by Jennifer Hart Yim | Aug 5, 2020 | Blog, Covid-19
Editor’s note: This is the first in a series of three guest posts by Kate Began of Polycase.
The Covid-19 outbreak has changed the global business landscape in ways that would have seemed unbelievable just a few months ago. Businesses have been forced to reevaluate their approach to everything–from sourcing to operations. The manufacturing industry has seen particularly high levels of disruptions as plants are temporarily shut down and supply chains are disrupted.
A few months into the pandemic, trends have begun to emerge that allow the business community to begin to analyze Covid-19’s impact on American manufacturing. While supply has been constricted on everything from electronics enclosures to pharmaceuticals, demand has mutated in unpredictable ways, and businesses are scrambling to find new strategies for addressing these challenges.
These five aspects have already created major change in the manufacturing economy, and manufacturers will need to face them head-on to create a plan for surviving the continuing challenges of the post-pandemic business landscape.
1. Quarantines and shutdowns have caused some major hits to the bottom line for the American manufacturing industry.
Many U.S. manufacturers were forced to shut down as a result of the “stay-at-home” orders that their states imposed in March and April of 2020. Those that weren’t required to shut down often had to produce at reduced capacity, thanks to lower demand in many industries (as we’ll discuss later).
The result has been dramatic: an estimated 25 percent decrease in yearly profit predictions for the American manufacturing industry. While it’s true that manufacturers in some sectors, such as CPGs and medical equipment, have seen enormous spikes in demand, the overall financial picture for the manufacturing sector (particularly heavy industry) remains disturbing.
Having taken such a painful hit to the bottom line, many manufacturing businesses find themselves limping into Q3 and in need of a new plan for finishing out the year. Easy answers will be in short supply, but manufacturers will need to take decisive action to prevent a bad situation from becoming worse.
2. The devastating impact of lax safety procedures has become apparent.
American manufacturing businesses have to face the facts: During a pandemic, inaction is deadly. We’ve seen uncontrolled outbreaks sweep through meat-packing facilities across the nation, killing dozens and sickening thousands more. While it’s true that meat-packing plants are uniquely vulnerable to the spread of respiratory diseases, the risks apply to any facility in which workers are in close proximity to one another and/or share equipment.
Manufacturers owe it to their employees, their customers, and the world at large to ensure that their facilities don’t contribute to the spread of coronavirus. More than ever, practicing good workplace hygiene has become a matter of life and death. Businesses must be sure to follow the CDC’s guidelines for businesses and employers, and they must strictly enforce compliance among employees.
Steps as simple as requiring masks at work can significantly reduce the chances of disease spread. However, in order to truly reach the level of a responsible corporate citizen, manufacturers must commit to substantial reconfiguration of their processes to institute social distancing in the workplace.
3. Manufacturing supply chains have seen major disruptions.
The globe-crossing supply chains that characterize 21st-century commerce have had their reliability severely tested by the pandemic. China, in particular, has experienced major logistics problems, such as closed ports and grounded flights. With so many of the world’s manufacturing supply chains running through China, many businesses have had to find creative ways to keep their operations running.
Business experts say that this global supply chain chaos has been a major learning experience for manufacturers, who were often caught without sufficient options when their Chinese supply chains began to collapse in February and March. Going forward, these businesses will have to put a new focus on diversifying their supply chains to increase their resilience to globally disruptive events such as pandemics. Those low-priced Chinese components may do great things for the bottom line, but you can’t capture any of those benefits if you can’t get the materials in the first place.
4. Demand has plummeted in some sectors (and exploded in others).
With the Covid-19 pandemic has come an economic contraction that has suddenly plunged the U.S. economy into a recession. As a result, demand has massively decreased in many key American manufacturing sectors. Industry reports demonstrate that demand for everything from heavy equipment to electronics to metal fabrication continues to experience painfully intense contractions.
The silver lining for some manufacturers is that demand has actually increased rapidly in some sectors. Food, beverage, and other essential household CPG manufacturers have all seen massive surges in demand, as have medical supply manufacturers. The demand surge has even reached some unexpected corners such as the DIY home products industry as bored, homebound Americans take on home improvement projects.
These shifts in demand have produced some fascinating examples of the versatility and agility of leading American manufacturers. Top consumer fashion brands have begun production of surgical masks and gowns, while industrial manufacturers like 3M have used their state-of-the-art fabrication facilities to produce ventilators and other key healthcare equipment.
