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Keep Your Manufacturing Business Safe And Productive

Keep Your Manufacturing Business Safe And Productive

The reason that many manufacturing facilities fail to reach their maximum productivity level is their lack of understanding that productivity and safety are dependent on each other. Putting a risk management strategy in place and having appropriate manufacturing insurance will result in their keeping safety incidents to a minimum and having financial coverage when incidents do occur.

Creating an Effective Risk Management Strategy

Just as different manufacturing businesses operate differently, they also have a different approach to risk management. Those who have successfully implemented risk management into their operation to make it more productive and safe are likely to start by assessing the likelihood of diverse events for assets and operating procedures and then continue with assessing the impact of these adverse events. Next, they will rank the risk for adverse events in these areas and then create a closed loop process to mitigate the risk in each area. This basic structure incorporates identification, quantification and mitigation.

Backing up Your Strategy with Manufacturing Insurance

Nearly every manufacturer needs insurance regardless of the products they make. There are laws imposed on the need for manufacturers to carry insurance that may vary on a state-by-state level. Even in those situations where the rules and regulations are limited, manufacturers should consider their risk potential when determine the degree of manufacturing insurance they need to protect them. Insurance can cover the cost of equipment repairs and replacement, damage to the facilities, or for medical liability in case employees are injured on the job.

General liability is a type of insurance that protects the manufacturer when an injury takes place on their property and they are found to be at fault. Lawsuits can be devastating to your business if you do not have the protection you need to cover any losses that may be awarded. General liability should be the basic part of your coverage that is included in addition to that which applies to your specific risks.

Value of Insurance Your Business

When accidents occur, it can have an impact on your manufacturing business at any level. Loss of equipment or employees can lead to downtime that has a significant impact on your bottom line. Lawsuits or excessive damage to the facility could cause you to lose your business altogether. Understanding your risk and having the manufacturing insurance to cover your losses can often be the difference between a business that fails and one that is both safe and productive.

Find a Manufacturer Online

Find a Manufacturer Online

Forums – Try searching forums where people are discussing their experiences in working with manufacturers. You might be able to generate some leads that way in finding a manufacturer to produce your product.

Make Sure You Start Small – One of the most important things to know before you start working with a manufacturer is that trust must be there, especially if you are working with a foreign manufacturer and are not protected by US laws. The best way to establish that in the beginning is to start small. First, start by requesting a sample. Maybe the manufacturer will require you to pay for the sample and maybe they won’t, but even if you lose that money, it won’t be anywhere near as devastating as losing thousands on products that were never received or that were defective. Start with small product orders until you have established trust with your manufacturer.

Post Your Job on a Manufacturers Platform – There are a few sites who offer a platform where you can post your job and receive bids or contact information of manufacturers who are interested. This is another way to narrow down your search with less time invested. However, some of these services can be very expensive.

Directories and Lists – There are many directories and lists of manufacturers. Many of them hold contract information on 1000’s of different manufacturers. The difficult part about finding a manufacturer this way is that you literally would need to email, or fill out a contact form for hundreds of manufacturers before you found one that would respond to you with interest in producing your product. Also, many manufacturers have high volume limits. For example, they typically don’t like to produce products in the hundreds, they want to produce in the 1000’s or tens of thousands.