Are you familiar with stories where a large investment fund or group of investors pours enormous amounts of money into the development of a modular factory, only for the company to lose everything and go bankrupt after a few years?
Or, for instance, a small production facility that steadily increased its volumes year after year suddenly disappears one day, and the team of specialists scatters to competitors?
Here's a brief list of reasons for the bankruptcy and downfall of most modular factories.
I hope none of you see anything resembling your own production here:
Or, for instance, a small production facility that steadily increased its volumes year after year suddenly disappears one day, and the team of specialists scatters to competitors?
Here's a brief list of reasons for the bankruptcy and downfall of most modular factories.
I hope none of you see anything resembling your own production here:
- Incorrect project assessment (budget, estimate) before signing the contract;
- Accepting new, more valuable jobs with lower profitability to cover previous losses, maintaining a fictitious factory workload;
- Carrying out a large number of low-profit jobs within limited delivery times, leading to increased overtime payments and material overspending;
- Lack of coordination between contractors and the production team;
- Design errors leading to rework and modifications on the construction site;
- Delays in construction permits;
- Lack of basic construction knowledge among production management;
- Insufficient working capital;
- Decreased efficiency due to lack of sales;
- Creating excessive inventory at the production site;
- Uncontrolled expansion of economic activities;
- Having loans on unfavorable terms;
- Unscrupulous clientele;
- Ultimately, too much funding without a solid business expansion plan!