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4 ways to take advantage of modern manufacturing trends

(BUSINESS MARKETING) Big companies are in a bit of a bind currently with ongoing trade issues and environmental impact, so wouldn’t local manufacturers be the way to go?

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A lot of trends are impacting the world economy and the manufacturing sector in 2020. We don’t always get to choose our circumstances, but we do choose how we react to them.

The following is a rundown of the four biggest trends affecting manufacturers today. Knowing how to meet these challenges — and when a problem is an opportunity in disguise — could be the key to survival in increasingly competitive markets.

Here’s how companies can weather ongoing and future changes and come out the other side stronger than ever.

1. Domestic Sourcing and Manufacturing

Multiple reasons exist for why domestic sourcing and manufacturing are trending right now in the United States. One is the environment — shorter supply chains lead to smaller carbon footprints. Another is ongoing trade tensions making international freight more complicated than it needs to be.
To figure out if switching to domestic sourcing of materials and local manufacturing makes sense, businesses have some questions to ask themselves. Domestic production is making a comeback because of higher buyer control and potentially lower costs. However, determining real-world ROI is more complicated. It requires an understanding of factors such as:

  • How large is a typical run for your company? Overseas manufacturers often require larger batches. This process, in turn, requires the storage of more inventory than you might want.
  • Is the product light or heavy? Transporting cumbersome items over a distance is more resource- and labor-intensive than shipping smaller ones.
  • How much collaboration do you require with your suppliers and manufacturing partners? Speaking the same language and having the option to visit a factory are major advantages.

2. Additive Manufacturing (3D Printing)

Additive manufacturing has the potential to change the game for small and large companies completely. The ability to quickly prototype new product designs or fabricate replacement parts in-house is exceptionally enticing for manufacturers. However, these are just a hint of the advantages.

Research points to a potential 41 to 74% energy savings for 3D printing compared to traditional large-scale manufacturing techniques, such as injection molding. Manufacturers that incorporate 3D printing into their operations may also reduce waste and improve productivity and efficiency.

Not every company produces the types of consumer goods for which 3D printers are best suited. Several questions should come up before adopting additive manufacturing, including whether 3D printing-based “manufacturing-as-a-service” is a better way forward.

Is the part highly complex? Does it require post-processing? Current 3D printers don’t always play well with highly convoluted shapes and may require post-processing that would occur in CNC machining anyway. How much assembly is required? It may be tempting to 3D-print one consolidated part instead of assembling five separately machined ones. However, 3D printing large pieces can be much more expensive than manufacturing them separately and assembling after.

Is the company not yet ready to purchase a 3D printer? Manufacturing-as-a-service could be the path forward for many companies that lack capital but not creative vision. Rolls-Royce was one of the first to offer industrial services on a per-use basis, but 3D printing is revolutionizing the concept thanks to collaboration tools, such as the easy exchange of digital blueprints.

3. The Industrial Internet of Things

The Industrial Internet of Things, or IIoT, is bringing smart manufacturing to the masses. Smart manufacturing refers to networks of digital and physical systems that make industrial data available anywhere and anytime it’s needed.

Many examples exist of how the IIoT delivers value to manufacturers. These instances include gathering equipment data in real-time to spot trouble and avoid downtime, tool monitoring to maximize product quality and consistency and the means to track and reduce energy usage across a facility or supply chain.

Choosing and implementing the right connected equipment and IIoT products isn’t always straightforward. It requires close attention to factors. Compatibility and interference, for instance, bring new connected devices onto the factory floor and require input from engineers who understand how different devices connect as well as how they can interfere with one another. LCD screens are standard in human-machine interfaces, but choosing low-quality components can introduce interference and other unpredictable behavior.

Physical and cybersecurity is also a point of concern. Not every IoT vendor takes safety seriously. Connected factory equipment requires new levels of training and vigilance. Physical assets should have reliable access controls to avoid purposeful or accidental tampering. Plus, all data transmitted off-site should be encrypted first.

