At J.H. Cohn, we understand that manufacturers and distributors face a unique variety of operating, production and logistical issues. So we also understand what it takes to help you compete successfully in today's challenging marketplace. Our Manufacturing and Distribution Industry Practice provides specialized accounting, consulting, and taxation services to meet the needs of New Jersey, New York, Connecticut, and California manufacturing companies and wholesale distributors. The more than 30 members of our industry practice are experienced in most major manufacturing segments, providing the industry with a value proposition that includes personalized and attentive services, strong technical expertise, and uncompromising integrity.
Supporting Manufacturing and Distribution Industry Segments
The members of J.H. Cohn's Manufacturing and Distribution Industry Practice have expertise in all types of manufacturing environments from large chemical manufacturers to bakeries to metal fabrication operations. Our group helps clients with $10 million to $200 million in revenue. The combined experience of our team enables J.H. Cohn to provide the specialized business and financial advice our clients need to achieve their business objectives.
Due to the concentration of companies in selected manufacturing segments in our marketplace, J.H. Cohn has created specialized teams in the following segments:
• Chemical and Process Manufacturers
• Pharmaceutical and Medical Device Manufacturers
•
Food and Beverage Distributors• Transport and Logistics Companies
• General Manufacturing
Solutions for Manufacturing and Distribution Companies
Manufacturers and distributors appreciate that J.H. Cohn does not offer a “one size fits all” approach to problem solving. They recognize that J.H. Cohn creates custom solutions to fit their unique needs based on our in-depth understanding of their problems, decades of industry expertise, and close personal contact. We do this while preserving the objectivity and independence required in the performance of our professional services.
A few of the services we provide to create custom solutions for manufacturers and wholesalers include:
• Accounting, attestation and tax planning
• Budgeting and cash flow projections
• Business performance management (BPM)
• Business valuations
• Buy-sell agreements
• Corporate governance services, Sarbanes-Oxley act compliance, SAS 70 reviews
• Cost segregation studies (CSS)
• Customer and employee satisfaction surveys
• Document management
• Due diligence services
• Employee pension and benefits
• Financing options
• International business and tax considerations
• Inventory control
• Management and employee training
• Networking and system integration
• Productivity and profit improvement and cost containment consulting
• Revenue acceleration
• Software selection and implementation, including ERP, WMS and CRM systems
• Succession planning and exit strategies
• Supply chain management
Distribution Industry Snapshot
As a distributor, your organization is impacted by many factors. Issues can include increases in freight costs, warehouse automation, fill rates, and working with overseas manufacturers. As more manufacturers move overseas searching for lower labor and production costs, United States distributors have to work hard to add value to customers by supplying technical knowledge and support, improve fill rates, and create new opportunities through the distribution of imports from low cost countries like Mexico and China.
Industry issues include:
• Consumers bypassing distributors by ordering on-line
• Giant retailers bypassing distributors by selling directly to the public
• A dependence on levels of manufacturing activity and consumer demand for products
• Fixed operating costs
• The need for improved warehousing and logistics
• Dependence on skilled labor
• Lack of expertise in conducting business with foreign manufacturers
Manufacturing Industry Snapshot
The highly fragmented manufacturing sector accounts for approximately 1/8 of the value added to the U.S. economy, according to the Bureau of Economic Accounts May 2008 Survey of Current Business. Production in the sector depends on consumer spending and retail sales and thus swings widely based on the economic strength of the nation. U.S. manufacturers make major investments in production equipment, computer systems, and productivity improvements in order to offset higher domestic labor costs than the Pacific Rim. Accounting for about 1/6 of the U.S. economy, total profits in 2004 were improving due largely to higher operating profits and equity income. Increasing demands for goods is causing production levels to rise, resulting in capacity utilization for producers including primary metals, computers, petroleum, machinery, coal, motor vehicles, and electronics.
Current trends in manufacturing:
• More automation and less labor
• Operations moving overseas
• Use of electronic commerce
• Outsourcing services that are not core competencies
• Development of global network for purchasing supplies and selling finished goods
• Creating alliances with suppliers
• Growing exports
• Developing more flexible manufacturing processes and business processes
• Streamlined raw materials supply lines
• Competition for low cost imports
• Government regulations impose restrictions