The Rebirth of the American Factory
Despite the lack of popularity of the American factory, there are still some brave entrepreneurs who are jumping into production. Some are finding factories that have struggled and are bailing them out and restructuring in order to make them profitable once again. When companies take the time to manufacture their own brand it says a lot for their commitment to their product and their community. It’s also a way to eliminate the middleman and keep costs under control.
There are a couple of different ways to go about opening a factory. One is to renovate an existing space that may not have had the success its former occupants were hoping for. The other is to buy or lease warehouse space and convert it into a factory.
Renovating an existing factory
Since factories have had their share of struggles across the country, it’s entirely possible that you might hear about one closing down. One popular success story of a renovation gone right happened with the Chobani yogurt factory. The C.E.O of Chobani took over a factory that had been cast aside by a larger food producer. While the larger company was unable to profit, the new owner was able to step in—and the result was one of the most popular Greek yogurts on the market.
With a product like yogurt, domestic production makes sense, and since Greek yogurt is supposed to be higher quality, consumers don’t mind paying a little more. In Chobani’s case, the factory has been going strong since 2005, when it employed just five people. Now, over 2,000 are involved in making Chobani yogurt.
In addition to taking over an actual production facility, it’s also possible to find warehouse space to renovate. It may take longer, but with careful planning, it can be profitable too.
Starting a factory from scratch
Even for those who have the pocket change to open up a factory from scratch, the budget will always be an issue. However, implementing policies that advocate efficiency and eco-friendly operations can minimize costs and allow the business its best chance of remaining profitable.
Once the building is finished, the right equipment should be purchased. Many times, new companies will buy used equipment and use it until they begin to see a profit. While used equipment is acceptable, it should be in good condition so that repairs don’t take too big of a bite from the budget.
Investing in Responsible Trash Management
No matter what you make in your factory, you’re bound to have both your product and a good deal of waste as a result. In order to continue to present yourself as a responsible business, that trash needs to be taken care of in a responsible way. Those who fail to follow the necessary protocols and government regulations can wind up facing fines that can easily take a bite out of the bottom line.
The proper placement of trash and recycle bins, and using quality trash bags can keep your work site clean and orderly and reduce the chance of injury. These little things matter too, and that little extra attention to detail, and willingness to invest in the new American factory may contribute to more success than just your own
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