Hiring a general manager for a manufacturing business is one of the smartest strategies for owners not ready to sell but eager to step back from day-to-day operations. If you’re a manufacturing business owner thinking about succession planning, exit readiness, or simply regaining your time, the right GM can transform your company into a stronger, more scalable, and more sellable asset.
The question is: what makes a manufacturing GM exceptional?
Top Skills Every Manufacturing GM Needs
The best manufacturing general managers combine operational discipline with financial sharpness, people leadership, and industry know-how. Below are the key qualities to look for when hiring this pivotal role.
1. Operational Excellence
Manufacturing lives and dies by process. A great GM ensures production schedules stay on track, inventory systems are accurate, and quality control never slips. For example, an effective GM won’t just manage downtime—they’ll implement preventative maintenance schedules to reduce downtime in the first place.
Operational gaps in manufacturing show up quickly as late deliveries, customer complaints, or costly rework. A GM who thrives in operational detail protects your reputation and your margins.
2. Financial Acumen
Margins in manufacturing are razor-thin. A general manager for a manufacturing business must understand financial levers that impact profitability. They should actively track:
- COGS (Cost of Goods Sold)
- Labor efficiency ratios
- Profitability by SKU, product line, or project
For instance, a financially strong GM might notice a 3% scrap rate in one product line and implement changes that save six figures annually. That kind of insight directly increases your valuation.
3. Lean Manufacturing Thinking
A GM with experience in Lean, Six Sigma, Kaizen, or other continuous improvement methods can transform efficiency.
Example: A GM familiar with Lean principles could redesign a plant floor for smoother material flow, cutting wasted motion and trimming labor hours.
Example: A Six Sigma–trained GM may lead a quality improvement initiative that reduces defects by 25%.
These operational improvements don’t just save money—they raise the business’s appeal to future buyers.
4. Leadership & People Management
Manufacturing teams are often large, diverse, and shift-based. A successful GM must:
- Build morale during long production runs
- Reduce turnover by coaching and promoting talent
- Balance empathy with accountability
For example, a GM who institutes a structured shift-handoff process can reduce communication breakdowns and improve team cohesion. In a sector where labor shortages are common, strong leadership is one of the most valuable qualities a GM can bring.
5. Manufacturing Industry-Specific Knowledge
Not all manufacturing is the same. Compliance standards, safety protocols, and supply chain dynamics vary across industries:
- Food manufacturing requires knowledge of FDA standards.
- Aerospace requires ISO and AS9100 certifications.
- Custom machining depends heavily on vendor relationships and precision tolerances.
Hiring a GM who already understands your niche industry means less ramp-up time and fewer costly mistakes.
6. Tech & Automation Savvy
Modern manufacturing is increasingly digital. From ERP systems to robotics to IoT-enabled devices, technology is central to maintaining competitiveness.
A forward-thinking GM will:
- Lead ERP upgrades to streamline operations
- Introduce automation where it improves safety and efficiency
- Use data analytics to track production KPIs in real time
For instance, a GM who champions real-time dashboards can empower supervisors to act on problems before they become costly.
7. Exit or Transition Readiness
Finally, if your long-term goal is to sell, the right GM makes your business more turnkey—and more valuable. Buyers pay more for companies that aren’t dependent on the owner.
Even if you’re not selling today, a strong GM allows you to step back gradually. They keep the business running smoothly while you shift to strategy, new ventures, or simply enjoy more personal freedom.
Conclusion
A general manager for a manufacturing business isn’t just another hire—it’s a transformational role. They protect margins, lead people, embrace technology, and prepare your company for growth or exit.
If you’re serious about scaling or selling, don’t wait until you’re burnt out. Hire a GM with the right manufacturing general manager qualities now, and you’ll build both a stronger company and a more valuable asset.