Consumer spending follows seasonal trends, and many manufacturers and other types of businesses follow suit. That’s especially true during the lazy days of summer, and unfortunately, companies that experience a significant loss in sales and output can face financial difficulties. With the help of insurance protection for manufacturers, however, it’s possible to weather the summer slowdown and emerge stronger than ever.
Protect Against Liabilities and Loss for Manufacturers
For a manufacturing company, there are several risks that could cause significant financial damage. Insurance protection for manufacturers is one way to address this potential. For example, manufacturing insurance programs often account for product defect liabilities, pollution liability, commercial auto, or errors and omissions. Unlike the predictability of a summer slowdown, companies don’t always get a warning that an issue is coming. It is why insurance protection for manufacturers is essential.
Stay Ahead of the Summer Slowdown for Manufacturers
Given that summer slowdowns are a consistent trend for manufacturers, you can take steps in advance to mitigate the potential losses from reduced output. Over the past few years, fewer workers on the floor, supply chain issues, inflation, and logistics issues contributed to an already tough production season. Instead of trying to wait it out, you can use the upcoming downtime to think strategically about your operations and efficiency and uncover ways to improve output.
Start Relying on Big Data
Within your ordinary course of operations, there is important data to collect. Look at the numbers for your factory’s output during summer months, and see if there are any correlations to supplier relationships, weather conditions, or time-off requests. If you find that labor shortages have an influence, either because of retention issues or paid time off, find ways to boost morale and work the schedule around your employee.
Working four long days and creating a long weekend could boost productivity while allowing your team to enjoy their summer. Stagger planned maintenance shutdowns throughout the year instead of every few weeks in the summer to avoid a bottleneck in production around summer shutdowns.
Put Technology to Good Use
Technology and software are revolutionizing almost every industry, and manufacturing is no different. You can effectively operate your business, thanks to software, sensors, robotics, artificial intelligence, and so much more. Whether it’s the summer slump or you want more control over decision-making and management for the rest of the year, the right technology makes it easy to take charge of production and efficiency.
With the right software, you can track supply chain issues, monitor inventory changes, track customer demand, follow up with equipment issues, and forecast future buying trends. Some tech changes require a significant investment to get started, but over time, you may offset costs as you increase revenue from streamlined workflow, fewer losses, and increased production.
Start Planning Now
Once you know summer is approaching, planning for the slowdown is best. Be proactive by gathering the team and strategizing for the summer months. Reduce the most time-consuming tasks in favor of those that bring more value. Review time off requests and develop ways to handle potential labor shortages.
Manufacturers Can Beat the Slowdown
By getting ahead of the slowdown and investing in manufacturing insurance programs, manufacturers can avoid significant losses related to labor shortages and decreased production. Even though summer is for relaxing and letting loose, you don’t want your company’s output to fall behind.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
