November 6, 2024
Plant expansion is a significant milestone for any company, marking growth and opportunity. However, as discussed during a recent panel discussion I moderated with industry leaders Jerry Frisch from Wasatch Container, Gene Marino from Akers Packaging, and Matt Bivens from Harris Packaging, this complex process is filled with unforeseen challenges. The panelists emphasized the importance of having a plan B and adapting to the unexpected, a lesson that resonates for all aspects of business in today’s fast-changing environment.
Planning for the Unpredictable
No matter how well planned a project may be, something always goes wrong. Frisch shared his challenges of how unexpected delays of switch converters and unplanned expenses affected Wasatch Container’s expansion. Similarly, Marino discussed delays in acquiring critical equipment and needing to adjust their installation timeline. Both experiences highlighted the need for contingency and adaptability.
While project management and planning are crucial, what often proves just as important is the ability to react quickly when things don’t go according to plan. This applies to plant expansions and everyday operations. Having contingency plans, alternative suppliers, or flexible timelines can help companies avoid prolonged disruptions and financial losses.
Matt Bivens shared his experience of dealing with potentially disruptive downtime when installing a new machine at Harris Packaging. This left his team searching for solutions because they hadn’t accounted for such demand in their original plan. This led to creating a new line in a new area of the plant, causing them to sacrifice some raw material storage. “We flipped the script because business conditions changed,” he said. Nonetheless, it was still a problem. Bivens’ experience underscores the critical need to build flexibility into any expansion project—whether in terms of budget, layout, staffing, or timelines.
Need for Agility
The need for adaptability extends far beyond the scope of plant expansions. The post-pandemic world has highlighted the importance of agility in business, making it clear that the ability to pivot quickly is a necessity for survival and growth.
While plant expansions can be disruptive, similar issues occur in day-to-day operations. The pandemic magnified these issues, driving home the point that the ability to pivot in response to new challenges is essential.
Importance of a Plan B
Whether it’s alternative suppliers, backup timelines, or financial reserves to cover unexpected costs, companies must be prepared for anything. The panelists stressed that planning for contingencies is a safety net and critical component of successful operations.
The panelists reflected that although they each had backup plans, they hadn’t anticipated how frequently they would need to rely on them. The ability to adjust plans on the fly allowed the projects to continue without long-term disruptions. In today’s business climate, where disruptions seem to be the norm, having contingency strategies is essential for maintaining productivity and profitability.
Jeff Dietz is president of Kolbus America and vice chairman of AICC’s Associate board.
