The Different Types of Small Business Manufacturers

Global Resources is a full-service business development group and general management consulting firm that specializes in many industries, including small business manufacturers.    We have seen firsthand that manufacturers in the small business arena are growing faster than larger manufacturers which are often slow to adopt new technologies and new manufacturing methods.  This is partially due to organizations such as the American Small Manufacturers Coalition (ASMC), which exists to promote small manufacturers and to lobby government to assist with legislation and federal programs.

Small manufacturers can offer specialized and personalized products that larger manufacturers cannot make profitably.  In addition, niche manufacturing by small manufacturers allows them to operate in areas that have little or no competition from larger companies. When small businesses are involved in manufacturing, there are a number of manufacturing methods that are employed. These are flexible, continuous, intermittent and custom manufacturing.

1. Flexible Manufacturing - Flexible manufacturing uses equipment that is controlled by a number of Computer Numerical Control (CNC) computers. The production relies more on robotic cells than manufacturing personnel, which allows the business owner to change the products manufactured to react to customer or market needs.
2. Continuous Manufacturing - This process is basically an assembly line that produces a single finished product rather than a number of products or products made specifically for a customer order. The assembly line can be made up of a number of workstations or work centers where individual operations are made on the product as it passes along the line. This manufacturing method is ideal for small businesses that do not manufacture items that are customizable. This allows every finished good that is produced to be sold to any customer without modification.
3. Intermittent Manufacturing - If a small business is going to manufacturer products that are of a similar type, they can adopt an intermittent manufacturing method. Businesses that manufacture items that are similar in nature, but have variations, are suitable for intermittent manufacturing. For example, a company that only manufactures tires for cars will sell tires that are of different sizes to fit a variety of cars. Businesses will manufacture batches of the same product depending on demand and then will manufacture a batch of the same or another product. This type of manufacturing is good for products, which are based on fluctuating demand.
4. Custom Manufacturing - This particular method is used by a large number of small businesses. This method allows business owners to fully customize their finished product to the requirements of the customer. Many items can only be manufactured in this method due to their complexity or the skills required in manufacture cannot be replicated by a machine. Small business owners that work alone often specialize in items that are made using custom manufacturing.

To learn more about us and / or to schedule your appointment with the business consultants at Global Resources LLC, call us at 855-338-0266.