The Canadian wood manufacturing sector faces one of the toughest economic climates we have seen in many years. Rising costs for raw materials, volatile tariffs, and unpredictable demand have created a perfect storm for wood product companies.
These turbulent times can trigger an assortment of actions by leadership, including:
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- Do nothing and wait for things to settle down
- Lower overhead by reducing staff
- Delay capital investments
- Cut prices to be more competitive but with reduced margins
- Charge customers more for their products
- Implement a combination of the above
- Surrender and close down the business
All of these options are short-term fixes, and none will create long-term success and growth – most assuredly shutting down shop.
Let’s add another and more effective option to this menu of choices. While the short-term options listed above may help you successfully navigate the present-day economic challenges and uncertainties, they will not take your company to the next level of efficiency and profitability. Instead, consider transforming your business using a proven effective business transformation methodology called Lean that allows you to do more with what you already have.
Why Lean?
Lean isn’t a fad. It’s a proven business improvement system used by manufacturers worldwide for decades, from automotive giants to small custom shops. At its core, Lean focuses on eliminating waste, optimizing processes, and improving flow -- all without the need to make massive investments in new equipment or technology.
In tough times, Lean becomes even more valuable because it helps you:
- Free up capacity without hiring more people
- Reduce costs without sacrificing quality (increase profits)
- Shorten lead times to keep customers happy
- Lower inventory and working capital
- Open up space for future expansion
- Boost staff morale
- Increase customer satisfaction
Instead of cutting muscle, Lean cuts fat.
The hidden opportunity in tough times
When the economy slows, every dollar counts. Many wood manufacturers unknowingly lose thousands each year to inefficiencies such as:
- Machines sitting idle because of long setups
- Employees waiting for material or instructions
- Excess inventory consuming valuable shop space and tying up cash
- Rework caused by inconsistent processes which also creates scrap
These aren’t small issues; they are silent profit killers. Lean helps you see and fix these problems permanently.
Practical Lean for wood manufacturing
Applying Lean doesn’t mean shutting down your shop for weeks or making huge expenditures on automation. It starts small and gains momentum quickly. Here are a few practical steps:
- Value Stream Mapping: Visualize your entire process to identify bottlenecks and future direction.
- 5S Workplace Organization: Create a cleaner, safer, and more efficient shop floor.
- Quick Changeovers: Reduce machine downtime by streamlining setups.
- Standardize Work: Ensure consistency and reduce rework.
These improvements pay back quickly — often in weeks, not months.
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Larry Coté is managing director and founder of Lean Advisors Inc. Lean Advisors is a Lean consulting group serving North America in manufacturing, healthcare, government, educational institutes, and service sectors. Over the past few decades, Larry has had the opportunity to adapt and apply Lean to hundreds of companies, in a variety of unique environments, ranging from international corporations to small businesses, in both public and private sectors. He is also a frequent presenter at conferences and webinars including the 2023 Woodworking Machinery & Supply Conference & Expo.
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Julia Novik is president of Lean Advisors Inc. and a Lean Six Sigma Green Belt. Julia’s passion for Lean started with making a difference in improving patient care by transforming healthcare processes with Lean initiatives. Her career expanded into launching consulting practices and merging her lean consulting with Lean Advisors. Lean Advisors, a leading Lean training and consulting company founded in 1999 provides support for small to medium size businesses and is a member of Wood Manufacturing Cluster of Ontario.
Learn more at leanadisors.com.
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About the Woodworking Machinery & Supply Conference and Expo
For more than four decades, WMS has connected Canada's woodworking professionals with the world's most prominent machinery manufacturers and industry suppliers. This year's show, November 12-14, moves to the Toronto Congress Centre located minutes away from Pearson International Airport. In addition to being the largest tradeshow, WMS 2025 will feature free industry best practice presentations plus the opportunity for attendees to earn CEUs by attending some of the sessions Also on tap are the returns of Student Day and the popular WMS Live Auction.
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For information about exhibiting and sponsorship opportunities, contact Gavin McAuliffe of Corcoran Expositions at 312-265-9649 or [email protected]. For general inquiries, contact Kim LeBel, Executive Director - Events, [email protected].
More Woodworking Network events
Wood Pro Expo Lancaster, Oct. 23-24, 2025, Spooky Nook Sports/Warehouse at the Nook Hotel, Manheim, Pennsylvania.
Closets Conference & Expo, co-located with Wood Pro Expo Florida, June 30-July 2, Palm Beach County Convention Center, West Palm Beach, Fla.
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