This is still the most common approach to financing new machinery. Utilizing EU subsidies and readily available loans, companies have been massively investing into new machinery. When it comes to developing technologies, we have a lot to be proud of.
Sadly, plants often purchased (and still purchase) technologies that did not reflect the market demand. There are production plants whose production capacity is many times higher than the market demand as well as their sales potential. As a result, the production growth in such plants is small while production costs are enormous. This is because only some of the technologies have been financed by the EU subsidies and the companies had to take on loans to pay for the rest. Despite significant technological development and extensive investments, such companies have been barely able to stay afloat.
The greatest disadvantage of the current state of affairs in many companies is their uneven development. Today materials as well as technologies are readily available. What has been missing then? We dare say there are two essential things these companies are lacking.
The first is organisation. Companies that started off as small craft workshops have rarely been able to develop a firmly set structure. The production manager, sales manager or marketing manager have been given very little decision-making power. It is still the boss of the company who makes all the executive decisions.
This is a textbook problem. A company managed by one person keeps growing until a moment comes when the boss should be replaced by experts. However, the boss typically finds delegating powers to employees rather difficult. A typical argument is “I built my company from scratch, why should I fail now?” or “I can do this better.”
The bigger the company, the more orders and problems there are. With only one person managing everything, mistakes are unavoidable. Although an operator (technician, mechanic) cannot at first operate the stone-cutting machine as well as the boss, they soon acquire the skill. But if they are not required to make decisions, why should they bother? A qualified engineer or an experienced operator would likely oppose the decision to purchase a multi-head polisher for a shop that sells barely 100 square meters of stone per month. However, their protest would fall on deaf ears when the boss thinks they know better.
The same is true for the sales system that seems to be the second most common obstacle limiting the company’s growth. A good sales manager knows how to reach potential customers. Although the boss has a lot of experience in the field, without a good knowledge of marketing strategies they are bound to fail on the market.
And so we come to the concept that needs to be implemented in the next step so that your company can enter the next level: Stonemasonry 3.0
What does such a company look like? Firstly, the company organisation structure reflects the size of the potential market – from the purchase or material and processing (including the development of technological lines) to the sales system and marketing. Secondly, the company has an extensive and well-thought-out sales system. Thirdly, the company also needs a system that can reach potential customers and reflect the changes on the market, i.e. an effective and modern marketing system.
In the upcoming issues of the magazine Kurier Kamieniarski I am going to address the above-mentioned issues in a greater detail. I would also like to present several companies willing to share their successful strategies that lead to Stonemasonry 3.0. I am also going to interview companies that believe they have already reached the level Stonemasonry 3.0, as well as those well underway, that is stone-cutting companies 2.5 or 2.8.
Source: Kurier kamieniarski
Author: Dariusz Wawrzynkiewicz | Published: 5 July 2017