ShareTurning turbulence into opportunity: maximize what you’ve got
Published in WoodMaking Network Magazine by Rich Christianson
The Canadian wood manufacturing sector faces one of the toughest economic climates we have seen in many years. Rising costs for raw materials, volatile tariffs, and unpredictable demand have created a perfect storm for wood product companies.
These turbulent times can trigger an assortment of actions by leadership, including:
- Do nothing and wait for things to settle down
- Lower overhead by reducing staff
- Delay capital investments
- Cut prices to be more competitive but with reduced margins
- Charge customers more for their products
- Implement a combination of the above
- Surrender and close down the business
All of these options are short-term fixes, and none will create long-term success and growth – most assuredly shutting down shop.
Let’s add another and more effective option to this menu of choices. While the short-term options listed above may help you successfully navigate the present-day economic challenges and uncertainties, they will not take your company to the next level of efficiency and profitability. Instead, consider transforming your business using a proven effective business transformation methodology called Lean that allows you to do more with what you already have.
Why Lean?
Lean isn’t a fad. It’s a proven business improvement system used by manufacturers worldwide for decades, from automotive giants to small custom shops. At its core, Lean focuses on eliminating waste, optimizing processes, and improving flow -- all without the need to make massive investments in new equipment or technology.
In tough times, Lean becomes even more valuable because it helps you:
- Free up capacity without hiring more people
- Reduce costs without sacrificing quality (increase profits)
- Shorten lead times to keep customers happy
- Lower inventory and working capital
- Open up space for future expansion
- Boost staff morale
- Increase customer satisfaction
Instead of cutting muscle, Lean cuts fat.
The hidden opportunity in tough times
When the economy slows, every dollar counts. Many wood manufacturers unknowingly lose thousands each year to inefficiencies such as:
- Machines sitting idle because of long setups
- Employees waiting for material or instructions
- Excess inventory consuming valuable shop space and tying up cash
- Rework caused by inconsistent processes which also creates scrap
These aren’t small issues; they are silent profit killers. Lean helps you see and fix these problems permanently.
Practical Lean for wood manufacturing
Applying Lean doesn’t mean shutting down your shop for weeks or making huge expenditures on automation. It starts small and gains momentum quickly. Here are a few practical steps:
- Value Stream Mapping: Visualize your entire process to identify bottlenecks and future direction.
- 5S Workplace Organization: Create a cleaner, safer, and more efficient shop floor.
- Quick Changeovers: Reduce machine downtime by streamlining setups.
- Standardize Work: Ensure consistency and reduce rework.
These improvements pay back quickly — often in weeks, not months.
