time to adjust, but with rising concerns, there should be direct investment to fill the skill gap as early as possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By considering workforce challenges, businesses can effectively fill the open positions in the manufacturing sector.<\/span><\/p>\n<h3><b>1- Higher domestic labor cost<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">With the recent trade war bringing manufacturing back to the US, the ground is not yet ideal for manufacturers operating in other countries to play it safe and economically in the US.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Domestic labor costs in America are much higher than in many other countries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, manufacturing wages in China are now about 20% of those in the US, and in India, they are around 3% of US wages. In Mexico, wages range from $2 to $6 per hour; in the US, they can exceed $20 per hour.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A survey conducted by Apollo in 2024 also highlighted the wage difference between domestic labor in different countries, with the US topping the chart with the highest monthly manufacturing wage.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7324\" src=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind.webp\" alt=\"US manufacturing industry falling behind\" width=\"1405\" height=\"767\" srcset=\"https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind.webp 1405w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind-300x164.webp 300w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind-1024x559.webp 1024w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind-768x419.webp 768w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind-100x55.webp 100w, https:\/\/sblog.seebiz.com\/blog\/wp-content\/uploads\/2025\/06\/US-manufacturing-industry-falling-behind-700x382.webp 700w\" sizes=\"auto, (max-width: 1405px) 100vw, 1405px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.apolloacademy.com\/us-wages-vs-wages-in-china-and-india\/#:~:text=Manufacturing%20wages%20in%20China%20are,US%20wages%2C%20see%20chart%20below.\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">Source<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, manufacturing the same product that companies were manufacturing in other countries in the USA might cost them 4x\u20145x as much.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That may disrupt their normal manufacturing cycle.<\/span><\/p>\n<h3><b>2- Poor employee retention<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The same factors that make recruitment difficult also hinder retention. Many manufacturing jobs that don&#8217;t require a four-year degree are considered repetitive, which causes a perception of a lack of advancement in employees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Similarly, with technological advancement, companies seek employees with broader skill sets. Still, the older workforce, lack of training, and getting too comfortable with the typical manufacturing framework slow down manufacturing industries, ultimately causing both employees and the company to feel overwhelmed.<\/span><\/p>\n<h3><b>3- Less technological adoption<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Tech is on its rise. In every major sector, we have been seeing revolutions. Companies are working 2x faster with new tools and technologies on tasks that are repetitive and too boring for human resources. That created the need for humans in the other side of manufacturing, which is more tech-driven, like robotics, electrical systems, digital controls, cybersecurity, etc.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, with fewer apprenticeship programs and less investment in skill development, there is a gap between what manufacturing aspires to be and its current position.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturing needs young minds with technological creativity to scale small manufacturing businesses and create more opportunities for others.\u00a0<\/span><\/p>\n<h2><b>The best way to grow a small manufacturing business<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">We identified the major problems that small manufacturing businesses are facing. Now we come to the part where we are going to discuss how we can still scale,<\/span><\/p>\n<h3><b>Start small<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you haven&#8217;t yet invested in technology. Start using it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Invest in smart technology and ERP (enterprise resource planning) software. This software system helps you manage everything &#8211; inventory, orders, production, and finances &#8211; in one place. So if you manually do all of this, you are hurting your finances and time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A small investment can make big returns.\u00a0<\/span><\/p>\n<h3><b>Invest in employee skill development<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If your best employee lacks a specific skill set that can double his performance, then instead of hiring a new employee with that skill set, you can simply invest in the skill development of your current employee. This approach will cost you less and generate more revenue than hiring new employees. According to an HR Magazine report, companies investing more than <\/span><a href=\"https:\/\/hrzone.com\/blog\/how-investing-in-training-benefits-the-business\/#:~:text=Effective%20training%20boosts%20your%20future%20bottom%20line&amp;text=According%20to%20an%20HR%20Magazine,with%20a%20lower%20training%20budget.\" data-wpel-link=\"external\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">$1500 per employee every <\/span><\/a><span style=\"font-weight: 400;\">year show on average 24% higher profit margins than companies with a lower training budget.<\/span><\/p>\n<h3><b>Build strong supplier relationships<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">For a manufacturing business to operate smoothly, it must have a strong supplier relationship. Supply chain issues have been a big headache for manufacturers lately. A single delay can stop your operation if you rely on just one or two suppliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How to improve:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Build relationships with multiple suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consider local suppliers to reduce shipping times.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Negotiate clear contracts and backup plans.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Check in with your suppliers regularly. Good communication can help you spot problems early and find solutions before they become crises.<\/span><\/p>\n<h3><b>Use Lean Manufacturing\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Lean manufacturing isn\u2019t just for big companies. It\u2019s about finding and cutting out waste, whether that\u2019s time, materials, or money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simple steps to get started:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Organize your workspace (the \u201c5S\u201d method: Sort, Set in order, Shine, Standardize, Sustain).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Map out your production process and look for bottlenecks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ask your team for ideas to save time or materials.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Start small. Pick one area to improve each month and build from there.<\/span><\/p>\n<h3><b>Conclusion:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are multiple ways to grow your small manufacturing business, but focusing on the root causes will greatly help you in the long run. As a whole, US manufacturing is experiencing a shift once again after the COVID-19 outbreak, and all we have to do is get ready to face it.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Before we jump into the solution for &#8220;the best way to grow a small manufacturing business,\u201d we need to focus on the major problems holding&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-7323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Are the Best Ways to Grow a Small Manufacturing Business<\/title>\n<meta name=\"description\" content=\"Discover why US manufacturing 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