Industrial Sectors and the Changing Economy
Many small and medium sized industries are going global. As we as consumers become more educated on how products are made, they will increasingly be looking for the same quality, and for manufacturers that have a great deal of experience in their particular field, or industries, such as textiles, clothing, shoes, electronics, and so forth. These companies that have local production can provide services at more reasonable prices as well, since there is less shipping involved. If you have been looking to expand your current level of production and service, it may be time to think about moving your manufacturing capabilities closer to where the consumer is located. Many small businesses have the option to purchase their own facilities, and even if they do not have access to their own equipment, they can still easily outsource many of their tasks, saving them money and valuable time. When the economy improves again, the cost of doing business in a down economy will likely go back up, and this will mean it will take even more money and resources to do business.
Smaller industries are always looking for ways to reduce their overhead and operating costs, so that they can continue to provide good service at a price that the consumer can afford. By outsourcing some of their work, the companies that are doing the hiring do not have to cut hours or reduce staff. They just save money by not having to pay health insurance, social security, taxes, and other expenses associated with full-time employees.
Some small businesses are beginning to turn away from hiring employees and turning to contract manufacturers. These are industries that typically have lower start up costs and less of a dependency on one another. For these types of companies, it makes much more sense to contract out the work that needs to be done, rather than hiring someone for an entire season or two. For instance, many construction companies or landscaping companies will often hire a landscape contractor for a few months and then use him or her on an ongoing basis, paying him or her a set amount per job. This allows them to get the best landscape gardener in town at a reasonable rate.