3 Ways for Small DIB Businesses to Lead the Way
Allison Giddens
President, Operations (SMB Manufacturing) | Community Volunteer | Humorist
If you're a small business manufacturer operating in the Defense Industrial Base, there are some things you should be doing right now - not for success, but for survival.
Here are the Top 3 things you should be doing right now:
#1 - Keep your eye on the [CMMC] ball
The CMMC Rule is officially on OMB's desk (as of June 20, 2024) - and that means that the Final Rule is not far behind. It's time to put away your tray tables and return your seats to their upright and locked position.
If you're a contractor planning to be assessed to CMMC L2, the U.S. Government is estimating 525 hours of assessment planning and time. (at least, that's how I interpret the murky notice).
The notification does exactly read clearly, but hey, it's written for me to follow, but not necessarily understand - amiright?
If these [new!] and significantly high costs are not already in your rates - they should be. Start having conversations with your customers about projected costs on the horizon if you aren't doing so already.
#2 - Start managing your supply chain up and down
With some concerning news in the DIB supply chain lately...
We (small business) in the DIB are used to being the focal point and being labeled the weak link in the supply chain. In some regards, it's warranted. In others, it couldn't be further from the truth.
So, what to do?
If you aren't doing so already, look at your suppliers AND your customers.
What customers do you have that regularly pop up in the news - for better or worse?
Is your product related to those news stories? Is there opportunity there, from a business perspective? Is there risk?
What suppliers do you have that are problematic? I had a boss once who would say: "In business, when you find yourself talking about someone or something (a company) a lot, it's time to sit down and really think about why that is."
Who are you talking a lot about... and are the conversations less than pleasant?
Are you having repeated problems with a vendor? Are there trends in those problems? What type of communication is taking place between you and the vendor? Do you anticipate this being a short-term problem or a long-term problem? What bigger-picture initiatives or projects is that vendor putting at risk?
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How impactful is their failure to perform on your ability to make payroll?
#3 - Prepare for Surge and Sustainment
Get ready to ramp up. If you're already taking care of items one and two above, DoD is going to need you for #3. The "pie" of what's available for us small manufacturers might be about to get much larger.
What are you going to need to increase capacity?
New machines? Replacement of machines? How 'bout those bank interest rates?
We're all challenged with a limited workforce. How do you creatively overcome that?
Can you adjust production hours for more machine time? Can you bring on contractors? Does overtime make sense? If you're already running OT, do you risk burning out your team?
Is there anything at all you can automate? Even the simplest of business processes?
I don't have a crystal ball that tells me if the U.S. Government is going to implement surge and sustainment, but I'd be stunned if we get through the next 6 months without at least hearing about it more frequently.
If you need a reason to believe me, just look at what's happened around the world in the last two months:
In summary: If you're a small business contractor on auto-pilot, wake up and get ready.
We need each other, fellow small DIB businesses.
Who else is going to clean this place up?
Transformational Coach. Visual Artist. Educator. Poet. Elder passionate about social justice, equality, learning, and supporting the arts. Gatherer. Big fan of wonder walks and open spaces where everyone has a place.
4moAllison Giddens, Your advocacy for the small manufacturer is like none other. There is always a better way.
Advocate for Small Manufacturers | Systems Thinking Proponent | Affordable Automation Advisor | Global Sourcing Advisor
4moThanks for sharing, Allison Giddens. Your advocacy for small manufacturers is heartwarming. It is excellent for small manufacturers to hear from other small manufacturers. The advice in this article (in light of #3) also applies to aspiring DIB suppliers who still need to take the proverbial leap.
Managing Director: Uniting Manufacturing Leaders and Top Talent to Drive Success!
4moThanks for sharing!
Brain rental service for ISO certifications/accreditations.
4moSure, let's spend other people's money like it's water.