A good time to buy a manufacturing business
The manufacturing sector has shown some good growth over the last 18 month. Some great Manufacturing Business opportunities are up for sale, but you still need to do your homework.
While this sector had some difficult times during the economic downturn, we are now seeing some strong businesses emerge. Many manufacturing businesses have had to streamline their processes, re-focus and reduce costs just to survive, and are now reaping the benefits for their efforts.
Recent reports show New Zealand manufacturing activity has now expanded for the 18th straight month in February, with signs the buoyant economy is creating jobs. "The latest index suggests the manufacturing sector's upswing remains well in force into the early stages of this year" says the BNZ - Business NZ.
"Niche manufacturing businesses are popular and don't hang around long" states Richard O’Brien, Director of NZ Business for Sale website nzbizbuysell.co.nz, “If you're a smart operator, understand your market and specialise in your niche, there’s no reason you shouldn’t do well.”
While manufacturing has a number risks from being capital intense and high in people management it can also be very rewarding.
When looking at Manufacturing Business for Sale opportunities its important to; understand the business and the market. Know what’s needed for the business to work including; knowledge, skills, plant, patents, recipes, customer lists etc. as these will be needed for production and sales. It also pays to have some cash reserves to cover machinery break-downs, technology changes, lost contracts, or a slowing market. Where possible minimise the risks; use sub-contractors or lease plant. Consider what research and development you will need to invest in to keep ahead of the game.
Manufacturing is mostly about coordinating people, plant and resources to make things. Efficiency, focus and knowing your market are key in creating a thriving manufacturing business. By choosing a business you are passionate about and seeking sound advice, your new purchase should continue to flourish in this all-important sector.
For more information on Manufacturing Businesses for Sale check out www.nzbizbuysell.co.nz