Small manufacturing firms find efficiency saves money

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.

One firm, Prosoco, cut costs by changing its packaging. It switched from plastic containers to corrugated cardboard with plastic bags inside, which means more items can fit in a single truck for shipping.

This change helps operations run more efficiently, the company's spokesman, Gary Henry, told the publication.

"We buy a lot of containers and we ship a lot of containers," he remarked, adding that ten of the firm's product lines will use the new packaging by the end of the year.

There are a number of ways that firms can improve their energy efficiency to save money, including installing compact fluorescent light bulbs and limiting the amount of driving done by employees.