Premium Associate Member Spotlight: Rehmann
This article appeared in the Jan/Feb 2023 issue of MiMfg Magazine. Read the full issue and find past issues online.
In this post-COVID-19 era, manufacturing leaders are facing a variety of new financial, process and development issues. To combat rising costs and supply chain bottlenecks, businesses may benefit from thinking outside the box to maintain growth and stabilize or increase their profitability.
Recognizing ways to battle inflation, analyzing supply chain options and enhancing workforce development and technology opportunities are all important factors to consider, says Tom Shemanski, Director of Manufacturing Services and Fractional CFO Services at Rehmann.
Recognizing these needs, Rehmann, which started as a CPA firm more than 80 years ago, now is a multifaceted advisory firm that helps businesses and high-net-worth families maximize potential. Rehmann partners with over 1,000 manufacturing clients, providing them customized solutions and services. Through the firm’s expertise in business consulting, tax and accounting, auditing, finance solutions, wealth advisory, human resources, technology and more, they’re able to help manufacturers navigate those tricky problem areas mentioned above.
For instance, sudden inflation can dramatically affect a business’ finances. Shemanski explains that companies have struggled to keep up with volume and pace of cost increases. Historically, repricing products for customers could take months. This additional time spent can erode margins and force companies to revamp their repricing processes.
One piece of general advice for any business, what would it be?
Work in the areas of your business that you have deep passion for and prioritize your time for best/highest use. Surround yourself with strong people who complement your work experience.
“It’s definitely a challenge for manufacturers to have really robust costing systems due to this unpredictability,” Shemanski says.
For that reason, being prepared with more thorough costing and inventory evaluation may help, he says.
Another important area to research is the pros and cons of importing vs. exporting. The debate has existed for generations but it has become more significant because of current supply chain bottlenecks. Manufacturing businesses may find projects stalling as they wait for products. However, by reevaluating their processes, they may uncover solutions they had not seen in the past.
“To provide our clients with fresh insights, we may analyze the advantages and disadvantages of bringing production back to the United States, help businesses look at their ERP systems to see how they can react to constant changes in the supply chain, and research alternative sourcing options, whether it’s creating dual suppliers or vertical integrations or even acquiring a supplier to eliminate supply chain risks,” Shemanski says.
Manufacturers that are importing and exporting may need assistance in a variety of additional areas, such as complying with regulatory changes, acquisition policies, registrations, tax structures, identifying local tax credits and reducing overall tax payments.
Shemanski says providing technology solutions could also have an impact on the No. 1 challenge facing manufacturers today — talent. Creating a collaborative and positive work environment through technology can be an effective way to improve a company’s talent acquisition strategy.
Which company value do you associate with the most and why?
Put people first. It’s the core of who we are and how we drive such high employee and client satisfaction. I came to Rehmann because of the great people and leadership here.
Given the current workforce environment, manufacturers face an uphill battle when it comes to talent acquisition. It’s more important than ever to have a comprehensive business strategy to support those efforts.
Rehmann aims to provide innovative solutions through consulting and advisory services to help manufacturers be more resilient in today’s rapid pace of change and ongoing challenges.
Rehmann is an MMA Premium Associate Member and has been an MMA member company since July 2006. Visit online: www.rehmann.com.