Why Production Is Killing the Business

Samir, General Manager of a vertically integrated carpet manufacturer in Saudi Arabia, explains what happens when demand outpaces production capacity. Despite premium pricing power and consistent wholesale demand, high labor costs, raw material availability, and logistics delays are limiting how fast the business can scale.

We talk about why production, not sales, is the real bottleneck, how manpower costs change margin math, the risks of expanding capacity under high interest rates, and why exporting improves cash flow compared to relying on local markets. A practical conversation about capacity, cost control, and scaling manufacturing without breaking the business.