Lincoln Electric sets standard for Cleveland area manufacturing

May 30 2013

Euclid, Ohio-based Lincoln Electric has big plans for the future. A strategy that was put into place three years ago is expected to yield some pretty spectacular results in a relatively short amount of time.

In 2010, the company initiated a 10-year plan that would double its revenue by 2020. This would put the company at about $4.5 billion annually by that time. In 2012, Christopher Mapes took over as CEO and he believes the organization is well on its way toward achieving this goal.

Mapes recently spoke with Crain's Cleveland Business about the actions his organization is taking to expand its earnings potential.

"We're investing in the long term," he said, referring to the various actions the company has taken in order to not only see immediate results, but to sustain positive growth over the next several years.

The welding equipment manufacturer is a symbol of the type of ambition businesses in the Cleveland area have. Lincoln Electric wants to expand its global reach and is taking necessary steps to get there. Not every organization will have the exact same goals, but the desire to significantly improve financial standing is driving a myriad of companies across Ohio.

Improving logistics can benefit bottom line

Implementing strategies and investing in solutions to help increase sales numbers is certainly a smart strategy, but so is reducing unnecessary spending. Both have the ability to improve the bottom line and help organizations become more profitable. Manufacturers in the area spend a fortune on logistical costs, but building efficiency into various processes along the supply chain can reduce this and improve profitability.

For example, working with the wrong courier service can impact an organization's profits because it will be spending a tremendous amount of money on shipping. Inefficient shipping can cause a number of problems for an organization, because it will likely waste valuable time and money. Working with a Cleveland logistics company can allow local manufacturers to streamline their processes and have a positive effect on overall productivity and profits.

Lincoln Electric is a good model to follow. The company's hard work has already started to yield some impressive results in the past three years. Businesses looking to follow in its footsteps and improve profitability their own way can do so if they invest in the right logistics partners.