Q3 2024 in Manufacturing: What Went Down, and Why We’re All a Little Scratched Up

By: Ben Hackley, Fractional CFO

Welcome to the third quarter wrap-up of 2024 in manufacturing—where costs never stop rising, profits get a little unpredictable, and somehow, we all keep the wheels turning.

If you think you’re the only one wondering why it feels like a game of financial Whack-A-Mole out there, you’re not alone.

Here’s what went down, and why it’s more important than ever to get your numbers right.

Sales Were Up, Right? Wrong.

Let’s talk numbers. Flex reported a slight decline in net sales, dropping from $7.76 billion in 2023 to $7.1 billion this year.

That’s a 9% dip for anyone doing the math. It’s not catastrophic, but it does feel like someone quietly siphoned a bit of gas out of the tank when no one was looking. Why? You guessed it—rising costs and good ol' supply chain woes.

Meanwhile, Emerson’s total sales hit $4.38 billion, with a decent 3% bump in underlying sales. Sounds good, right? But hold the confetti—pretax earnings took a nosedive.

It’s like celebrating you got a raise, only to realize inflation just ate half of it.

Operating Income: The Silver Lining?

Now, don’t cancel the victory parade just yet.

Despite sliding sales, Flex managed to increase its operating income.

That’s right, they squeezed more juice out of the orange.

This tells us that those who tightened the belt a little and leaned into cost management actually came out with a few extra dollars in their pocket.

It’s proof that efficiency still wins when the market plays hardball.

Let’s Talk Margins—And Why They’re Still Stubborn

Margins in Q3? Yeah, they’re still giving manufacturers headaches.

Materials cost more, labor isn’t getting cheaper, and supply chains feel like they’ve been hacked by chaos itself.

The lesson here is clear: if you’re not watching your costs and staying lean, you're risking those margins even more.

Automation and Tech: The Lifeboat You Can’t Ignore

Here's the kicker. You know what saved the quarter for some companies? Automation.

If you’re still thinking about whether you should dive into AI or machine learning, stop thinking and start doing.

It's the manufacturers who embraced these technologies that managed to weather the storm and even position themselves for growth.

Yes, it's pricey up front, but what's more expensive is doing nothing and watching your competitors lap you.

So, What Should You Do?

Take a cue from Emerson and Flex: cut what you can, but do it smartly.

Streamline your operations, automate wherever possible, and track everything.

Get a financial strategy that doesn’t just predict but actually steers the business.

I can’t stress this enough—keeping an eye on those P&Ls, balance sheets, and forecasts is no longer a “nice to have,” it’s survival.

Final Thought: Stop Flying Blind

If you don’t have a handle on your costs, it’s like trying to drive cross-country with a blindfold on. Get real with your numbers, automate what you can, and remember—profit doesn’t just happen by accident.

The third quarter of 2024 was rough, but the companies with a grip on their financials are the ones who made it through. Will you be one of them?

Hey, I’m Ben Hackley, a fractional CFO with over 30 years of experience in corporate finance. I help manufacturing SMBs get their finances in order, optimize cash flow, and drive profitability—all without the overhead of a full-time CFO.

Whether you’re growing fast, struggling with messy financials, or navigating an acquisition, I bring real-world solutions to keep you in control and on track.

Let’s turn your financial data into a tool for smarter decision-making and long-term growth.