When it comes to the application of OpEx, one question arises time and again: why do so many manufacturing businesses resist spending relatively small sums—like £30,000—on initiatives that could generate monthly savings of £100,000 or more?
At Project7 Consultancy, we’ve encountered this paradox repeatedly. While it may seem irrational, there are real reasons behind this reluctance, ranging from risk aversion to resource constraints. This article explores these factors and offers practical advice for businesses ready to break free from this cycle and embrace meaningful change.
Why Do Manufacturers Hold Back?
1. Fear of Risk
Manufacturers often prefer to stick with familiar processes, even when those processes are costing them money. The idea of investing upfront, no matter how promising the returns, feels risky—especially in sectors where margins are tight and market conditions are unpredictable.
2. Lack of Awareness
Many decision-makers don’t fully understand the benefits of OpEx initiatives or the scale of savings they can deliver. Case studies and success stories may show what’s possible, but without seeing the potential in their own operations, these opportunities remain abstract.
3. Short-Term Thinking
Businesses are often driven by quarterly results, which can make long-term planning seem like a luxury. This short-term mindset prioritises immediate profitability over sustainable improvements, even when those improvements would generate far greater returns in the long run.
4. Resource Constraints
Small and medium-sized enterprises (SMEs) in particular often feel they lack the resources to invest in OpEx. Competing demands for capital make it hard to prioritise efficiency projects, even when the return on investment is clear. Unfortunately, doing nothing is often the costliest decision of all.
5. Organisational Culture
Companies with a culture of continuous improvement are more likely to embrace change and see failure as a learning opportunity. On the other hand, organisations that resist change or cling to the status quo struggle to justify OpEx investments, even when they desperately need them.
6. Past Disappointments
We often hear from leadership teams who’ve tried OpEx initiatives before and been burned. Whether due to poor execution, lack of follow-through, or unclear objectives, these failed attempts leave a sour taste. Leaders ask, “Why throw good money after bad?” The issue, however, is often that these efforts didn’t focus on building lasting capability or driving real cultural change.
Breaking the Cycle
So how can manufacturers overcome these barriers and realise the full potential of OpEx?
1. Reframe the Risk
Investing in OpEx should not be seen as a gamble but as a strategic move. Demonstrate the potential savings with clear examples and data. When businesses see the connection between small investments and big savings, the narrative shifts from risk to opportunity.
2. Build Awareness
Decision-makers need to understand what OpEx can achieve. This means sharing case studies, running pilot projects, and providing data that directly connects investment to results. Concrete examples go a long way in turning scepticism into curiosity.
3. Think Long-Term
Quick fixes rarely solve underlying issues. A lasting OpEx transformation takes time—often 18 months to three years—but the results are worth it. Focus on building a culture of continuous improvement rather than chasing short-term gains.
4. Engage the Whole Workforce
OpEx is not just for production teams. For change to stick, every department must be involved. Employees need to understand the “why” behind the changes and feel empowered to contribute. This kind of engagement builds momentum and sustains progress.
5. Learn from the Past
If previous attempts at OpEx didn’t deliver, take the time to understand why. Were the right people involved? Was there a clear plan for sustaining changes? Use these lessons to inform a new, targeted approach that avoids the same mistakes.
6. Partner Wisely
Whether working with consultants or building internal teams, choose partners who focus on creating lasting value. The goal should be to build capability and drive cultural change, not just to deliver short-term wins.
The Real Cost of Doing Nothing
One of the biggest risks is doing nothing at all. Businesses that avoid OpEx investments often face ongoing inefficiencies, higher costs, and lower margins. By failing to address these issues, they risk falling behind competitors who are willing to embrace change.
A Better Path Forward
Manufacturers who embrace OpEx as a long-term strategy see real, measurable benefits:
- Increased Efficiency: Processes become smoother and more reliable, reducing downtime and waste.
- Higher Employee Engagement: Teams feel empowered to improve their work, creating a culture of ownership.
- Improved Profitability: Lower costs and better productivity lead directly to stronger financial performance.
What Our Clients Say
“Project7 helped deliver a new business system that linked strategy with execution, tailored to our global organisation.” – VP Finance, Heavy Manufacturing
“Project7’s ability to take accountability for the turnaround of a struggling facility was outstanding.” – VPGM EMEA, Benteler
“By facilitating Value Stream Analyses, Project7 helped us maximise business opportunities and leverage our culture for success.” – Reliability Manager, Angel Trains
Wrapping Up
The paradox of manufacturers hesitating to invest in OpEx highlights the challenges of balancing risk, resources, and long-term planning. But by reframing the narrative, building awareness, and focusing on sustainable change, businesses can overcome these barriers and access their true potential.
If you’re ready to explore how OpEx can transform your business, contact Project7 Consultancy for a no-risk consultation. Together, we can create a roadmap for lasting success.
