Staying on budget is one of the most important aspects of any business and there are plenty of manufacturing companies that put their budgets first.
With well-built budgeting in mind, here are a handful of manufacturing companies that really know how to budget….
Manufacturers Spending Wisely
No matter how large or small, manufacturing companies of all sizes have to keep their budgets on track.
As the government increases taxes and healthcare costs for major U.S. manufacturers, budgetary concerns become even more critical.
Here are just a few ways some manufacturers are dealing with their finances:
- American Standard – American Standard Brands is a major manufacturer of toilets, sinks, and other plumbing products. To keep their budgeting on track, the company cuts back on production if and when sales drop from one quarter to the next.
- Superior Products LLC – The natural gas fittings and regulators manufacturer Superior Products LLC budgets wisely by keeping track of its exporting practicing. They bulk ship items across seas and hold off on importing supplies until they have a full order, which cuts down on shipping costs.
- Boeing Corporation – Even Boeing, manufacturer of commercial airliners, is cutting back in order to stay within budget. Instead of moving forward with their multi-billion dollar 787 Dreamliner project, they are putting it on the backburner until equipment and supplies costs drop.
- Navistar International – Navistar International manufactures military trucks and engine parts. Most of their business comes from Department of Defense contracts and, whenever these contracts slow, Navistar pulls back on production in order to keep its budget in the black.
Although your business might not manufacturer airplanes or plumbing parts, there are some lessons you can learn from major manufacturers when it comes to budgeting. From cutting back to keeping an eye on the numbers, a healthy budget is attainable even in this tough economic climate.
As the following article shows, the two most important budgetary tips you should follow are to keep track of your finances with a free budget template and stay vigilant with the numbers. Budgeting with a template is a helpful way to track your expenses and pinpoint financial issues when they arise.
Likewise, staying hyper vigilant of your business’s numbers is also crucial.
Budgeting once or twice a week instead of once a month is the best approach to take. When your expenses and earnings are always in the spotlight, you’ll have an easier time staying within budget.
Make Your Budget a Reality
From the biggest manufacturers’ to the smallest, run the numbers, see what’s possible, and aim for that financial goal. If you’re doing better than expected, you can adjust your budget accordingly.
However, if you continuously fail to stay within budget, you need to reassess and possibly make some cutbacks like the major manufacturers above.
When it comes to budgeting, your business can definitely learn a thing of two from many U.S. manufacturing companies.
About the Author: Adam Groff is a freelance writer and creator of content. He writes on a variety of topics including budgeting and small business.
Thanks to Nelly Sheina for sharing some additional resources: