Is Your Business Stuck in a Cycle of Highs and Lows? It Might be Time for a Strategy Reset
It’s a scenario playing out across Wisconsin and beyond: a manufacturer sees a sharp drop in orders, scrambles to cut costs, and waits for business to return. When it does, the team is overextended. Then the next downturn hits, repeating the cycle. According to Stephen Smiley, WMEP’s Business Transformation Services Leader, many manufacturers today face financial distress driven by sales volatility and the challenge of operating while also trying to grow. “Some are breaching bank covenants. Their credit lines are frozen,” Stephen says. “And they’re stuck—trying to find new business while figuring out how to stay afloat.”
The Real Cost of the Rollercoaster
This cycle can devastate margins, strain cash flow, and exhaust teams. Yet many small and mid-size manufacturers lack the tools or frameworks to break free. “They feel like they’re flailing,” Stephen explains. “They know they need new customers or markets, but they don’t have a clear path. They’re trying things that aren’t working and they’re getting scared.” Often, manufacturers see growth as separate from operations. So when business slows, they turn inward: tightening budgets or leaning harder on existing accounts, rather than building a proactive growth strategy. As Stephen puts it: “You can’t cost-cut your way to long-term success. Eventually, you have to find new revenue.”
Manufacturers Need a Plan—Not Just a Push
For many manufacturers, customer acquisition has never required a formal strategy. Growth often happened organically through word of mouth or repeat business from long-term relationships. But when key accounts decline or markets shift, leaders find themselves in unfamiliar territory. “The front end for some manufacturers is simply taking orders,” Stephen says. “They know how to fulfill demand, but they’re not comfortable or skilled at generating new demand.” While many manufacturers excel at production, they may lack experience—and resources—on the front end of the business to develop and execute an intentional growth strategy. Without that experience, companies often fall into a scattershot approach, trying a little of everything but making little real progress.
What It Takes to Break the Cycle
“Sometimes it’s as simple as recognizing that your ‘secret sauce’ could be valuable in a nearby market,” says Stephen. “Other times, it requires getting serious about strategic planning and sales and marketing fundamentals.” A good starting point is clarifying your value proposition and ensuring it’s relevant to the new markets you’re targeting—before committing significant resources. This means going beyond assumptions: invest in voice-of-customer research, meet with prospective customers, and truly understand unmet needs, buyer requirements, and where your business can differentiate and add value. Approach this effort with a learning mindset. Build a base of facts before you act and adopt a “fail fast” attitude—generate insights quickly, adjust as needed, and keep moving forward. Leadership matters, too: no growth strategy will succeed without strong commitment from the top and clear coordination and communication to keep the team aligned.
A Better Way Forward
Breaking the rollercoaster pattern requires commitment, focus, and often the courage to confront hard truths. It may also take investment in new resources, customers, or markets. The payoff, though, can be transformative. “The right strategy, implemented with discipline, can turn a struggling business into a focused, resilient one,” says Stephen. That might mean defining a stronger value proposition, exploring adjacent markets, or better aligning internal capabilities with external demand. With a clear strategy, manufacturers can stabilize operations, diversify their customer base, and achieve more consistent, profitable growth. Those who recognize that growth is a process—and that it requires both insight and action—will be best positioned to navigate uncertainty and build a stronger, more resilient future.
WMEP is a nonprofit consulting organization with a simple mission: help Wisconsin manufacturers succeed. Our advisors bring real-world industry experience and deliver practical solutions across three key focus areas: Growth, Operations, and People. Contact us to explore how we can help you reduce revenue risk and drive sustainable growth or learn more about our Growth services.