Factors to consider when starting a manufacturing industry


Starting your own business can be both exciting and scary since you don’t know what to expect, or how the company will fair in the market.

While many companies are quite easy to start, the manufacturing industry is challenging. This is because, the costs involved, the processes and the nature of the goods produced are all expected to be of the best standards.

Various factors determine the success or failure of your industry, and thus, you should consider each of them before moving forward with the setup. These factors include:

1.   Setup costs

As is the case in any business, the initial costs of setting up the industry are very high. You should, therefore, be prepared to spend in finding the location, workers, purchasing the necessary machinery and even paying the required authorities. You should also calculate the costs needed to maintain the industry before it starts generating profit.

You should also seek quotes from different industry owners so that you may be aware of the hidden costs of production. In case you do not have adequate finances, then consider looking for sponsors and investors who will help you build up the industry.

2.   Location of the Industry

The location you choose for the industry should be close enough to the sources of your raw materials and also not too far from your target market. This will help in reducing the costs incurred in transport costs and also ensure that your products are still fresh when they hit the market. Ensure that there is adequate infrastructure such as good roads and rails nearby for easy mobility.

Since manufacturing requires machines, ensure that the location provides adequate space for both big and small machines in the industry. This should also incorporate space for your storage facilities.

3.   Demand for your Products

Choosing the right product for production is the key to a successful business. Therefore, before starting the industry, ensure that you have done adequate research on the products in the market and have found a gap where which you can fill. Producing products that are already flooded in the market will only result in losses for your industry.

You should also do some research on who your competitors will be and how they operate. This will ensure that you can incorporate new and different ideas like use of a small industrial robot in your production to give you an advantage over them.

4.   Good Workers and Experienced Partners

As a small startup industry, you will need the help of other experienced industry members to help you promote your product and improve your dominance in the market. You should, therefore, ensure that you choose wisely who you’ll partner and ensure that they have a good reputation in the market and have been in the business for a long time.

Also, ensure that you hire good workers to start with. If possible, only hire workers that have some years of experience in the business. This will ensure that you produce quality goods and build a good first impression for you in the market.

5.   Legalities and Licenses

When starting the industry, ensure that you are aware of every authority that may be involved in the process and clear with each of them. Make sure that you have understood every law in place regarding the construction of manufacturing industries in that state or country, and that you can meet all their requirements.

With different countries having different laws regarding employee rights, working and safety conditions, work permits and even environmental preservation, it would be advisable that you visit a consultant from that country or state who’ll help you clear out these processes.


Despite the many things that may go wrong when setting up an industry, it is possible for you to start and run a thriving manufacturing industry. Following the factors above and doing more research is one sure way of ensuring you begin a successful industry.