The Bottom Line - Banking on Manufacturing

Accelerating cash flow for modern manufacturers

At Country Club Bank, we’ve worked for decades alongside some of Kansas City’s most admired manufacturers—locally owned businesses and publicly held companies alike—helping them grow, modernize, and keep production moving.

These businesses are the backbone of our region and our nation. They create high-quality jobs, invest in equipment and facilities, and give back to the communities where their teams live and work.

Behind every busy plant floor is something less visible, but just as essential: cash flow. It’s what keeps the lights on and the lines running. It pays vendors on time, covers payroll, funds inventory and raw materials, and keeps leases, utilities, and shipping schedules on track. 

When cash moves smoothly, the entire operation runs with more confidence. 

When it doesn’t, friction spots can arise, such as late payments, delayed deposits, reconciliation headaches, and preventable risks.

That’s why we continue to focus intently on supporting manufacturing companies.

In our meetings with manufacturers week in and week out, we’ve observed that the most successful companies today are those that can manage complex cash flows without slowing down. 

Higher transaction volumes, tighter margins, and sensitive global supply chains have made smart cash management more important than ever.

To that end, we’ve developed a set of best practices to consider if you’d like to see cash flow and treasury improvement opportunities more clearly: 

• Start with outcomes. Continuous production and sales are the ultimate goals. With those goals in mind, walk through your entire order-to-cash cycle, from the time an order comes in to the time cash is posted and reconciled.
• Prepare to provide and receive proof of creditworthiness. You need tools to prove your own creditworthiness for purchasing, as well as credit assurances when international buyers are involved. Letters of credit, including standby letters of credit, provide proof that payments can be made and production can proceed without uncertainty.
• Streamline payables. Pay accurately, on time, and with the least friction possible. That may include domestic and international wires, ACH payments, or commercial card options such as purchasing cards and virtual cards to simplify workflows and, in some cases, turn payments into a value driver through rebates. Foreign exchange tools can also help manage currency conversion and reduce exposure.
• Accelerate receivables. Consolidating your payment mix with lockbox services can streamline incoming payments while providing remittance data that makes matching and posting easier. ACH debits and credits, card acceptance, and portal-based payments can reduce delays, simplify customer payments, and improve visibility for your team.
• Automate everything. If you are a high-volume processor, remittance data capture, reporting, and integration with ERP and accounting systems can reduce exceptions and help teams close faster with fewer manual touches.
• Build in risk management and fraud prevention. Security is non-negotiable. Positive pay for ACH and checks, dual control, and regular reviews are core safeguards that work best when implemented as a partnership between you and your bank.

Finally, when cash accumulates, manufacturers often benefit from liquidity solutions that keep funds accessible while putting idle balances to work, such as sweeps, cash pooling, and insured deposit options.

We’re proud to help keep Kansas City–area manufacturers running strong, and we’d welcome the chance to walk through your cash flow cycle with you. If you’d like a closer look at your treasury operations, our team is ready to share our expertise and help you put the right solutions in place.

— Elise Jones, VP, Treasury Sales Manager, Country Club Bank, a division of FNBO, Member FDIC

Economic Insights

Steady markets continue, with interesting signals beneath the surface

As we move through the back half of Q1, the economy is still sending a key signal that growth remains resilient.

While Real GDP rose just 1.4% in Q4, underlying private-sector momentum remains solid. Consumer spending grew at a healthy 2.4% pace, and business investment stayed firm. 

The main drag came from a sharp drop in government spending. Without it, growth would have been closer to 2.8%.  At the same time though, inflation continues to prove sticky, with the GDP price index rising 3.6% annualized. Persistent price pressures may complicate the Fed’s future path regarding short-term interest rates.

Strong fundamentals, muted index performance

Corporate profits remain a bright spot, with S&P 500 earnings growth in the Q4 expected to come in around the low to mid-teens, a pace that continues the pattern of better-than-expected results.

And yet, the S&P 500 has been flat to slightly positive so far this year. That disconnect tells us something important: investors are no longer paying indiscriminately for yesterday’s winners.

