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"Our plans to develop a major plant expansion were greatly enhanced by the all-day CAD planning session that we had with RBE. It was a dynamic and powerful tool that accomplished much more in the time than I had expected. It provided us with the clear ability to put our needs together with a workable layout and course of action."

John Berthelsen

President, Suttle-Straus
Waunakee, Wisconsin

Articles

Converting Magazine

2005 Small Business Guide Our five-part plan to growing your package-printing and converting operation.

By Jorina Fontelera

 

How to Know When It's Time to Grow: Three Signs for Plant Expansion

Your business is growing, and revenue is flooding in. Everything seems to be in order. But then you start to notice that production seems to be slowing down, revenue is starting to decrease yet work keeps on piling up. If this sounds like your facility, a plant expansion might be just what you need.

Warning Signs

According to Hal Ettinger's article, "Three steps toward a successful expansion," there are several warning signs that signal a need for an expansion or relocation. Ettinger is the president of RBE Co. (Lawrence, KS), which specializes in project management, plant layout and engineering design for the printing industry.

The first sign is overcrowding, where people don't have room to move around without getting in each other's way. "When customers see this kind of overcrowding, it looks like mayhem," Ettinger says. "From the customer-relations standpoint, this is a signal to do something about your space requirements."

Another flashing red light is the loss in revenue because people are spending their production time working around conditions that don't allow them to be efficient and effective.

And if your business is growing, expansion may be necessary if the present structural and engineering systems will not be able to handle additional loads. "In other words, you can no longer install machinery because your electrical system can't handle it," Ettinger says. "Or, you can't hire additional personnel because the present plan lacks employee facilities."

Expanding vs. Relocating

After determining that your plant can no longer sustain your growing business, you need to determine whether it's better to add to your current facility or you need to move. "You need to ask yourself whether your current work space can be home for the next five or 10 years. Ask whether it can grow with your organization," Ettinger writes in his "Planning for plant expansion" article. "You must choose the one that will benefit you the most in the long run."

If you decide to stay in your current space, you can either redesign your existing layout or you can add onto your existing structure. "Every square foot should be justified to maximize its potential," Ettinger says.

But before you start knocking down walls, there are several steps Ettinger suggests to make the expansion smooth and less costly. First, analyze your plant's current conditions and figure out where the problem areas are. Second, determine your plant's expansion options, such as the available structural and engineering systems, and assess space for current and future needs. Third, develop a layout and consider the "buildability" of the layout. Meaning, is it a design that the architect or engineer can turn into a three-dimensional facility?

Once those steps are complete, you should develop a plan and appoint a committee to oversee the expansion process. You should define the company's goals and needs in terms of space, budget, overall size and business development. You should also have a general checklist to make sure everything involved in the expansion is accounted for.

 

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