How Boeing, Navistar and American Standard manage manufacturing budgets
Staying on budget is one of the most important aspects of any business and there are plenty of manufacturing companies that put their budgets first.
If your business is in need of some budgeting inspiration, it needs to look no further than manufacturers in the United States.
With well-built budgeting in mind, here are a handful of manufacturing companies that really know how to budget.
Manufacturers spending wisely
No matter how large or small, manufacturing companies of all sizes have to keep their budgets on track.
As the government increases taxes and healthcare costs for major U.S. manufacturers, budgetary concerns become even more critical.
Here are just a few ways some manufacturers are dealing with their finances:
- American Standard American Standard Brands is a major manufacturer of toilets, sinks, and other plumbing products. To keep their budgeting on track, the company cuts back on production if and when sales drop from one quarter to the next.
- Superior Products LLC The natural gas fittings and regulators manufacturer Superior Products LLC budgets wisely by keeping track of its exporting practicing. They bulk ship items across seas and hold off on importing supplies until they have a full order, which cuts down on shipping costs.
- Boeing Corporation Even Boeing, manufacturer of commercial airliners, is cutting back in order to stay within budget. Instead of moving forward with their multi-billion dollar 787 Dreamliner project, they are putting it on the backburner until equipment and supplies costs drop.
- Navistar International Navistar International manufactures military trucks and engine parts. Most of their business comes from Department of Defense contracts and, whenever these contracts slow, Navistar pulls back on production in order to keep its budget in the black.
Although your business might not manufacturer airplanes or plumbing parts, there are some lessons you can learn from major manufacturers when it comes to budgeting. From cutting back to keeping an eye on the numbers, a healthy budget is attainable even in this tough economic climate.
As the following article shows, the two most important budgetary tips you should follow are to keep track of your finances with a free budget template and stay vigilant with the numbers. Budgeting with a template is a helpful way to track your expenses and pinpoint financial issues when they arise.
Likewise, staying hyper vigilant of your business's numbers is also crucial.
Budgeting once or twice a week instead of once a month is the best approach to take. When your expenses and earnings are always in the spotlight, you'll have an easier time staying within budget.
Make your budget a reality
From the biggest manufacturers’ to the smallest, run the numbers, see what's possible, and aim for that financial goal. If you're doing better than expected, you can adjust your budget accordingly.
However, if you continuously fail to stay within budget, you need to reassess and possibly make some cutbacks like the major manufacturers above.
When it comes to budgeting, your business can definitely learn a thing of two from many U.S. manufacturing companies.
Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.