A big part of that story has been a rotation away from the largest tech names that dominated returns in recent years. The “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) have experienced meaningful weakness this year, contributing to the sense that the index is going nowhere, even as many individual stocks are doing just fine.

As of this writing, US small caps are up nearly 7%, value stocks are up by over 7%, and non-US stocks are up over 8% (with emerging market stocks up nearly 11%). The bigger message: broadening is back.

Why the economy still has support

Several forces continue to reinforce growth:

• Consumer spending has been strongest at the higher end of income and wealth, and the “wealth effect” remains a tailwind when household balance sheets are sturdy.
• Business investment, especially tech capex, remains a real driver. Even amid valuation debates, companies are still investing heavily in modernization and efficiency, including AI-related infrastructure.
• History shows the second year of a presidential cycle can be supportive, and current tax-policy expectations are that the so-called One Big Beautiful Bill Act may raise real GDP by about 0.6% this year.

Artificial intelligence results continue to unfold

Artificial intelligence is central to today’s narrative because it is expected to raise productivity, margins, and long-term growth. But still, one has to gauge how much is hype?

A timely Kansas City Fed paper from this month notes that while U.S. productivity has improved since late 2022, the gains haven’t yet been broad-based. Although AI adoption correlates with faster productivity growth across industries, it accounts for only a small share of the aggregate shift so far.

That sets up another point worth mentioning: Amara’s Law, which states we tend to overestimate the short-term impact of new technology and underestimate the long-term impact. The investment implication is straightforward: AI may absolutely change the economy, but valuations and cycles still matter in the journey from promise to profits.

Takeaways

We believe that the best approach in today’s market is to remain true to core principles:

• Stay invested. The economy is growing, and earnings are still expanding.
• Stay diversified. Early 2026 is already rewarding broader exposure beyond the biggest names.
• Stay disciplined. Market rotations and volatility are normal and often healthy, particularly during midterm election years and periods of Fed leadership transition

Invest well, be well.

Read or download the full 2026 Wealth Outlook here. You can also check out the latest episode of The Vault podcast featuring Rusty Vanneman, CIO, FNBO Wealth.

— Rusty Vanneman, CFA^®, CMT^®, Chief Investment Officer (CIO), FNBO Wealth

CFA^® and Chartered Financial Analyst^® are registered trademarks owned by CFA Institute. The Chartered Market Technicians Association (CMT Association) owns the certification marks CMT^® and CHARTERED MARKET TECHNICIAN^®, which it authorizes use of by individuals who have completed the CMT Association’s initial and ongoing certification requirements.

The opinions and views expressed herein are those of the author and do not necessarily reflect those of Country Club Trust Company, a division of First National Bank of Omaha (FNBO), or any affiliate thereof. Information provided is for illustrative and discussion purposes only, should not be considered a recommendation, and is subject to change. Some information provided above may be obtained from outside sources believed to be reliable, but no representation is made as to its accuracy or completeness.

Please note that investments involve risk, and that past performance does not guarantee future results. Investment products are not insured by FDIC/other federal agencies; are not deposits of/nor guaranteed by the Bank or any of its subsidiaries/affiliates; and may lose value.

Partnership Profile

Building-to-suit for manufacturers, with financing from Country Club Bank

For Jeff Teague, industrial construction isn’t just about square footage. It’s about helping manufacturers and operators build facilities that keep work moving, today and for years to come.

Teague Construction has developed a niche specialty in serving manufacturing and distribution companies by constructing buildings that meet short- and long-term needs.

“We began in 1966 as a residential framing contractor, but we evolved into a commercial general contracting company around 1979 or 1980,” said Teague. “We like it because most of the clients we work with are business owners who make decisions and want to get things done, just like us.”

Today, Teague and his team specialize in industrial buildings used by manufacturers, warehouse operators, and other growth businesses across the Kansas City region. Teague estimates 65% to 70% of the firm’s work is warehousing and manufacturing, with the rest spanning automotive facilities, repair shops, dealerships, car washes, and convenience stores.