4. The Skilled Labor Shortage

Estimates claim that around 2.4 million skilled and semi-skilled manufacturing positions could remain unfilled by 2028. This trend will continue to impact companies throughout the coming years if they don’t figure out how to turn the situation to their advantage.

If manufacturers find their way back to the apprenticeship model and other forms of onsite training, they can attract not just potential talent, but engaged expertise. Studies show that workers are likelier to stay with companies that invest in their development.

Manufacturers can also set themselves apart from the competition in the eyes of job-seekers by working closely with universities and trade schools. This strategy could open the door to students earning credits and degrees onsite instead of in classrooms. Jim Nelson, a VP at the Illinois Manufacturers’ Association, says, “Every job should have a pathway to a bachelor’s degree. But not every job starts there.”

Plus, smart automation on the factory floor can pick up the slack during downturns in talent availability without displacing existing workers. Robotic inspections outperform human inspectors while allowing management to lift employees into more rewarding, more challenging, less repetitive positions.

Manufacturing in Flux in the Wake of New Trends

More than ever, success in manufacturing requires a careful balance of humanity, culture and technology. Companies with the right approach can benefit from these positive trends and learn to see the less-favorable ones as opportunities for reinvention.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

Business Marketing

The secret to crafting consistently high-converting emails?

(BUSINESS MARKETING) Email may seem too old to be effective but surprisingly it’s not, so how can you get the most out of your email marketing? Try these tips.

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Email marketing

Email marketing might seem archaic in comparison to modern mediums like social media, blogging, and podcasting; however, it actually remains one of the highest converting options marketers and small businesses have at their disposal.

But Why Email?

Hopefully you believe in email as an effective marketing channel, but in case you have doubts, let’s hit the reset button. Here’s why email marketing is worth investing in:

  • Email is one of the few marketing channels that you have total control over. Unlike a social media audience, which can disappear if the platform decides you violate their terms, you own your email list.
  • Email is considered very personal. When someone gives you access to their inbox, they’re telling you that you can send them messages.
  • From a pure analytics perspective, email gives you the ability to track behaviors, study what works, and get familiar with the techniques that don’t.
  • The ROI of email marketing is incredibly high. It can deliver as much as $44 in value for every $1 spent.

5 Tips for High-Converting Emails

If you’ve been using email, but haven’t gotten the results you’d like to, it’s probably because you’re using it ineffectively.

Here are a few very practical tips for high-converting emails that generate results:

  1. Write Better Subject Lines

    Think about email marketing from the side of the recipient. (Considering that you probably receive hundreds of emails per week, this isn’t hard to do.) What’s going to make you engage with an email? It’s the subject line, right?

    If you’re going to focus a large portion of your time and energy on one element of email marketing, subject lines should be it.

    The best subject lines are the ones that convey a sense of urgency or curiosity, present an offer, personalize to the recipient, are relevant and timely, feature name recognition, or reference cool stories.

  2. Nail the Intro

    Never take for granted the fact that someone will open your email, and read to the second paragraph. Some will – but most will scan the first couple of lines, and then make a decision on how to proceed.

    It’s critically important that you get the intro right. You have maybe five seconds to hook people in, and get them excited. This is not a time to slowly build up. Give your best stuff away first!

  3. Use Video

    Email might be personal, but individual emails aren’t necessarily viewed as special. That’s because people get so many of them on a daily basis.

    According to Blue Water Marketing, “The average person receives more than 84 emails each day! So how do you separate your emails from everyone else? Embed videos in your emails can increase your conversion rates by over 21 percent!”

    This speaks to a larger trend of making emails visually stimulating. The more you use compelling visuals, the more engaging and memorable the content will be.

  4. Keep Eyes Moving

    The goal is to keep people engaging with your email content throughout. While it’ll inevitably happen with a certain percentage of recipients, you want to prevent people from dropping off as they read.

    One of the best ways to keep sustained engagement is to keep eyes effortlessly moving down the page with short and succinct copy.

    One-liners, small paragraphs, and lots of spacing signal a degree of approachability and simplicity. Use this style as much as you can.

