Manufacturing Companies

With oil production estimates falling and the credit crunch continuing to make its presence felt on business and banks, a significant drop has also been recorded in the manufacturing industry.

Data released by the Federal Reserve reveal that - over the course of September - production rates across all industries fell by a seasonally adjusted amount of 2.8 percent from August.

This figure represents the largest fall seen for more than 30 years - however, economic experts had been expecting an average drop of 0.8 percent.

As the credit crisis rumbles on, a significant number of small organizations are still looking towards business growth.

In the Small Business Research Board's confidence index of small manufacturing companies, some 41 percent of the owners and managers of the firms questioned are looking forward to an increase in revenue over the next 12 months, Market Wire reports.

Meanwhile, 44 percent reported that they expect to continue hiring staff over the coming 12 months at the same rate as they have done in the previous year.

Fallout from the credit crisis is hitting some manufacturing companies, resulting in cash flow problems, a report in the Wall Street Journal reveals.

Pennsylvania's Traco, a manufacturer of replacement windows, told the publication that the construction companies it sells to have been putting millions of dollars of orders on hold because they are facing financial problems.

The rising price of commodities is causing financial problems for many small businesses, which may be battling to make payroll and pay vendors.

Some firms are even being forced to raise prices, a tactic which can be a risky prospect in this economy, when customers are searching for the best deal possible.

Implementing an efficient and intelligent inventory management system can have a significant effect on a manufacturing company's bottom line, an expert has suggested.

Nadeem Mazher, CEO of Custom Technology Solutions, told Supply and Demand Chain Executive that business owners who "treat inventory as a significant asset line item on the balance sheet" will reap a number of rewards.

As more small manufacturing businesses are hit by rising costs and find themselves confronting cash flow issues, some are finding novel ways to save money.

According to a report in the Lawrence Journal-World, streamlining procedures and increasing efficiency are two ways that these companies are responding to financial problems.

In the world of manufacturing, size really does matter, particularly when falling production orders hit cash flow and borrowing becomes a necessity.

The most recent Manufacturers Alliance/MAPI Quarterly Industrial Outlook reveals that industrial production decreased by an annualized rate of 3.9 percent during the second quarter.

The manufacturing sector may currently be suffering due to rising prices, but the industry has the strength to "weather the storm," an expert has said.

Scott Slabotsky, managing director of accounting, tax and advisory for Cbiz, told the Kansas City Star that manufacturing is one area that he would consider recommending to entrepreneurs for future growth.

Factors including tighter lending standards, low consumer confidence and higher costs have all provided a challenge to small businesses in Oregon, according to reports.

Jeff Thredgold, economic consultant to LibertyBank, told the Register-Guard that the state is sharing in the same economic troubles currently affecting many areas of the U.S.

Manufacturing companies of all sizes are feeling the heat, as their bottom line is threatened by rising energy prices.

The high cost of gas and electricity is causing the price of materials to rise, putting pressure on all parts of the supply chain, Western Michigan Business Review reports.