What Teague enjoys most is the entrepreneurial spirit of his clients and how they got into the businesses they’re in.

“Most of them didn’t get into that business on purpose,” he said. “They saw an opportunity. They didn’t know what they didn’t know. An entrepreneur is the ultimate eternal optimist.”

That optimism is part of why Teague is bullish on U.S. manufacturing right now. Even with interest rates elevated, he says many manufacturers are looking ahead with confidence. 

Construction costs, which swung wildly in recent years, have stabilized enough to restore predictability. And he’s seeing clients ready to expand. They’re adding onto facilities, building new space, and preparing for demand.

“I think most of them have a pretty positive outlook on manufacturing,” Teague said. “They’re seeing decreased regulation, prices have stabilized, and we’ve got people now that are wanting to add onto their facility or build a new one.”

Beyond contracting, Teague also develops industrial properties through his own separate real estate development firm, buying land, building facilities, leasing them, and occasionally upgrading existing buildings.

That development experience has shaped how he advises clients on what makes an industrial facility valuable over time. He pays close attention to ceiling height and the mix of office-to-industrial space, decisions that affect usability and resale value later. 

When Maruka USA decided to consolidate operations from multiple location, COO Dan Krawchuk needed a hybrid facility that could handle warehousing and office/showroom needs. Teague designed the space around how Maruka actually works, and kept business moving through the transition.

“Jeff has been phenomenal to work with. Most builders want minimal office and maximum warehouse so the building stays generic, but Jeff was flexible,” said Krawchuk. “We have about 7,000 square feet of office inside a 35,000-square-foot building, and his architects and crew were great. He even put us in a temporary building down the road so we could keep everything flowing while the new facility was completed.”

Krawchuk and Maruka USA have specific business needs, said Teague. But many owners also set up real estate as a long-term asset and lease it back to their operating company. Making the building marketable, in the short term as well as long term, matters.

A banking relationship built on follow-through
That same long-term mindset shapes Teague’s relationship with Country Club Bank.

Teague has worked with Country Club Bank for roughly 20 years and enjoys a full banking relationship that includes his operating accounts and lending for buildings he develops and leases. 

Teague also refers clients to the bank for construction and permanent financing when necessary.

“A lot of banks say they do construction lending,” Teague said. “But there are a lot of banks that don’t fully understand it as Country Club does. They understand the balance between the company they’re loaning money to for the building and the contractor, and it’s pretty seamless.”

And in development, especially when building on spec, where leasing takes confidence, that reliability and credibility matter a great deal. For Teague, another difference in working with Country Club Bank comes down to something simple, and surprisingly rare.

“If they tell you they’re going to do something, then they follow through with what they say, that’s the number one thing you need, and Country Club Bank does that,” he said.

Treasury Solutions Spotlight

How commercial cards streamline security, payables, and reporting

If you’re still paying a meaningful share of expenses by check or ACH, FNBO’s Commercial Card programs may be able to help you modernize payments, strengthen controls, and unlock working-capital flexibility.

At FNBO, we see commercial cards as one of the best ways to drive productivity and security, while adding customizable controls and real-time visibility that many legacy payment methods can’t match.

Here are three paths to smarter spending in your business:

• Commercial Card (Travel & Expense): Equip employees with managed cards for travel and day-to-day business expenses, with reporting that helps you track spend and enforce policy.
• Purchasing Card (P-Card): Shift supplier spend from paper checks to cards to reduce processing costs and improve oversight with customizable controls.
• Virtual Card: Pay vendors with secure virtual card numbers and spending controls designed to reduce fraud risk, increase AP efficiency, and potentially improve cash flow with extended float and possible rebates.

These programs come with several built-in benefits:

• No annual card fee, whether you need 1 card or 500.
• Standard and customizable reporting to fit how you manage your business.
• Fraud mitigation features, such as lockdown controls and stronger payment safeguards.
• Supplier enablement support to help with vendor enrollment in the program.

If you’d like to explore which card model fits your payables and expense flows, connect with your Country Club Bank team to review your spend categories and quick-win opportunities.