This is article is part of a series of monthly articles produced by Harbour Results for PMA’s MetalForming Business Edge e-newsletter. Click here to view the full collection of articles.

Well-led businesses tend to be more productive, competitive and responsive to change. Their employees have a clearer vision of where they are headed and why and are therefore more engaged and motivated. Managing all the uncertainty in the marketplace and being a top performer starts with leadership.

But, what does good leadership mean? Or, better yet, what does good leadership in manufacturing mean? The role of leadership in manufacturing has evolved. Today, leaders not only need to make sound business decisions, they must navigate an increasingly challenging and fast-paced supply chain, understand and manage tariffs and trade agreements, anticipate technological transformation and attract and retain the next generation workforce.

Time has changed and, maybe now more than ever, leadership is a critical component to a metalformers business success.

Harbour Results has an assessment program (SAP) where it reviews and rates all aspects of an organization’s operation and business. The company has conducted 75 assessments since 2020 and the data shows that the companies with the highest overall score aerate a 62 (out of 100) in leadership and management compared to an average of 48 for bottom performers.

Good leaders challenge everything. They are not satisfied with status quo but push to identify and implement improvement across the facility to drive efficiency and flexibility – the holy grail of manufacturing. But, it doesn’t stop there. Manufacturing leaders need to build trust among their workforce. They need to build a culture around teamwork, accountability and continuous improvement. They should be empowered to voice their opinions, make decisions and problem solve. And, this can only be accomplished through continuous and ongoing communication – from town halls to small group meetings to individual discussions, regardless of the size of your organization, communication is paramount. With labor challenges its important to understand how each person is motivated and then feed into that motivation in order to retain them long term.

 Additionally, good leaders are visible. They are on the shop floor seeing first-hand what’s working and what isn’t and planning to fix the inefficiencies or inaccuracies – go see; go act. Leaders are making sure quality and safety are top priorities across the shop floor and with each and every employee.

 Good leadership isn’t an easy task. Leaders need to stay motivated and take time to build strategies and implement change that will drive business success. If they don't stay motivated, how will they motivate their team?

 And, they need to ask their team tough questions – Why? Is that the right thing to do? How do we drive waste out of that process? Can we do it better? – will they deliver the results they expect to achieve and hold the entire team accountable.

The near term will continue to be challenging for the manufacturing industry with inflation impacting some durable good demand and the continued threat of supply chain constraints. For the next 18 months leaders need to focus on a few key things:

1. Know Your Market Intel – How is the economy impacting the markets you serve and how will that impact your business?

2. Understand Your Customer Needs – What solutions will your customer need and are you able to meet their need?

3. Develop Your Team – Talent will continue to be a challenge. Cross-train your team and build your employees’ skill sets.

4. Focus on Leadtime Reduction – Take the time now to identify how can you be more efficient.

5. Build Flexibility and Resilience – Better prepare your company for the highs and the lows that frequently impact manufacturing.

6. Hunker Down Financially and Be Smart.