So, you're thinking about building product manufacturers again. And, just as with every other type of manufacturing sector, the industry is suffering from challenges to keep up with. In the last two decades, the building and construction industry has been buffeted by many factors including subprime loans, a rapidly shrinking residential housing market, and the collapse of commercial real estate values across the country. But the building industry, like so many other industries, is also suffering from a lack of leadership. How can building product manufacturers get a breakthrough before the next economic downturn?
What can building product manufacturers do in the next year or two to bounce back? Here are some tips:
1. Embrace the entrepreneurial revolution as always. Although the catalyst for change is (and has been) the advent of the Internet, which has allowed online entrepreneurs to bypass middlemen, and thereby bypass expenses, building product manufacturers have never been more visible to consumers. If you haven't yet thrown your marketing campaign into gear, consider Revit's growth during the past 12 months as a sign of a turning point in consumer attitudes toward self-directed product brands. A strong network of trusted distributors is critical to a company's survival in this competitive environment.
2. Design tools, not project outcomes. In an era where design tools are the order of the day, building product manufacturers must invest heavily in the r&d. Good design tools give the manufacturer real-time information about the current state of the design process. Manufacturers need to make informed design choices as opposed to assumptions about what needs to be done, delivered, and completed.
3. More design teams, not fewer. As mentioned above, building product manufacturers are turning to multi-disciplinary project teams to increase efficiencies. However, too few project teams with overlapping skills can be problematic because they prevent synergies, delays, and cost overruns.
4. Social Distancing. We live in a digital age. Customers expect to interact with their product and its manufacturer through social media sites such as Facebook and Twitter. Manufacturers who are aware of this and take the time to engage customers through such sites can greatly leverage social distancing to their advantage.
5. Use software tools, not end-users. End-users may not be willing or capable of designing, maintaining, and operating the complexities of complex software systems. Product building product manufacturers who invest heavily in these tasks early on can avoid many of the headaches that arise in dealing with end-users and leave more time to focus on building their brand.
6. Use configurators. Product manufacturers who invest in configurators often get an edge because it enables them to make changes quickly and test new designs without having to change their product design. configurators can also facilitate the creation of quality testing labels, which are crucial for quality assurance. These advantages are especially apparent in the manufacturing of products with complex interfaces.
7. Build internal teams. Many companies believe that they can better control quality control, operational efficiencies, and product information interchange by building their internal teams. While some companies have good ideas for how to do this, like using configurations, there is a significant drawback: internal teams usually lack the expertise, resources, and motivation needed to deliver a high-quality product. The other disadvantage is that building internal teams can take a lot of time and money. In short, the return on investment is not great.
8. Use configuration management tools. Product manufacturers who use configuration management tools have an easier time migrating existing design teams into new content creation teams. These tools allow the manufacturer to create a standardized component set that can be used throughout the company, which frees up personnel to focus on more important tasks.
9. Work with outside vendors. Some product manufacturers work with external vendors, such as appliance designers and power installers. Some companies, however, have found a more productive route by working with third-party organizations that are familiar with meeting firm standards and the latest design specifications. This approach allows manufacturers to focus on developing their unique products while allowing outside parties to provide helpful inputs at various stages of the product development process.
10. Work with content management tools. Many product manufacturers make use of configurators and meeting firm standards, but they still find themselves falling short when it comes to managing their product information. If they want to stay up to date with today's market, they need to invest in reliable content management tools, which allow them to manage and track all of their products' information from a central location.