Based on an interview with John Shank, CPA, CGMA, BMSS Founding Member
The manufacturing industry has undergone a remarkable transformation over the past three and a half decades, evolving from predominantly local operations into sophisticated, technology-driven enterprises with global reach. John Shank, Founding Member and Chief Practice Officer at BMSS, has witnessed this evolution firsthand as the firm serves over 200 manufacturing and distribution clients ranging from ambitious start-ups to established companies generating more than $600 million in revenue. As BMSS’ largest industry sector, manufacturing represents not just a practice area, but a deep reservoir of experience and insight into how businesses can successfully navigate change.
The Geographic Expansion of Manufacturing
Perhaps the most striking change in manufacturing over the past 35 years has been the dramatic shift from single-location operations to multi-state and international enterprises. Today’s manufacturers are more comfortable establishing facilities across state lines, creating networks of production and distribution centers that would have been logistically and financially prohibitive just a generation ago. Many BMSS clients now ship products to all 50 states, while others have expanded their footprint to serve customers in more than 40 countries worldwide.
“The manufacturing clients we serve are increasingly doing work across state lines and manufacturing globally. As our world has become more open, it’s easier for even a small manufacturer to ship overseas or operate in multiple states, which brings complex accounting, tax, and operational considerations.”
— John Shank, Chief Practice Officer, BMSS
This geographic expansion has fundamentally changed how manufacturers think about their finances and operations. What was once a straightforward accounting and tax situation has evolved into a complex web of multi-state compliance obligations, international tax considerations, and strategic decisions about where to locate facilities and how to optimize supply chains across borders.
The Technology Revolution
In addition to geographic expansion, technology has revolutionized just about every aspect of manufacturing operations. The sophistication of software systems available to manufacturers today bears little resemblance to the tools available 35 years ago. Modern manufacturing software tracks production processes with granular detail, monitors sales across multiple channels and geographies, and provides real-time visibility into internal financials that enables faster, more informed decision-making.
Automation and robotics have similarly transformed the factory floor, changing not only how products are made but also how manufacturers think about capital investment and workforce planning. These technological advances have created new opportunities for efficiency and growth, but they’ve also introduced new complexities around technology selection, implementation, and ongoing management.
Looking ahead, artificial intelligence represents the next frontier. While manufacturers may be currently in the exploratory phase with AI, experimenting with applications and beginning to harness its potential, the technology promises to bring another wave of transformation to the industry in the coming years.
Navigating Complexity with Expert Guidance
According to Shank, these sweeping changes have made manufacturing more dynamic and opportunity-rich than ever before, but they’ve also made expert financial and operational guidance more critical. The complexity of operating across multiple states and countries, investing in new technologies, and optimizing operations requires advisors who truly understand the industry’s evolution and challenges.
BMSS’ manufacturing & distribution team can help manufacturing clients navigate these complexities at every stage of the business life cycle. From strategic planning around expansion decisions to optimizing accounting and tax structures for multi-state and international operations, BMSS works with manufacturing leaders to turn challenges into competitive advantages. The firm’s track record includes helping one manufacturing client transform from two consecutive $1 million-loss years into a $1 million-profit year through strategic accounting, tax, and business changes, a testament to the impact that experienced advisors can have when they combine industry expertise with innovative thinking.
As manufacturing continues to evolve, partnering with advisors who understand both where the industry has been and where it’s heading has never been more important. Reach out to the BMSS team to see how we can help you in this ever-changing industry.