  5. Don’t Ask Too Much

    It can be difficult to convey everything you want to say in a single email, but it’s important that you stay as focused as possible – particularly when it comes to CTAs and requests.

    Always stick to one CTA per email. Never ask multiple questions or present different offers. (It’ll just overwhelm and confuse.) You can present the same CTA in multiple places – like at the beginning, middle, and end of the email – but it needs to be the same call. That’s how you keep people focused and on-task.

Give Your Email Marketing Strategy a Makeover

Most businesses have some sort of email lists. Few businesses leverage these lists as well as they should. Hopefully this article has provided you with some practical and actionable tips that can be used to boost engagement and produce more conversions. Give them a try and see what sticks.

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Business Marketing

Restaurant chains are using COVID to masquerade as indie food pop ups

(BUSINESS MARKETING) Applebee’s and Chuck E. Cheese appear on delivery apps under aliases. Is this a shifty marketing scheme or a legitimate practice?

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chuck e cheese pizza

Restaurants have pivoted hard to stay alive during dine-in shutdowns due to the coronavirus pandemic. Some are selling grocery items like eggs, flour, and yeast (check out the pantry section at the Brewtorium!) while others have created meal kits so families can cook up their restaurant favorites at home.

Meanwhile, a few large chains have been busted for re-branding their kitchens to sell more meals. A reddit user in Philadelphia reported that they ordered pizza from Pasqually’s Pizza & Wings thinking it was a local business they had yet to try, only to learn it shared a kitchen with Chuck E. Cheese. As it turns out, Pasqually is a member of Munch’s Make Believe Band, the terrifying mascot band led by murine bad body Chuck E. Cheese. Pasqually is the confusingly human drummer (and Italian pizza chef?), joined by lead canine guitarist Jasper T. Jowls, sweetheart chicken Helen Henny on the tambourine and vocals, and the dinosaur? Closet monster? D-list muppet? Mr. Munch on the keys.

Though this inter-species band should be disturbing enough for us all to rethink our childhood memories of Chuck E. Cheese (let’s be honest, Disney World should be the only place allowed to have adults parading around in giant mouse costumes) what’s more upsetting is the competition it creates with locally owned restaurants. In West Philadelphia, there is another restaurant called Pasqually’s Pizza.

Chuck E. Cheese is not the only restaurant re-branding to save their hides. Applebee’s has launched a “brand extension” called Neighborhood Wings. Customers can order larger quantities of wings (up to 60!) from Neighborhood Wings, but not Applebee’s. You know, for all of the large parties people have been hosting lately (thanks COVID-19).

This restaurant run-around is further evidence of the noise created by third party delivery apps. GrubHub, Postmates, and others have been criticized for taking huge commissions from already low-margin restaurants, and providing little added value to profitability and industry worker wages. Using these platforms as a means to build shell restaurants for large national chains is just another example of third party apps doing a disservice to both its clients and customers.

Of course, Applebee’s and Chuck E. Cheese are franchises. If one wanted to go out on a limb for these brands, it could be argued that they are indeed ‘local’ businesses if their owners are local franchisees. The third party apps are simply another platform for businesses to gain a competitive edge against one another within a specific customer segment. Furthermore, consumers should hold themselves accountable for their patronage choices and doing their due diligence when investigating new pizza and wings options.

Nonetheless, it behooves all of us in this pandemic to get to know our neighbors, and build relationships with the small businesses that are the lifeblood of a community. Restaurants exist thanks to local customers. Try placing your order directly on their website, or give them a call. I am a restaurant worker, and I truly am happy to take your order.

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Business Marketing

Restaurants might actually lose money through Grubhub and similar services

(BUSINESS MARKETING) Restaurant owners are asking themselves if third-party food delivery apps are nothing more than a good, old-fashioned shakedown.

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If you haven’t seen the GrubHub receipt that has everyone outraged, you probably should. It exposed the food delivery apps for their unreasonably high commissions and excessive charges to the restaurants (on top of the changes to the consumer).

