Every good business owner knows that working capital is necessary to keep operations running. It is what allows the business to meet its financial obligations, like paying its employees, creditors and suppliers. Companies with insufficient working capital are very likely to have issues with liquidity down the line despite having healthy profits.

Manufacturing companies especially require a sharp eye for monitoring and making sure working capital is healthy. Supplier and production expenses usually come months before the goods produced are sold to consumers. Manufacturers have working-capital management plans designed to anticipate and solve these issues. According to the PWC Working Capital Survey, since 2016 manufacturing has fared significantly better than other industries in terms of working capital performance.

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