“You can shrink your shop, or you can grow it. But you can’t
stay still.” These were the words spoken at a business coaching
session that our shop went through a few years ago.
At first, our production manager and I thought the coach was
joking. We thought we had it all figured out at our shop. The
workload was pretty even and we had a good, stable staff in place.
The machinery had been updated, and we’d embraced new software and
technology. Give us a break, we thought. More change?
Then, things started to happen: the outrage and tragedy of
September 11, 2001; an economy in a downturn; spiralling insurance
costs; more challenges, more change.
We realized we needed to stay as flexible as possible to deal
with all of these transformations. We began to look at our
operation from a different perspective the ability to expand and
shrink more easily.
Office Cost-Cutting
I recommend taking a new
look at your operation. For example, many shops have brochures of
their work printed ones that show what they do, complete with
glossy photographs and references. We did it for years. It’s great,
but it’s expensive and a pretty static way of showcasing your
work.
Try some changes. A Web site has become a very accepted place to
illustrate what it is that you do. And, depending upon where you’re
located, you may find your clients actually prefer checking you out
online, from their own home; they don’t have to come to your
showroom or place of business. What’s more, you can change the
content of your Web site a lot more easily than a pile of printed
brochures or postcards.
You may want to consider creating personalized brochures, where
you tailor-make each one depending upon the potential customer’s
needs. You could scan photos of your work into your PC and use a
basic publishing program to create a simple page or more of shots
and some brief text. A $150 printer will produce decent copies (if
you use the right paper).
While these approaches require a little more set-up, once in
place, they may be easier and cheaper to try. Plus, they can give
you more flexibility to change as needed.
In pre-production and at the office, my advice is to keep it
lean. Computerizing your shop drawings, layout and cutlisting can
help, but be aware of the learning curves both in the office and on
the shop floor with this. It’s fair to say that the shops that have
embraced CAD (computer-aided drawing) are more equipped to deal
with changes to field conditions, architects’ corrections, etc.
Against the down side of finding people who are skilled at this
work are the advantages of speed, consistency and accuracy. You can
draw and detail more with fewer people.
You might want to consider subcontracting some of this work,
too. Your shop may be more at the mercy of a particular detailer’s
availability, but you won’t have to maintain that constant payroll
burden.
In your office, try to outsource certain activities payroll for
instance. Many shops, especially small operations with less than
five employees, find that outsourcing for this service can free up
office management. Larger operations can also outsource tasks such
as human resources and financial analysis, among others.
Shop Changes
On the shop floor, it all begins with machinery. The constant
demand for “faster, better, cheaper” is here to stay, I’m afraid,
so get used to it.
You need to focus on the three core machines of the modern
cabinet shop: the saw, the edgebander and the drill/router These
are where you can now make or lose money.
A beam saw used to cost a small fortune, but it’s more
affordable now and it can cut an awesome amount of parts quickly
and accurately. Yes, it takes up more space than a regular saw, but
it can save your shop lots of time. With one operator and a trained
back-up person, it can give your shop the flexibility to cut fast
as the need arises.
A good edgebander may also not run constantly, but when it does,
it will give you the speed you need. If you can build this
adaptability into your shop, you’ll have a better chance of dealing
effectively with change.
Buying a point-to-point machine, or a router, is arguable. Here,
too, you may find that, if your shop reaches 10 or more employees,
this type of equipment is very justifiable. It, too, is fast and
accurate, and has that built-in repeatability factor.
Consider outsourcing, too. Look at door and drawer
manufacturers. They’ve come a long way in the last few years, and,
in general, are very motivated to look at new cabinet shop
accounts, since they want to be operating at full capacity.
You may also want to look at subcontracting other tasks. Today,
many shops are not doing finishing and painting themselves. Others
are looking at delivery companies to ship the work. Some of these
firms have warehouse space available, as well.
Some shops also hire outside installation firms to install their
work. Care is needed here, as it’s your shop’s name on the work.
Know with whom you’re dealing.
Your physical plant is worth questioning, as well. Do you have
too much space? Could you rent out storage more cheaply or on an
as-needed basis only? Are you over-improving your shop with
fixtures or storage racks that could be purchased for less? How
flexible is your lease?
The last area to examine is often the most difficult: dealing
with changes on a staff level. You need to look at who and how to
hire and fire, which jobs to take and decline. There are no easy
answers here. Sometimes your shop will keep people around too long
in the hope that the workload will improve. After all, you know how
hard it is to find good employees.
There may be other times when you may have to take on projects
at a lower price point to pay the overhead that you have in place.
Here, you need to ask the question: “Is some work better than
none?”
I also recommend getting out of the shop for an afternoon on a
regular basis. Go to the woods, the beach, the lake, etc., and
relax for a while. That way, you’ll be better prepared to embrace
those changes that will continue to come at you every single
day.