Manufacturing companies are a fundamental driver of our nation’s economy. Although many manufacturers were hit hard by the Great recession, the manufacturing sector remains optimistic about future growth and overall profitability.
Even with a slowly growing economy, manufacturing companies still face unique internal and external challenges that can hamper their growth and make day-to-day operations difficult, expensive or simply frustrating.
The following challenges are cited most often by manufacturing managers and executives:
- Rising cost of raw materials
- Global competition
- Transportation costs
- Supply of skilled/qualified labor
- Labor costs
- Rising cost of health insurance
- Costs to update equipment
- Government regulations
- Tax burdens
- Balancing supply and demand
- Effectively planning for transitions
- Continuous improvement initiatives
- Customer diversification
- New product development
Interestingly enough, 75% of the issues listed deal with cost and finance concerns. A growing percentage of these manufacturers rely on invoice factoring companies to minimize their top challenges and grow their businesses.
Invoice factoring companies like Universal Funding, are able to offer quick approval and fast funding. Accounts receivable financing is the fastest way for manufacturing companies to address their cost concerns.
Universal Funding is a nationwide invoice factoring solutions leader, supporting growth focused businesses with scalable factoring solutions. With its invoice factoring, payroll funding, and purchase order financing services, Universal provides clients with the necessary capital needed to grow and support their businesses without taking on new debt.
While many manufacturers benefit from using accounts receivable financing, there are other peripheral service providers tied to manufacturing that also benefit when engaged in this financing method. Essentially the entire supply chain from materials suppliers, transportation companies, distribution companies, and staffing companies that provide essential services for manufacturers, can equally benefit by engaging with Universal Funding for cash flow solutions. For more information, please fill out a rate form or call us at 1-(800) 405-6035.