Outsourced Component Manufacturing In a Labor Strapped Market
The world is inundated with talk of labor shortages across industries. From grocery store aisles to new car lots, from restaurant kitchens to small engine workshops and cabinet shops, labor shortages are impacting nearly every aspect of daily life. Service industries and manufacturing alike are strained by the limited availability of skilled workers. In the construction and home improvement industry, staffing levels of manufacturers, trades, contractors, and suppliers are stretched exceedingly thin.
Increasingly, companies are looking to outsource what they can to bridge the gap between demand and supply – supply of materials and supply of human resources. Skilled laborers and craftsmen and women are in high demand in this market. Resources are scarce.
Almost half (46%) of small businesses report that their organization is facing a worker shortage according to data from the latest MetLife and U.S. Chamber of Commerce Small Business Index. While it is common for an outsourcing model to be considered when staffing is tight, it is the leading factor seen in today’s labor-stressed market.
Why consider an outsourced component manufacturing partner in today’s market? Read on for a list of outsourcing benefits and evaluate if outsourcing may be right for your organization.
NEUTRALIZE STAFFING SHORTAGES
Outsourcing a portion of your manufacturing needs is one way to neutralize staffing shortages. A company like Minnesota-based Kambium can absorb a singular production run or produce multiple high-volume orders on your behalf. Outsourcing allows companies to access staffing capacity on a temporary basis. Companies can weather the ups and downs without struggling to staff up and then potentially needing to staff back down with the ebbs and flows of customer demand.
Outsourcing allows organizations to flex as needed reacting to sales volume, ramping up or scaling back to accommodate large orders, seasonal variability, or fluctuating production needs. It allows organizations to expand capacity and capitalize on an upturn in demand without investing in additional staff, equipment, or inventory.
Kambium offers a-la-carte models that allow our partners to pick and choose what to outsource, whether it’s machining parts, assembling cabinets, or assisting with larger production runs.
ALLOW FOCUS TO REMAIN ON PRIMARY BUSINESS
Outsourcing enables your company to keep its focus on core deliverables. Deciding which elements to outsource and which to keep in-house is a critical exercise. Those deliverables that require a significant level of customization, or higher level of expertise may remain in-house, while those that are more time and labor-intensive can be outsourced. Outsourcing these elements allows you to focus on your strengths and on the deliverables that yield the highest margins. It may also free up time to drive growth.
At Kambium, our commitment to continuous improvement means we're always looking for opportunities to do things better, from process changes to equipment upgrades. In fact, when it comes to millwork, store fixtures, closet systems, casework, and more, we're investing in the latest component manufacturing equipment and technology to ensure better precision and quicker turn-around for our customers.
KAMBIUM – A HIGH-QUALITY OUTSOURCING PARTNER SERVICING MINNESOTA AND THE MIDWEST
Minnesota-based Kambium is uniquely positioned to support your organization and take the staffing pressure off your operation. As a leading contract manufacturer of wood laminated components, Kambium understands the considerations that factor into the decision of outsourcing. That’s precisely why we see ourselves as more than just a component supplier, but rather a true partner in helping you meet your business goals. We are committed to high-quality cabinetry manufacturing, assembly, and production backed by superior customer service and the latest technology.
From cabinetry, custom casework, store display fixtures, custom closet components and more, Kambium has a lengthy record of providing contract component manufacturing and is backed by an experienced team with decades of experience working in this industry. Contact us today to start a conversation about how outsourcing your manufacturing can address your staffing issues and help grow your business.