How to grow your manufacturing business in 2026

Checkr Editor
July 20, 2026
5 min read
Checkr Editor
Author

Growing your manufacturing business requires your team to make clear decisions across people, processes, technology, and markets. In this guide, we’ll cover practical strategies to remove hiring bottlenecks, adopt the right automation, expand into new products and markets, and align your leadership team around a shared priority.

Key takeaways

  • Targeted automation increases throughput and frees up workers for more strategic and creative tasks
  • Expanding into new products or markets works best when it’s guided by market data and tested in phases
  • Workforce shortages are one of the biggest barriers to manufacturing growth; faster hiring and fair chance hiring practices expand your talent pool
  • Faster background screening impacts production capacity: reducing time-to-hire from weeks to days means orders get fulfilled sooner and business goals continue to progress
  • Modern screening platforms like Checkr help manufacturers hire qualified candidates faster while maintaining compliance

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Growth strategies for manufacturing companies

Growing your manufacturing business rarely comes from one big move. Instead, it’s a result of making steady improvements across several areas at once: hiring, operations, technology, customers, and leadership.

The following strategies cover the most common steps that manufacturing leaders can take to drive sustainable growth.

1. Invest in automation and digital transformation

When done well, automation performs manual tasks, reducing the amount of time employees spend on manual busy work. They can then focus on more technical, creative, or strategic tasks. Implementing digital transformation strategies can look like:

  • Repetitive task automation: Pick-and-place robots, material handling, and automated inspection can perform more monotonous or physically demanding work.
  • Connected machines: Sensors and Internet of Things (IoT) devices supply supervisors with real-time data on production output, quality, and downtime, helping them make faster decisions.
  • Low-code scheduling tools: Using digital work order management to create and close service orders or tasks reduces manual administration and improves shift planning.

The most effective approach to digital transformation begins with simple, high-impact use cases, like deploying service management software for a specific department’s maintenance orders. Then your team can test how the initial automation works before scaling to more complex systems.

2. Consider expanding into new products and markets

Expanding into new but related product lines or entering nearby markets allows your business to build on your existing resources, like tooling, certifications, and supplier relationships. When you already have production knowledge and have built quality systems, it’s less risky to diversify. Testing demand in small, measurable pilots first helps your team avoid overbuilding in markets where you haven’t yet built a presence.

3. Align leadership around one clear priority

Fragmented focus from leadership teams is one of the most common reasons manufacturing growth stalls. When each department is pursuing multiple major priorities, teams receive mixed signals and resources are spread too thin.

Choosing a single shared growth initiative for a designated period, like a quarter or a year, gives everyone a single reference point for decisions and budgets. You can also implement systems for tracking priorities, like monthly reviews or goal management software, to keep the team aligned and identify problems early.

4. Address any hiring bottlenecks

Your manufacturing team’s hiring speed can affect how many orders you can fulfill. When roles stay open for weeks or months, production slows and your other team members are often overloaded. Streamlining the hiring process, from job posting to day-one onboarding, reduces delays and maintains your team’s momentum.

Modern background screening platforms, like Checkr, integrate with applicant tracking systems (ATS), so hiring teams can track candidate screening without constantly switching between software. Faster, more accurate decisions mean candidates move through the process more quickly and can start their roles sooner.

Common ways to reduce hiring bottlenecks include:

  • Standardized job profiles: Clearly stated skill requirements and pay ranges attract candidates who are a better fit and reduce back-and-forth.
  • Mobile-friendly applications: Digital document collection and automated status updates keep candidates active in the process, not waiting for a response for weeks.
  • Preconfigured screening workflows: Role-specific background check packages help to cut unnecessary steps and days from the hiring cycle.

With Checkr, you can build custom screening packages by role, such as forklift operator or quality inspector. You can also attach those role-specific screening packages directly to your job profiles through our integrations with popular ATS software, like Greenhouse. Our mobile portal for candidates allows them to upload documents and receive real-time notifications about their background check status.

