22 MiMfg Magazine March 2021
Premium Associate Member
What Comes After COVID-19 ?
Impacts of Global Pandemic on Manufacturing Automation and Strategic Planning
By Tim Finerty & Bryan Powrozek • Clayton & McKervey
COVID-19 has impacted businesses around the world by disrupting supply chains , impacting cash flow and accelerating the pace of digital transformation . However , instead of dwelling on the negative impacts , it ’ s time to plan for the future . Companies need to develop a strategic comeback plan to guide them on the path of growth . Here are some recommendations to put businesses in the best future position .
Strategic Planning Advice : Economic slowdowns are a good time to prioritize projects that businesses never seem to find the time for . With this opportunity , owners should think about the opportunities that will be available on the other side of the slowdown and determine how to set themselves up for success . These four strategies can advance businesses post-pandemic :
• Develop new products , applications and services
• Standardize and improve business processes
• Explore business transaction opportunities
• Focus on short- and long-term cash forecasting
Develop new products , applications and services
The slowdown in customer activity , combined with government programs , intended to help employers to retain employees , means companies may have capacity to develop new products or services . Businesses are shifting toward automation amid COVID-19 , not only to increase ROI , but also to save lives . The pandemic revealed the supply chain ’ s sensitivity to disruption and the need for more automation solutions .
• Examine new applications for existing products
• Consider new products or product features
• Leverage automation and data
Standardize and improve business processes
Now is also a good time for businesses to refine and improve internal processes . This involves taking a closer look at three distinct , but equally important , areas of operations : product development , financial management and data analytics .
• Product development
• Financial management
• Data analytics
KPIs are useful for evaluating the impact of implemented changes and include metrics , such as employee utilization , revenue by employee , day ’ s cash on hand , gross profit and gross margin . Evaluating these KPIs will help business owners to track financial performance and plan for recovery . Companies that follow this guidance will be one step closer to converting transactional data into actionable insights that will help them to plan for a variety of recovery scenarios .
Explore business transaction opportunities
If considering buying or selling a business at some point in the future , now is the time to prepare . Start defining aspirations , getting finances in order and taking the right steps forward .
• Consider family-wealth transfers
• Acquisitions
• Exit plan
• Baby-boomer retirement trends
• Retain key employees
Focus on short- and long-term cash forecasting
Here are some ways for businesses to free up cash flow to survive the downturn and accomplish long-term goals .
• CARES Act
• R & D tax credits
• Government loan programs like the PPP and ERC
• Cost segregation studies
Focusing on these best practices can help put businesses on a path of success as they navigate the pandemic and adapt to remote working environments . 6
Tim Finerty is a business consultant with a proven track record of helping growth-driven companies in the industrial automation sector succeed . He may be reached at tfinerty @ claytonmckervey . com .
Bryan Powrozek is a Senior Manager in Clayton & McKervey ’ s Industrial Automation practice , focused on Research & Experimentation Tax Credits . He may be reached at 248-208-8860 or bpowrozek @ claytonmckervey . com
Clayton & McKervey is an MMA Premium Associate Member and has been an MMA member company since February 2018 . Visit online : claytonmckervey . com .
This article was originally published in the September 2020 issue of the Control Design magazine .