The manufacturing industry in Australia is experiencing positive times. The sector expanded in November, albeit very slightly, climbing 0.7 points to 50.1.
The new numbers, which came from the Australian Industry Group’s (AIG) performance of manufacturing index (PMI), indicates expansion within the sector. A reading below 50 is considered a contraction.
Sales, new orders, and deliveries, as well as the lowering Australian dollar all help improved despite firms complaining about the intense import industry. This positive outlook surrounding the manufacturing business provides a great opportunity for you to expand your operations if you’re in the same sector.
Here are the key metrics you should take a look at to help grow your manufacturing business:
1. Sales Revenue
Even if your sales numbers are up, it won’t really mean much if you’re not making money. One important thing to look at is if you’re taking in revenue after considering sales and overhead expenses.
Knowing and understanding your company’s Asset Turnover Ratio, Return on Assets, and Return on Sales will help tell if your organisation is in the same league as others in the same industry or location.
2. Operating Productivity
Having an idea of how your employees are doing can help you truly understand the inner workings of your company. Any discontent from the staff can affect operations negatively, while on the other hand, high employee productivity can become a great asset.
Mainpac.com.au, a leading provider of asset management and maintenance solutions in Australia, encourages having a reliable asset management system in place. This helps streamline your plant’s operations, as it provides strategies on how you can make the most of your assets. Use the operating productivity metrics to find out which department needs improvement and which are doing fine.
3. Customer Loyalty and Retention
Build customer loyalty by treating clients the way they want to be treated. It’s all about attracting the right customers, getting them to purchase from you, buy often and in higher quantities, and have them bring in other customers.
Even the smallest improvement in customer loyalty and retention metrics can do a lot in boosting your operations and load.
There’s a level of discipline, knowledge, and skill needed to thrive in the manufacturing industry. The key is to know and analyse the numbers concerning your operations. This will be important factors to help you make well-informed decisions.