Many people, in an honest attempt to support local restaurants while staying home and safe these days, have started ordering out from their favorite small, local eateries. And they should! This could be the lifeline that allows those restaurants to survive being closed for upwards of a month. However, if they order through a third-party food delivery service, they need to know that a good chunk of their money goes to the service, not the local business. Plus they are paying extra for the service.

It’s a big bummer, to say the least, a bamboozle some might say. Why would restaurants agree to use these services at all, then, if they aren’t beneficial? Well, they initially served the purpose of helping smaller restaurants and food trucks sell to a wider customer base without having to incur the cost and manage the logistics of offering delivery. Not all of the charges are immediately apparent, either, although I am sure they are in the business agreement.

GrubHub, DoorDash, Postmates, UberEats all charge eateries a commission between 15%-30% to even work with them. This is for the most basic level of service. When GrubHub, for example, wants to stimulate more sales, they may offer a deal to consumers. This could be a dollar amount or percentage off of a customer’s order or free delivery.

Everybody loves a deal, so these promotions are effective. They drive more sales, yay. The restaurants, however, incur the full cost of the promotion. You would imagine GrubHub would share that cost, but no, they don’t. If that weren’t unscrupulous enough, GrubHub then charges the business the commission on the full, not discounted, price of the order. Unctuous, right?

Sure, restaurants have to opt in for these specials and other promotions the third-party apps are marketing, so they know there’s a fee. Yet, if they don’t opt in, they won’t appear as an option for the deal in the app. It’s deceptive, feels like a bit of extortion to me. All of these delivery apps have some sort of similar way to rack up fees. For a mom-and-pop food truck or restaurant, the commissions and fees soon eat away at the already small profit margins restaurants usually have.

It’s simply wrong, so wrong. But wait, there’s more! Another nasty, duplicitous practice GrubHub (specifically GrubHub) has implemented, with Yelp’s help, is to hijack the restaurant’s phone number on Yelp. This means if you look up your favorite restaurant on Yelp, and call in an order from the Yelp platform, your call will actually go to GrubHub instead. And get this–they charge the restaurant even if you pick up the order yourself, not only for delivery.

These third-party companies have even started buying up domain names similar to the restaurants to further fool patrons into ordering through them. They also have added restaurants to their platforms, even if the restaurants haven’t agreed to work with them. They seem willing to do anything to get a cut of restaurants’ hard earned dough (and ours). Loathsome! How are these scams even legal?

It happened to me recently. I kept trying to order for pickup at the restaurant, but somehow the order kept going through GrubHub. Bamboozled!

RVB bamboozled

This boils my blood and breaks my heart for these restaurants. In my other life, I am a blogger for a hyperlocal blog whose sole purpose is to highlight, celebrate, and promote local everything. I’m also the internal marketing chair for the Austin Food Blogger Alliance, where we work with local restaurants, distilleries, breweries, and such to promote them and help raise their visibility in the community.

I only bring this up, because I’ve sat with these restaurant and food truck owners, listened to their stories, seen the fire in their eyes as they talk about their recipes. They’ve regaled me with stories of how they got started, what inspires them, and when they had their first successful day. It’s delightful to see the intensity of their enthusiasm for sharing good food with people and how much of themselves they put into their restaurants.

In the original post that lifted the curtain on this shady practice, the Chicago Pizza Boss food truck owner Giuseppe Badalamenti, says the money he got from his GrubHub orders was “almost enough to pay for the food.” Badalamenti had participated in some promotions, which admittedly reduced his cut dramatically, yet the whole premise came as a shock to customers who have been spending their dollars to keep these local businesses afloat. Then here comes the third-party apps, poking a hole in the floaties.

It comes across as downright predatory. Thousands of people have sworn off these apps in favor of calling the restaurant directly for pickup if you are able. This way, you ensure the business you want to support gets the full bill amount. You can get the restaurant’s number directly from Google Maps or the business’s social media or website. This is the best way to help your favorite places stay in business.

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