Small-scale manufacturers are deliberately choosing to remain small to maintain control over costs and manage cash flow. Workshops in Sher Shah, SITE, Korangi, Landhi, Federal B Area and SITE Super Highway are intentionally limiting their scale.
Sadaqat Shah said, "Our biggest challenge is the rising cost of doing business." Shah explained that installing larger machinery would cause electricity and rental overheads to double immediately.
To stay steady, Shah deliberately keeps output modest with four workers. Small workshops in the SITE industrial area and Korangi melt down reprocessed plastic scrap and granules to manufacture kitchenware and storage items.
Mohammad Nadeem said, "The consumer market for basic plastic items such as plates, bowls, jugs and storage containers is huge." Nadeem added that keeping the operation small allows for the management of daily production without taking on heavy overheads.
Micro-manufacturers also produce polypropylene bags for bulk grain, flour and industrial packaging. Saqib Ali said, "The demand for ultra-thin shoppers for retail is huge, but we operate on very thin margins."
Ali stated that operating a compact unit allows for tight inventory management and the avoidance of long credit lines in the market.
