What do you do if your Automotive Engineering business is struggling to be sustainable and profitable?

Based on my past experience in this field, I can say that we should approach this situation step by step: - Analyze financial health and efficiency. - Address inefficiencies and underperformance. - Develop a strategic plan. - Diversify revenue streams. - Streamline operations and reduce costs. - Review pricing strategies. - Invest in marketing and sales. - Seek external expertise if needed. - Monitor and adjust strategies. - Foster innovation and adaptability.

-Review cash flow and identify areas of improvement. -Evaluate revenue streams for diversification. -Align pricing strategy with the value offered.

To make an Automotive Engineering business sustainable and profitable, it is crucial to optimize operations. This involves reviewing and improving internal processes, reducing costs, increasing efficiency and implementing modern technologies such as integrated systems, automation and data analysis. Furthermore, focusing on sustainable practices, such as using eco-friendly materials and reducing environmental impact, contributes to competitiveness and attractiveness in the market.

Meetings, meetings, meetings. This is the reality of automotive manufacturing, at least as you make your way up the ladder. Critical improvements happen after incidents occur. This is problematic. Paperwork in absence of action means absolutely nothing. The key to efficient and optimized Ops is simple. Go directly to Gemba. It takes one individual on the factory floor pointing out a flaw at many plants to change the entire process and prevent dangerous outcomes. When the boss never goes to Gemba, you end up with a superficial product that lacks engineering integrity. "This doesn't look right", "I don't feel comfortable doing this", these things land on deaf ears when the person in charge doesn't communicate with Ops.

Streamline operations and improve efficiency by identifying and eliminating bottlenecks, reducing waste, and optimizing resource allocation. Consider implementing lean manufacturing principles or investing in technology to automate processes.

To ensure the sustainability and profitability of an Automotive Engineering business, it is essential to adopt a strategy of continuous innovation. This involves the constant development of new technologies, products and services that meet market demands and stand out from the competition, as well as the adoption of innovative internal practices to increase operational efficiency and reduce costs. This approach allows the company to differentiate itself, attract new customers and ensure its long-term success in the automotive market.

Marketing is crucial for showcasing your expertise and attracting new clients. Ensure your brand message clearly communicates the unique benefits of your automotive engineering services. Utilize digital marketing strategies like search engine optimization (SEO) to increase your online visibility. Social media platforms can be powerful tools for engaging with your audience and demonstrating thought leadership. Also, consider attending industry trade shows and networking events to build relationships and stay connected with market trends. A strong marketing approach can significantly boost your business's profile and lead to new opportunities.

The EV space is a totally different beast than traditional automotive manufacturers. LEAN/6 Sigma is commonplace in Toyota, Ford, etc. It doesn't seem that EV manufacturing has quite caught up. EV cars have the benefit of utilizing vastly fewer parts than their combustion counterparts. For this reason, manufacturing can be streamlined, even in absence of such rigid frameworks. Nonetheless, Kaizen methodologies serve numerous practical utilities with regards to how you communicate with others and manage process flow. They should be maintained.

Flexibility and adaptability is key. Meeting the status quo is not enough. Customer is king/queen. I’m reminded of a story about a packaging plant where they spent $50k to automate a process to take empty boxes from the conveyor belt to prevent them from getting shipped without product. After months of iterations and time, they found that the employee in charge left the device turned off at all times. When asked why he explained it was easier to place a fan in front of the belt that blows the empty boxes off of the line. Critical thinking will take you much farther than dumb cash. The EV market is no different. People will throw money at problems that can be solved in 5 minutes by using LEAN 5-why analysis. Learn Gemba Kaizen.