When your facility is routinely working at capacity but orders keep pouring in, you may be seeing the first of many signs that it’s time to expand your manufacturing operation. Look for more clues that suggest it’s time to grow your facilities.
Customers Keep Asking for More
When you’ve built a solid pool of regular customers who stick with you, and your cost of acquiring new customers has gone below the long-term value of retaining the ones you’ve got, you’re primed for expansion. But the true sign to look for is if your customers consistently ask for something you can’t currently provide. They want to buy from you, but you can’t seem to meet their needs. Listen to your customers; they can help guide the direction of your expansion.
You’re Overcrowded and Can’t Accommodate All the Workers You Need
If your floor space is packed and your current team is cramped, you need to expand your facility. If you’ve added workers to meet increased demand, but your current space can’t accommodate them adequately with restrooms, locker facilities, or breakrooms, you should consider looking for a bigger space.
You’re Making a Comfortable Profit
Your cashflow is good, and your operations are profitable. This suggests you could expand your profits by expanding your operations. Scaling up your facilities could scale up your profits, too.
Your Industry Is Growing
If the industry you’re in is growing strongly, and especially if there are a limited number of players to meet demand, you may be in a good position to expand. If your industry is growing, it is likely also changing. Expansion could be your way of staying ahead of industry innovations and being prepared to take advantage of them.
If you do decide it’s time to grow by adding facilities, site selection becomes a critical factor in the success of your effort to grow. You may find that your best choice is to grow right where you are, or you may discover that a completely new location will provide the best opportunities for successful expansion. Either way, you should congratulate yourself and your team for making your company successful enough to recognize that it’s time to expand your manufacturing operation, and to grow beyond your current capacity.