5. Strengthen supplier and customer relationships

When you have a resilient source of suppliers and retain customers long-term, your business’s growth stabilizes. Diversifying your suppliers reduces the risk of disruption, while deeper customer relationships often mean repeating orders and referrals. Here are a few things to consider:

  • Dual sourcing: Having multiple suppliers for your critical materials decreases the risks that come with having only one source.
  • Quarterly business reviews: Regular check-ins with top customers may identify upselling opportunities and also reveal service issues before they become a long-term problem.
  • Voice of the Customer programs: Structured feedback loops show what your buyers value most and if there are any gaps in the products or services you offer.

6. Use market intelligence to guide decisions

Consistently using strong market data helps your team make smarter choices about where to invest your time and capital. Competitive analysis, customer feedback, and industry trend monitoring may identify opportunities so your business can capitalize on them.

Win/loss analysis, price benchmarking, and distributor feedback are practical starting points for manufacturers.

7. Improve operational efficiency with lean manufacturing

Lean manufacturing is a production philosophy focused on reducing waste and improving flow. Over time, developing stable and documented processes increases products’ quality and paves the way for more scalable output. Here are a few common lean tools:

  • Value stream mapping involves creating a map of the product fulfillment process to visually identify bottlenecks.
  • The 5S methodology for workplaces is based on Japanese principles for order, minimalism, and sustainability.
  • Tracking first-pass yield, which is the percentage of products completed correctly the first time, shows whether process improvements are working.

Organic vs. inorganic growth for manufacturers

Manufacturing companies typically pursue growth through two paths: organic or inorganic.

Organic growth comes from expanding the existing business through more sales, improved operations, or new offerings built internally. It’s slower but more predictable and easier to manage. Examples of organic growth include serving a new region of the country, creating new SKUs, or focusing on prospects with the highest conversion potential.

Pros of Organic Growth

Cons of Organic Growth

Lower risk

Slower pace

Maintaining consistent company culture and systems

Very dependent on internal bandwidth

Often more control over methods

Results may not pan out 

Inorganic growth comes from partnering or merging with another company to add customers, capacity, or expertise. It moves faster but requires careful planning, especially when integrating two businesses. Inorganic growth can include buying a competitor’s business, acquiring one of your business’s suppliers, or partnering with a large agency.

Pros of Inorganic Growth

Cons of Inorganic Growth

May happen more quickly

The complexity of integrating systems and teams

Faster access to customers and assets once merger is completed

Team culture could shift significantly

More natural expansion into other markets

Higher financial cost and potential debt

Many manufacturers combine both approaches over time, building organically while watching for acquisition opportunities that align with their business strategy.

How to address shortages in the manufacturing workforce

The manufacturing sector is facing a well-documented labor shortage. Finding and retaining qualified workers is one of the most common barriers to growth, especially for small and mid-size manufacturers.

The following strategies focus on developing skills internally, expanding your candidate pool, and speeding the hiring process.

Upskill and reskill your existing workforce

Developing your team internally reduces your business’s dependence on the hiring industry, especially with labor shortages.  Common methods of investing in your current employees include:

  • Apprenticeships: Structured earn-while-you-learn programs for employees learning new skills can pair classroom learning with paid shop-floor rotations.
  • Cross-training: Skills matrices identify the employees who can cover critical stations, which can reduce spikes in overtime.
  • Microlearning: Short digital lessons and QR-linked standard operating procedures (SOPs) help workers learn gradually without pulling them off the line for long training sessions.

Recruit from nontraditional talent pools

Traditional job boards often reach the same limited pool of applicants. Expanding your recruitment strategies to new sources can increase your candidate flow without increasing spend proportionally.

  • Veterans: Veterans bring procedural discipline, safety awareness, and teamwork skills that translate well to shop-floor roles. Writing job descriptions with military skils in mind may help your posts reach more veterans.
  • Career changers from adjacent industries: Workers from logistics, construction, and hospitality often have strong transferable skills. Paid tryouts or short work-sample assessments help you and your potential employees evaluate whether a new career is a good fit.
  • Community and education partnerships: High schools, community colleges, and workforce development boards can connect manufacturers with early-career candidates. Programs like job shadow days and weekend labs introduce potential employees to roles without disrupting your production.