5. Cash flow will be a major priority moving forward.
In a turbulent economy, many manufacturers are reevaluating their cash flow strategies and prioritizing liquidity. By maintaining increased cash reserve levels, manufacturers can prepare themselves better to deal with the constantly shifting nature of the Covid-19 crisis.
Bolstering cash flow effectively requires applying a finance-driven mindset across all levels and departments of a manufacturing organization. The day-to-day practice of supply chain operations tends to be conceptually grounded in inventory management and customer relationships. While these are critical facets that can’t be sacrificed, supply chain operators need to become more practiced in thinking like a CFO and seeing the financial framework that underpins logistics decisions.
However, it’s important to remember that financial concerns should never take priority over the safety of employees and customers. The ultimate goal is to create a system of operations where both employment and physical well-being are safe and well-protected.
The novel coronavirus has given the U.S. economy a massive dose of that most dangerous economic toxin: uncertainty. For manufacturers to continue to thrive and compete, they must turn that uncertainty into innovation and seize the new opportunities that this rapidly changing economy presents to them.
Kate Began serves as the Sales and Marketing Manager for Polycase. She oversees the customer service representatives, assists with product development, and leads the marketing efforts from the Avon, Ohio headquarters. Kate is also an avid Cleveland Indians fan.
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by Fronetics | Jun 9, 2020 | Blog, Content Marketing, Covid-19, Marketing, Strategy, Supply Chain
Too busy? Don’t want to invest in-house? Here are 4 prime reasons organizations opt to outsource content marketing.
No other lead generation tactic is more important to technology marketers than content assets. The new Gartner research — trade shows come in second place — shows the importance of paying heavy attention to how your organization positions itself online. If the Covid-19 repercussions left you no choice but to cut back on marketing or if you have been juggling more than ever, consider the case for outsourcing content marketing to stay competitive and excel.
At a time when some of the biggest supply chain trade shows have been either canceled or postponed, count on content assets to grow in significance. Is your organization up to the task?
In our work with both supply chain startups and multi-national corporations, we have noted a few returning reasons for outsourcing content marketing.
Do you recognize yourself or your organization in any of the following?
Outsourcing content marketing: 4 reasons organizations decide to seek outside help
Too much to do
When content marketing is the umpteenth task on an endless to-do list, the results will suffer. This scenario is particularly common among startups where everyone is wearing as many hats as possible in anticipation of the next round of funding. The haphazard approach to what is being published on social channels and on the blog does the company no favors and leaves the person in charge — frequently with limited marketing experience — feeling frustrated. Instead of letting keyword-optimized content carve out a brand niche and build website SEO, the effort goes nowhere although the will to succeed is strong.
The alternative: Partner with a content marketing agency and turn the focus on your core expertise.
No consistency
The effectiveness of content marketing relies on consistency. But being consistent is a major challenge for supply chain companies, especially when trying to recover from months of unprecedented disruption. As we explained in this post, consistency feeds SEO. Let it slip, and you lose in the online search race. In this case, sudden trade show cancelations may have forced the in-house marketing team to a quick pivot, from executing the company marketing strategy to pouring all efforts into making trade show contingency plans. Add a product launch to the mix and chances are content production will come to a standstill.
The alternative: Keep SEO humming and your online presence strong with an outsourced marketing team invested in your success.
Desire to scale but costs are too high
Needs can arise quickly. There may be a trend that a company wants to jump on or a sudden change in the business environment that warrants the need to scale up content marketing quickly. Several of our clients have sought out Fronetics because they lacked certain marketing capabilities and did not necessarily want or have the resources to make the investment in-house. That is particularly true under current circumstances when some organizations are battling budget constraints and disruption. If an organization wants to capitalize on video marketing, for instance, it can be both time-consuming and costly to train team members or go through a rigorous hiring process.
The alternative: Leverage a team out outsourced content experts to fill the gap without adding fixed costs.
Lack of analysis
The motions of content marketing are repetitive — researching, strategizing, executing, analyzing, revising — but they are so for a reason. Even the most well-intentioned content strategy can fail when an organization does not act on analytics. But for busy organizations, it is not uncommon for those last pieces of the puzzle — analyzing and revising — to be left undone.
