THE ROAD
TO RECOVERY
Practical steps manufacturers can take to maximise
their COVID-19 recovery
COVID-19 has been a fascinating catalyst
of change for many fi rms in the
manufacturing sector. Although the
pandemic pushed people across the
industry far outside of their comfort
zones, for many it also resulted in
improved leadership and strategy, and proved just
what we are capable of when put in a deal-breaker
situation. It has not been uncommon for order
books to see improvements, cash fl ow to prove less
problematic than anticipated and for productivity
of staff to increase.
Much of this has been down to the speed of
adjustment of manufacturing businesses. Common
strategies have included changing product
portfolios to capitalise on market demand, such as
with PPE, slimming down product ranges to focus
on volumes of key products, and adjustments to the
supply chain, where for example components from
overseas couldn’t be obtained.
Changing staff contracts
to embrace either core hour
contracts or annualised
hours has helped cope with
peaks and troughs of orders.
This was particularly key for
workplaces with fl uctuation in
work demands, such as some
manufacturers, warehouses,
retail and highly seasonal work
such as tourism.
Businesses have also
been working in a far more
streamlined, effi cient and
structured way with fi ngers
fi rmly back on pulses and
decisions made more swiftly and
aggressively. Many have been
surprised at how well they have
coped with people on furlough.
This has and will have ongoing
repercussions, but in some
cases it has forced the hand of
managers in improving processes
to cope.
There has also been a
signifi cant shift in e-commerce
with regard to B2B v B2C selling;
many fi rms have successfully
shifted to B2C with the benefi t
of increasing margins this brings
from previous B2B sales. Many
report a 300% increase in sales
via their websites, representing
a new and eff ective route to
market and a gateway to some
new audiences.
The role of the accountant
RECOVERY SEPTEMBER 2020
throughout the pandemic has
been wider than the traditional
forecasting and cashfl ow
management role. The value
in your advisor is spotting
opportunities for the business
and having someone who can
provide cross referrals, putting
people in contact with each
other to enable quick adjustment
to business operations. Examples
of this have been with supply
chain, web development, and
contract terms and conditions
review. This has contributed a
new interesting dynamic to the
manufacturing world with regard
to collaboration. Collaboration
has proved key to both keeping
businesses running, but also
successful digital transformation.
It has begun the breaking
down of traditional silos within
organisations and the external
BY GUY HODGKINSON, PARTNER AT MHA MACINTYRE HUDSON
"The furlough scheme has
forced the hand of managers
in improving processes."
30 www.manufacturingmanagement.co.uk
/www.manufacturingmanagement.co.uk