Are You Limiting Your Fabrication Shop’s Growth?

Many fabrication shops today are in the position of going from job to job, contract to contract. Managers at these companies may find themselves waiting for these contracts while hoping market conditions will change so that business will pick up.

What’s Holding You Back From Being Pro-active?

There are many reasons why companies choose the status quo instead of being proactive, and they may seem like good reasons. Many fabrication shops have been operating the same way for decades.

Common ways fabrication shops could be limiting or impeding their growth:

focusing only on servicing existing customers
working with outdated machinery/avoiding purchase of equipment that could open up new markets/industries
not actively looking for new business or exploring new opportunities

Fab Shop Realities

Industry experts agree that few shops have long term contracts in place. Nobody knows what will happen in the future and companies often can’t predict what their capital will be. You can see why some businesses find it difficult to make a case for spending. However, despite the seemingly unsettled economic situation, the industry is starting to turn around and companies are beginning to invest.

Mindset the Problem

So if things are picking up and some companies are starting to invest in their businesses, what is the real problem? It seems the issue is more one of perception than reality. The current mindset seems to be one of extreme caution with companies unwilling to invest in equipment.

Basically, it’s more of a lack of business confidence and not the real state of the industry today. Many companies are actually sitting on retained earnings and are simply afraid to spend.

Growth is the New Reality

Although there is an element of global uncertainty, the recent US economic recovery is a reality that is affecting us positively. In fact, there are industry association reports and much anecdotal evidence indicating that production is up in the fabrication industry, with stats showing growth in a number of sectors.

Canada a Rising Star!

The good news is that new machine sales, while not extraordinary, are reputedly on the increase. Also the dropping Canadian dollar is helping metal goods and exporters. Canada is looking like a bright light in the manufacturing industry today.

Manufacturing Environment Positive

This news should serve as inspiration and give companies a boost of confidence. It’s important to change our old mindset which is counterproductive to our future gains. We can be encouraged by the US and break out of caution mode, take more risks and invest in our businesses. This will allow us to create more growth and, ultimately, more success.