What types of content worked well this quarter? How did the email messaging fare? What was the click-through-rate? During the past few months, when disruption ruled, it is hardly surprising if not every step was optimally performed. Yet, it can all the same be damaging to the overall success of the marketing effort if the metrics are allowed to go unnoticed for too long.
The alternative: Let content count with an outsourced marketing team that constantly needs to prove ROI.
Considering the significance of content assets, it pays to do it well. Is outsourcing content marketing right for you?
Read more:
by Fronetics | May 6, 2020 | Blog, Content Marketing, Covid-19, Current Events, Marketing, SEO, Strategy, Supply Chain
So much to say, so little time. Supply chain marketing during Covid-19 — leaning in is better than backing out.
Turmoil does not quite begin to describe the situation that supply chain companies have experienced lately. The Covid-19 pandemic threw in just a few weeks the finely calibrated, just-in-time supply chains into a state of disarray. In the midst of the struggle to get product from Point A to Point B — while also ensuring the health and safety of employees — many companies had little choice but to adopt an all-hands-on-deck approach.
We saw it ourselves as our clients were suddenly buried in challenges that only weeks earlier had posed no issues at all — securing electronic parts overseas, locating warehouse space, finding freight forwarders, moving product out of port, and more.
If supply chain marketing during Covid-19 had to take a backseat during the initial phase of the crisis, beware of staying quiet for too long. Letting your marketing channels sit idle for an extended period, or drastically scaling back at a time when communication matters more than ever, is not a risk-free strategy.
Let us explain why:
Covid-19 supply chain marketing: Lean in or risk losing ground
Go silent — or stay strong
In the wake of the first shockwaves of the Covid-19 pandemic, supply chain companies understandably had to devote extensive resources to regain their footing. Few industries felt the impact as deeply as the supply chain. For some, the disruption opened up a flood of new business, sending the entire organization scrambling to keep up. For others, it meant every budget line item had to be scrutinized.
At the same time, we noted another challenge brewing for busy organizations: Maintaining a strong online presence during a tumultuous time. How do instill confidence in current customers and gain new leads if you say little or nothing at all?
After the first flurry of crisis-related marketing emails that many of us received (“We are here to help”), some companies — overwhelmed by the scope of work — let their social media accounts go silent and blog pages seized being updated.
The risk? Taking a break or withdrawing altogether could put your organization in a worse position later.
A McKinsey study underscores this point — conventional downturn strategies can actually hamper recovery. The performance analysis of 700 high–tech companies during two decades of market contractions showed “making obvious moves (for instance, cutting costs) as well as counterintuitive ones (such as increasing sales and marketing expenditures) quickly can improve a company’s position when the recovery begins.”
Interestingly, the best-performing companies increased their marketing and advertising spend relative to their competitors, but also compared to their own spending when times were better. However, from our perspective, the issue is far from just spend but identifying the most effective marketing channels and tactics at a time when resources may be scarce.
Weaken SEO — or make it soar
The risk of cutting back on supply chain marketing during Covid-19 also extends to search engine optimization (SEO). Rather than a one-time project, SEO needs constant attention to hum. It is the foundation of your effort to improve the quality and quantity of unpaid website traffic by increasing the visibility of your site or page to search engine users.
SEO and content go together
The completion of a well-designed website is only the beginning. If there is anything SEO demands more than anything else, it is content. You simply cannot ace one without the other. New, key-word optimized content is what makes SEO tick. Google Search has for years used a freshness algorithm to index pages. This means fresh content gets rapidly indexed and lands higher in search rankings than older content.
Backlinks — other reputable sites linking to your content — are also crucial to building SEO. When you provide up-to-date, insightful content, chances increase others will notice and link back to your site, especially during a time when so many are online searching for information. The same goes for backlinks and traffic to your site generated by social media.
So, what is the risk of going quiet?
The short of it: SEO can suffer. If content was the backbone of your marketing strategy before the pandemic hit, your organization has likely established a history of domain authority and is, as a result, in a better position to weather the storm. But not even the best of sites can escape the reality of what matters to search engines. Although you can still squeeze juice out of old keywords, lack of new content puts your organization at a disadvantage when search engines evaluate your pages in competition with countless others.
So much to say — can you find the time?
In many respects, supply chain marketing during Covid-19 comes down to this: Who would you want to do business with during a time of great uncertainty? What signals do you want to send to your audience? What do you want to tell them? As challenging as it may be, leaning in is better than backing out.