Adopt fair chance hiring practices

Fair chance hiring is the process of thoroughly and thoughtfully evaluating candidates who have criminal records, rather than automatically disqualifying them. To evaluate candidates, consider asking the following questions:

  • Is this conviction or arrest related to the specific role we’re hiring?
  • How much time has passed since the offense occurred?
  • Has the candidate shown evidence of rehabilitation or growth since the offense occurred?

This approach widens your talent pool while helping you make decisions based on realistic risks. For example, an individual with a DUI conviction may not be the best candidate for a driving position, but your team might decide that someone with a misdemeanor conviction unrelated to driving would be a good fit in a delivery role.

Key elements of a fair chance hiring policy include:

  • Individualized assessment: Review each case individually, based on the nature of the offense, the time elapsed since the offense, and the duties of the specific role.
  • Role-based filters: Apply different screening criteria to different types of roles or departments, rather than a one-size-fits-all approach.
  • Transparent policies: Communicate clearly on your job posts and careers page about how your team evaluates criminal history.

Checkr supports fair chance hiring with candidate storytelling features and configurable adjudication workflows that help teams apply consistent, documented criteria. The Assess adjudication feature allows you to filter records and create rulesets for background checks, like setting lookback period rules about unsafe vehicle operation for a driving role.

Speed up hiring with faster background checks

Slow background checks delay the onboarding process and can cause candidates to accept other job offers. The background check process typically includes criminal records and may also include motor vehicle records (MVR), employment verification, and drug testing, depending on what employers select for their package. Each check also takes a different amount of time to complete, since background check providers compile records from multiple sources.

Modern screening platforms connect directly with ATS systems, provide a mobile portal for candidates, and automate compliance steps like disclosures and authorizations. Checkr delivers the majority of criminal searches within one hour, with real-time status updates for both hiring managers and candidates.

Start growing your manufacturing business with Checkr

Solving workforce bottlenecks, adopting automation, expanding into new markets, and aligning your leadership team can help your manufacturing business grow effectively. Hiring is often the first constraint to address, and faster, fairer background screening is one of the most direct levers available.

Checkr helps manufacturing companies hire faster and more fairly. We offer background check packages starting at $29.99, integrations with leading ATS and HRIS systems, and compliance tools built for multi-site operations. Get started with Checkr today.

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Frequently asked questions about growing a manufacturing business

What is the 80/20 rule in manufacturing?

The 80/20 rule, otherwise known as the Pareto Principle, suggests that roughly 80% of results come from 20% of inputs—meaning a small share of products, customers, or processes typically drives most revenue or most quality issues. It also implies that 80% of problems, such as downtime or product flaws, are the result of 20% of the business’s potential root causes.

What are the 5 Ms of manufacturing?

The 5 Ms are manpower, machines, materials, methods, and measurement. Manufacturers analyze these five factors to identify root causes of production problems and to improve your processes.

How long does it take to grow a manufacturing business?

Meaningful growth typically takes multiple years rather than months. However, this depends on your business’s starting size, the market conditions, capital access, and how consistently your team executes a growth strategy.

How does fair chance hiring help manufacturing companies grow?

Fair chance hiring expands your available talent pool, which can help manufacturers fill hard-to-staff roles more quickly and reduce their overall turnover.

What background checks do manufacturing employers typically run?

Manufacturing employers often run criminal background checks, as well as employment verification, motor vehicle record (MVR) checks for drivers, and drug testing depending on the specific role and any applicable regulations.

Disclaimer

The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.

About the author

Checkr is the data platform that powers safe and fair decisions. We’re a technology company that helps our customers assess risk, modernize hiring, and cultivate trusted relationships in their workplaces and communities.

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