For manufacturers, the journey to sustainable growth is full of complexity. From managing tight margins and unpredictable supply chains to navigating capital-intensive investments, every decision echoes across the financial landscape of the business. Operational success depends on more than just production know-how—it requires financial expertise and leadership. But for many small to mid-sized manufacturers, hiring a full-time CFO isn’t economically feasible. That’s where a fractional CFO—a part-time, high-level financial expert—can step in to transform the business.

Here are five key signs to determine if bringing in a fractional CFO can help drive operational excellence and long-term value.

1. Tariffs are Not Being Managed Proactively

In 2025 the federal government introduced sweeping changes to international tariff policy, ushering in a period of increased complexity for managing manufacturing costs. To add to the upheaval, after the tariffs were announced many were postponed or modified, and each week seems to bring further changes and adjustments.

For manufacturers who rely on globally sourced raw materials and components, it is a critical error to sit back and wait for clarity. A fractional CFO can develop a flexible and proactive strategy that expands and diversifies the supplier base, enabling the manufacturer to nimbly adjust tactics as the tariff landscape changes. The plan should include internal efficiency improvements that reduce the impact of supply chain costs on the overall cost of goods and services. And a fractional CFO can lead efforts to engage with policymakers, adding real-world perspective that can shape tariff-related government policies.

2. Financial Strategy is Missing for “Crossing the Chasm”

Every growing manufacturing company encounters the famous chasm that Geoffrey Moore wrote about—where continuing the same old tactics produces diminishing returns.

Accountants and bookkeepers may be doing an exceptional job managing the day-to-day tasks and closing the books, but this often doesn’t translate to contributing strategically at the executive level. A fractional CFO is able to think and act strategically, and can build a plan that gets the company to the other side of the chasm. The fractional CFO is experienced in pulling together a financial plan to address strategic challenges. How do you size new and adjacent markets and put together a plan to profitably penetrate them? How can you double or triple your capacity? How does this impact staffing, outsourcing, and infrastructure? How can you finance the investment required for this growth? Is there an M&A path to pursue? If the company is wrestling with at least one of these issues, it’s time to talk to a fractional CFO.

3. Cash Flow Management Feels Like a Constant Fire Drill

Manufacturing operations demand constant investment – raw materials, labor, equipment, and inventory all tie-up significant capital. Companies that are constantly juggling cash to meet payroll, buy materials, or cover vendor payments are reacting to problems rather than proactively managing them.

A fractional CFO brings structure and foresight to a business’ cash flow. They create tailored forecasting tools, optimize inventory levels, and implement disciplined payment and collection strategies that support long-term stability. With a clear view of the working capital cycle, leadership can properly support new initiatives without risking daily operations.

4. Leadership Transition is on the Horizon

Whether companies are preparing for the exit of an owner, succession planning, shareholder buyout, or positioning the business for acquisition, moments like these require more than intuition. They demand deliberate financial strategy, robust reporting, and an eye toward building enterprise value.

A fractional CFO can guide leadership through this transition. They can help improve financial reporting systems, identify operational inefficiencies, and ensure that the business is attractive to buyers, investors, or successors. With the right partner, manufacturers are not just boosting current profits, but building a business that’s resilient and valuable.

For organizations that are thinking about the next chapter but don’t have a financial roadmap, a fractional CFO can help turn vision into actionable plans.

5. Hiring a Full-Time CFO Isn’t Financially Viable

Let’s be honest: CFOs are expensive. Many small to midsized manufacturers can’t afford a full-time executive salary, especially when the need for high-level financial expertise fluctuates. A fractional CFO provides the best of both worlds: strategic insight and executive leadership without the full-time cost.

This flexible arrangement allows businesses to access support as needed. Whether it’s for eight hours a week or two days a month, manufacturers can get access to expert financial guidance tailored to the company’s stage and goals.

Conclusion: Financial Leadership Is No Longer Optional

In today's manufacturing landscape, the companies that win are the ones that can link operational decisions to financial outcomes. That requires more than bookkeeping and reporting – it demands leadership, insight, and strategy.

A fractional CFO isn’t just an external accountant. They are an integral part of the executive team, focused on turning complexity into clarity and helping to build a financially sound, operationally efficient business.

Manufacturers that are struggling with a tariff strategy, hitting a growth plateau, suffering from cash-flow inconsistencies, or are in need of transition planning are all candidates for a fractional CFO. The right person will not only improve financial systems but transform the entire organization’s performance—from the factory floor to the boardroom.

Mike Sibley has over 25 years of experience as a certified public accountant. While he has served organizations representing various industries, his primary focus is on manufacturing clients and he leads James Moore’s Manufacturing Services Team. Mike’s emphasis is on audit and tax services. He provides services requiring complex tax and consulting strategies such as R&D credits, inventory costing and developing overhead pools. As a Certified Black Belt in Lean Six Sigma, Mike uses LSS principles to increase efficiency and improve results when working with clients.