Growth is the goal of every manufacturing organization, but with growth comes challenges – and one of the most significant challenges is running out of space. In a recent episode of the Manufacturing Executive Podcast, Alex Garland and Christopher Yows from Burns & McDonnell shared their insights on preparing for a manufacturing facility expansion.
Garland and Yows emphasized the importance of establishing a stakeholder group to evaluate success criteria when considering a facility expansion. This group should assess existing operations and capacity while considering workforce availability, automation levels, and facility sustainability. Yows noted, “The biggest component of any operation is your labor. And so trying to figure out how to maximize your labor costs is super important.”
One of the key takeaways from the podcast was the significance of early planning. “The reality being when you understand that you’re constrained on your production side of things, you don’t know what you don’t know,” Garland explained. “So you understand that there’s a problem down the road somewhere, but you can’t begin to understand what the solutions to that problem might look like until you’ve spent the time and energy into some sort of master planning, pre-capital investment study or effort to wrap your arms around what that scope is going to look like.”
Garland and Yows also discussed the various financial incentives and support options available for facility expansions, including state and local incentives, tax breaks, and utility concessions. However, they cautioned against overpromising when negotiating these incentives, as failing to meet agreed-upon terms can result in clawbacks.
When it comes to designing floor plans for maximum space utilization and efficiency, the duo stressed the importance of understanding the manufacturing process and flow, mapping out people, material, and waste movement and prioritizing employee welfare and safety. They also touched on the role of technology and automation in facility expansions, advising manufacturers to identify the purpose and return on investment of automation while considering workforce training opportunities.
Perhaps the most pressing concern for manufacturing leaders considering a facility expansion is avoiding disruption to current operations. Garland and Yows recommended establishing trusted partners with experience in strategic problem-solving and implementing containment measures to minimize tie-in or cutover periods.
I feel they need to be as hypersensitive about risk management and mitigation, of their existing operations, no different than when you’re executing whatever that capital project is. You need to look at their overall supply chain and plan, and plan for the worst, right? What happens? You never know what’s going to happen with mother nature, you never know what’s going to happen with whatever the unknowns.
As manufacturing organizations navigate the complexities of facility expansions, the insights shared by Alex Garland and Christopher Yows serve as a valuable roadmap for success. By prioritizing early planning, considering workforce needs, leveraging financial incentives, and mitigating risks, manufacturers can position themselves for sustainable growth in an ever-evolving industry.
To learn more about Burns & McDonnell and their expertise in manufacturing facility expansions, visit www.burnsmcd.com or connect with Alex Garland and Christopher Yows on LinkedIn.
