Lean manufacturing is a term that has gained great exposure during the last 10 years. If you know about Lean, you’ve probably heard about reducing waste of all kinds on factory floors through improved processing efficiencies. What you may not know is that Lean philosophy can be applied to other parts of your operations as well as Supply Chain Management.
A Supply Chain review is a great opportunity to dispose of waste and make processes more efficient. Even if you have a “Leaned Out” factory floor, the Supply Chain provides numerous opportunities for improvement.
Continue reading "Supply Chain Management: Invest in Your Suppliers" »
Recently, I had the opportunity to talk with Dale High, chairman of Lancaster County's High Companies and founder of the S. Dale High Center for Family Business at Elizabethtown College. As we talked, I was amazed at what Dale has done within both the business world and the community. I am honored to highlight him as part of my continuing series of Servant Leaders.
The High Companies offer a broad range of exceptional manufacturing, real estate, construction, and business services and products to companies and is widely recognized for its reputation in customer service, quality products and services, personal and corporate integrity, and beauty in projects affecting the environment.
Continue reading "Dale High: CEO of High Industries" »
Last week the Senate passed a bill called “Cash for Clunkers.” If you have not yet heard of this bill and wonder “could it really mean the government giving cash to people to turn in their clunker car?” You are correct.
The program is designed to offer $3,500 or $4,500 cash rebates to NEW car buyers who turn in older, less fuel-efficient models. The idea being that this will jump-start the car market. The proposed program is limited to $1 billion and expires in October or November.
Continue reading "Cash for Clunkers" »
I recently wrote about the Stimulus Funds and the USDA loan programs. That post created a large amount of feedback and questions, so I thought I would follow up with some changes happening to the SBA (Small Business Administration) program.
In May, the SBA announced a new program called America’s Recovery Capital (ARC) Loan. This interest free loan program is for “Viable Small Businesses” with an “Immediate Financial Hardship.” These loans are funded by banks and are guaranteed by the SBA. The purpose of this loan is to help businesses make periodic principal and interest payments for a 6-month term on outstanding debt that is not past due. The terms include a maximum loan amount of $35,000, 0% interest, a 12-month payment deferment, and a 5-year amortization.
Continue reading "SBA and the ARC (America’s Recovery Capital) Loan Program" »
Due to a lack of succession planning, many businesses dissolve when the founder retires, becomes disabled, or dies. Traditional succession plans include going public, selling to management, or selling to a strategic investor (i.e., one who believes that acquiring the target company will enhance the value of its own business). But going public is not realistic for most closely held or family businesses; managers rarely have the capital to buy the business and strategic investors may not be willing to offer a fair price or payment terms and will often change or eliminate the target company's identity. Another method of business succession planning is creating an ESOP (Employee Stock Ownership Plan) to buy all or part of the business.
Continue reading "ESOP (Employee Stock Ownership Plan): An Excellent Business Succession Strategy" »
Like most states, Pennsylvania is looking at a huge deficit as it prepares its budget for the new fiscal year. Most estimates put this number around $3 billion. That is not a small amount of money to make up and to date many proposed solutions are floating around.
The Senate Republicans have put forth a budget that includes no tax increases but does include a large decrease in spending. The House Democrats have proposed a tax increase to make up the shortfall. What appears to be a compromise that is gaining momentum and supported by Governor Ed Rendell is a temporary 10% increase to the personal income tax rate to 3.37% for three years. There is precedent for this type of one-time increase, as we did a very similar increase in 1983 and 1991.
Continue reading "Pennsylvania Considering Tax Hike?" »
I work with numerous manufacturing and distribution companies and several of them use LIFO (last in first out) to value inventory. President Obama's 2010 Budget lists the repeal of LIFO starting in 2012 as a possible source of funding to finance his proposed universal health care legislation.
Recently the LIFO Coalition members met with members of the Senate Finance Committee and/or their aides and they have expressed the possibility of the repeal of LIFO to be very real.
Continue reading "LIFO Inventory: At Risk to be Repealed" »
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