As we approach the end of 2023, thoughts inevitably turn to the biggest impacts throughout the year.

In today's global economy, the supply chain is spread out and disjointed, making it difficult for CFOs to get a clear picture of what’s happening and where there might be problems. However, as you prepare for 2024, let’s look back at the top six strategies that may save you money amid disruption.

1. What Manufacturers and Distributors Need to Know about Pay Transparency

The pay transparency movement continues to gain momentum. Several states and municipalities have enacted pay transparency requirements over the past several months. Many more are considering similar legislation as a way to improve pay equity and attract top talent. As a result, forward-thinking manufacturing and distribution companies have a timely opportunity to redefine their compensation philosophy and establish pay transparency as a competitive advantage.

Pay transparency has different levels. For some employers, the term means communicating the company’s pay practices and salary ranges for each role to existing and prospective employees. For others, pay transparency means full transparency around individual salaries within an organization.

The benefits are more than goodwill. Analysis by the job search firm Adzuna shows that job postings that include salary ranges generate six times the number of applicants than those that don’t. Maximizing the business value of pay transparency requires a strategic approach. When implementing or enhancing pay transparency for your company, consider three essential best practices… read more

2. Why You Should Prepare Your Manufacturing or Distribution Company for Acquisition & 5 Steps to Get Started

The annual number of business mergers and acquisitions in the U.S. nearly doubled between 2000 and 2021. While economic challenges have slowed that pace a bit, 20,921 companies still undertook a merger or acquisition in 2022, down from 2021’s record total of 24,899.

In today’s environment, preparing a company to be acquired is a smart business strategy even when a business owner isn’t actively pursuing a sale. Just as business owners strategize how to grow the business or increase profitability, they should also consider potential exit strategies. While an acquisition may not be in a company’s short-term plans, being prepared helps ensure its ability to respond appropriately to an unexpected call from a competitor or investor group. Similarly, taking steps to prepare a business for a possible acquisition is an advantage when navigating management turnover, financing needs or regulatory changes.

A five-step approach can help you define your objectives, identify your risks and value drivers, and, if you decide the timing is right, obtain a purchase offer that benefits you and the business… read more

3. What Manufacturers Need to Know About Expanded Section 48C Tax Incentives

Sustainability initiatives driven by environmental concerns and social changes continue to gain momentum among businesses, investors and consumers. Across industries, nine in ten companies have adopted or are developing formal environmental, social and governance (ESG) strategies. As manufacturing and distribution firms seek to optimize ESG initiatives to drive increased efficiencies and growth, the Inflation Reduction Act (IRA) provides expanded opportunities to earn clean energy tax credits. Beginning in 2023, the IRA’s Section 48C Advanced Energy Credit offers the first round out of $10 billion in investment tax credits aimed at strengthening domestic clean energy manufacturing.

From supply chain sourcing and manufacturing through product distribution, ESG initiatives and metrics play an increasingly important role in investment decisions and business-to-business and consumer purchasing decisions. Sustainability is no longer a niche strategy; it is rapidly becoming the standard for firms to compete and thrive in a complex and evolving marketplace… read more

4. 5 Key Things to Know about Cybersecurity Responsibilities

The average cost of a data breach in the U.S. was $4.35 million in 2022. No matter how you look at it, cybersecurity risk continues to climb. Eight in 10 organizations experienced more than one data breach during 2022. Publicly reported ransomware attacks were down slightly, but the amount of stolen data more than doubled from 2021.

As manufacturing and distribution firms become more reliant on data and technology, the threat of cyberattacks aimed at stealing data and disrupting operations grows. So, what are the appropriate steps to mitigate the risk? How do you keep up with ever-evolving threats? Is your firm in compliance with the latest regulatory requirements? Consider making these five crucial shifts in your approach to cybersecurity… read more

5. Understanding the Consequences of Construction Inflation

Over the past four years, inflation, labor shortages and the increased cost of materials have resulted in historically high construction costs across the United States. These historically higher costs can have a significant impact on property insurance. When looking at your operations, construction inflation can have a number of negative consequences for property owners looking to insure their buildings… read more

6. Business Continuity Planning for Manufacturers & Distributors

Having a business continuity plan is more important than ever. All you have to do is look at the day’s headlines to identify potential risks for business interruption. In recent years, the pandemic, supply chain challenges, data breaches and extreme weather have been top stories. Still, a 2020 survey found that 51% of companies faced the pandemic without a business continuity plan in place.

Putting off continuity planning comes with risk. One in four businesses doesn’t reopen after a disaster, and 90% fail within a year if their operations are shut down for more than five days. So, how can you help ensure your business is prepared for a disruption in operations? Start with the answers to three key questions… read more

These topics remain a concern for manufacturers and distributors. As we approach 2024, our industry experts at CBIZ can help you evaluate your goals. Connect with a member of our team and gain access to more resources here.