Optimizing Operations: Risk Management and Human Capital Solutions for Modern Manufacturing
From shop floor to supply chain, we understand the complex risks facing today's manufacturing operations. We’ve created a Financial Impact Report that focuses on aligning your business objectives with Risk Management and Human Capital solutions.
First, we ground our understanding of your business in the context of what is happening today in the wider industry…
Risk Management
The U.S. manufacturing sector is experiencing a contraction, with the Philadelphia Federal Reserve's manufacturing activity gauge falling to -5.5 in November 2024, down from 10.3 in October, indicating worsening conditions.
This marks the second negative reading of the year, with new orders decreasing but remaining positive at 8.9, while the shipments index dropped to 4.5.
Source: MARKETWATCH
2024
2024
Employee Benefits
Manufacturing employment has stabilized, with the labor market showing signs of easing talent and supply chain pressures.
Data from the U.S. Bureau of Labor Statistics indicates that the labor market has continued to stabilize through 2024 as quits, hires, and job openings in manufacturing have steadily declined, and employment has leveled off at around 13 million as production levels have stabilized.
Source: DELOITTE
2024
2024
Insurance
The U.S. manufacturing industry is facing increased risks due to potential policy changes, including proposed tariff hikes and the dismantling of manufacturing tax credits, which could result in significant chaos and sharp price hikes.
President-elect Donald Trump's plans to scrap Joe Biden's manufacturing tax credits and increase tariffs could disrupt manufacturers who rely on imported materials, leading to increased prices and economic slowdown.
Source: FINANCIAL TIMES
2024
2024
Risk Management
The U.S. manufacturing sector continues to experience contraction, maintaining a Purchasing Managers' Index (PMI) of 47.2 in September 2024, marking the sixth consecutive month below the 50 threshold.
Only five of thirteen industries reported growth, with significant declines in inventories and employment, the latter dropping 2.1 points to 43.9%.
Source: MARKETWATCH
2024
2024
Employee Benefits
Manufacturing employment has surpassed pre-pandemic levels and stands close to 13 million as of January 2024.
The number of manufacturing establishments in the United States grew by more than 11% between the first quarter of 2019 and the second quarter of 2023, approaching 393,000 by the end of the period.
Source: DELOITTE
2024
2024
We search for both Visible and Hidden Risks in your operations.
Visible Risks
- Property Damage (Buildings, Equipment, Inventory)
- Product Liability
- Workers' Compensation
- Equipment Breakdown
- Supply Chain Disruption
- Quality Control Issues
Next, we apply our EBITDA Edge framework to your business…
1
Discovery
- Comprehensive operational assessment
- Production flow analysis
- Critical equipment evaluation
- Supply chain vulnerability mapping
- Technology integration review
2
Risk Mitigation
- Custom safety protocols
- Predictive maintenance programs
- Worker safety training
- Supply chain resilience planning
- Cybersecurity protocols
3
Modeling & Analytics
- Production efficiency modeling
- Cost-benefit analysis
- Supply chain optimization
- Energy consumption analysis
- Risk-adjusted ROI calculations
4
Claims Process
- 24/7 incident reporting systems
- Digital documentation protocols
- Product liability response
- Business interruption minimization
- Return-to-operation planning
5
Risk Transfer
- Customized coverage design
- Global program coordination
- Alternative risk financing
- Supply chain insurance solutions
- Cyber risk transfer options
We focus on the business drivers that impact your business…
-
Market diversification strategies
New product development
Technology adoption pathways
Global market access
Strategic partnerships
Vertical integration opportunities
Customer base expansion
Innovation pipeline development
-
Supply chain optimization
Quality management systems
Energy efficiency programs
Workforce development
Technology integration
Regulatory compliance
Environmental sustainability
Process automation
-
Working capital optimization
Equipment financing strategies
Facility expansion planning
Merger & acquisition support
Cost control measures
Productivity enhancement
Asset utilization optimization
Investment prioritization
Lastly, to execute on our goals, we’ve created a suite of world-class tools customized specifically for the manufacturing industry…
Risk Mapping Edge
Comprehensive analysis of manufacturing operations to identify and address unique risk exposures across your entire production process.
- Production line risk assessment and process flow analysis
- Equipment and machinery vulnerability mapping
- Supply chain dependency and disruption analysis
- Quality control process evaluation
- Workplace safety and compliance risk assessment
Risk Insight Edge
Strategic analysis of manufacturing industry trends and emerging opportunities in modern production.
- Industry 4.0 and automation adoption opportunities
- Sustainable manufacturing practices assessment
- Digital transformation and cybersecurity analysis
- Operational efficiency improvement strategies
- Technology integration and obsolescence evaluation
Market Intelligence Edge
Deep understanding of manufacturing insurance markets and rate environments across different coverage lines.
- Property and equipment coverage market analysis
- Product liability insurance trend monitoring
- Global supply chain coverage assessment
- Cyber risk insurance market evaluation
- Environmental liability coverage options
Pricing Edge
Strategic approach to optimizing insurance costs through manufacturing risk quality improvements and market positioning.
- Production safety program development
- Quality control system optimization
- Claims management and mitigation strategies
- Risk retention and transfer analysis
- Total cost of risk optimization