Top 6 Business Tips for Manufacturing Companies in Industrial Parks in 2024
2024 is expected to provide both opportunities and challenges to the rapidly changing manufacturing and distribution sector. To stay ahead of the curve, businesses need to use innovation and resilience to navigate through economic uncertainty, workforce shortages, and supply chain disruptions. In the upcoming year, 88% of business executives are confident about higher sales, per a survey conducted by the Association for Advancing Automation. To help manufacturing businesses thrive, here are six strategic tips for 2024:
1. Enhanced Supply Chain Management for Resilience: Despite a decrease in supply chain disruptions, industry leaders are focused on strategic transformation to improve resilience and transparency. Investments in digital technology, analytics, and AI are crucial for automating processes, identifying bottlenecks, and enhancing end-to-end visibility. In 2024, manufacturing businesses are expected to continue prioritizing supply chain improvements for long-term success.
2. Strategic Mergers and Acquisitions Preparation: Following a slowdown in 2023, there is an anticipated uptick in M&A activity in 2024. Businesses are advised to prepare for possible acquisitions, even if not actively pursuing a sale, to respond effectively to unexpected opportunities. This strategic preparation helps navigate management turnover, financing needs, and regulatory changes, positioning companies for long-term success amid technology transformation.
3. Comprehensive Cybersecurity Measures: With manufacturing and distribution becoming prime targets for cyberattacks, cybersecurity must be a top priority. Beyond addressing information technology (IT), a comprehensive risk assessment should extend to operational technology (OT). Manufacturers are encouraged to integrate OT into their cybersecurity plans, assess vulnerabilities, and enhance collaboration between IT and OT teams to mitigate risks effectively.
4. Optimizing Tax Incentives for Significant Savings: In 2024, businesses can capitalize on tax incentives for significant savings. Exploring opportunities such as the expanded Advanced Energy Credit (Section 48C), forming an IC-DISC for tax savings on international sales, and utilizing bonus depreciation for qualifying assets can contribute to maximizing tax benefits. These strategies are essential for enhancing financial outcomes in the manufacturing sector.
5. Addressing the Tight Labor Market: The tight labor market remains a significant challenge for manufacturers in 2024. Short-term strategies like increased wages have shown results, with a decrease in voluntary employee separations. However, businesses must also invest in long-term solutions by collaborating on educational programs with schools and colleges to grow the skilled workforce. Upskilling and reskilling efforts are crucial for meeting the demands of roles requiring advanced digital skills.
6. Leveraging Economic Zones like Dawa: Dawa Industrial Zone positions itself as a gateway for businesses seeking growth and expansion in the region. This zone offers a compelling proposition for manufacturers looking to establish a presence in West Africa with its strategic location, state-of-the-art infrastructure, and supportive regulatory environment, boasting excellent connectivity, skilled labor availability, and a business-friendly ecosystem.
Manufacturing companies in industrial parks can take advantage of these tactical opportunities to position themselves for long-term success and overcome obstacles as they confront the challenges and opportunities of 2024. Businesses may prosper and help industrial zones expand globally by embracing innovation, resilience, and a proactive attitude to industry developments.