Manufacturers serving such retail giants as Wal-Mart or Costco are exposed to severe challenges—not only because of the economies of scale these outlets demand, but also because of the investment required in technology and capital equipment to manage the sheer volume of manufactured goods.
With a weak economy, which usually translates into weak retail sales, these organizations may feel the pinch in a number of areas:
Additional distribution industry challenges:
The point? Lean economic times certainly put pressure on big-box retailers—but on the other hand, they’re in a position to transfer a portion of that pressure to the manufacturer.
So what can you do?
Your turn now. If you’re a manufacturer and already struggling to find ways to survive during this economic downturn, we invite you to weigh in and let us know of your concerns. Comment below, or vote, or both!
It is indeed a scary time for retail and manufacturers alike. One thing our company has implemented to try to help keep costs down is to switch from buying new cartons to buying used boxes. UsedCardboardBoxes.com has been a godsend in that we get the boxes we need to ship our product and it costs less than buying new cartons. For companies looking to save wherever possible, it’s worth a look. Particularly in our case, where we weren’t overly concerned with having new “clean” boxes, just in getting the best price possible. Check them out, UsedCardboardBoxes.com can help your bottom line just as they’re helping ours.