UK Manufacturers use Interim Managers to Beat the Monkey

UK manufacturers are turning to interim management providers like Aster Interim to help them free up cash and improve

liquidity during the current recession. Many manufacturing companies are reducing their headcount to cut costs, but a

number of others are using interim managers to make their business processes 'leaner' and maximise margins on existing

sales.

Global Market Pressure

The UK manufacturing sector has long been under pressure from global market forces and the recent figures published by

the UK Government would seem to bear this out.

Gross Domestic Product (GDP) contracted by 1.9% in the first quarter of 2009. Output from the production industries fell

by 5.3% compared with a fall of 4.5% in the previous quarter.

These statistics were driven by manufacturing output which fell by 5.5%, leading many manufacturing companies to ask

their staff to accept shorter working hours, pay cuts and even redundancy. This is clear evidence that UK manufacturers

are really suffering in one of the worst recessions, if not the worst on record.

Beating the Cash Monkey

Companies are currently looking for ways to beat the 'cash monkey'. This is a metaphorical term for the lack of liquidity

many companies are suffering from at present, as a result of reduced sales, bad debts, increasing inventories and rising

costs.

All companies know that cash is king and the finances of the indigenous manufacturing sector cannot be helped at present

with the further difficulty of getting loans and extensions to credit facilities. As a result, SMEs and multi-national

OEMS alike need to find other ways to free up cash in their businesses to improve liquidity.

Using Interim Managers

There are two ways to make money from manufacturing: making more with the same resource or making the same with less

resource.

Many companies have chosen exclusively the second option and cut their cloth accordingly by reducing their headcount, but

a number of other manufacturing companies are choosing interim management providers to help them through the worst of the

recession.

The need to increase efficiencies and reduce costs has led to a fillip for interim management providers like Aster

Interim. In particular, those interim managers with experience in change management, business turnaround and using

continuous improvement techniques such as lean and six sigma are finding their services very much in demand at present.

This recession has catapulted interim managers with these skills to the forefront of the recruitment sector. Companies

are on a drive to make their business processes 'leaner' and maximise margins on existing sales. Every effort is being

made to ensure any amount of inefficiency is identified and eliminated.

Lean Business Techniques

By working 'smarter and not harder' many organisations are hoping to last out the recession and come back leaner and

fitter when the economic tide turns. Lean business techniques are being employed companywide from design through to

distribution. Perhaps those organisations with the foresight to improve their business models now rather than doing more

of the same will be the organisations able to steal the march on their competitors when the good times return. Interim

management can be self-financing if the chosen manager succeeds in achieving the set objectives.

Interim Management Assignments

UK manufacturers are looking for interim managers who can complete assignments such as: factory re-layout to minimise

waste, process mapping to reduce non valued added activities, leaning out supply chains to bring about improvements to

lead-times and cash outlays and working to make more business processes more repeatable and capable.

Perhaps interim management maybe one solution to removing the cash monkey from the UK manufacturing sector.

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