As you navigate a year marked by sharp swings in policy, costs, and demand — alongside nagging questions surrounding aging ownership/board demographics, timing of ERP replacements, and consolidation considerations — it’s worth taking a step back to assess the fundamentals that keep your operation steady.

“Before the pace accelerates, we recommend evaluating the core areas that drive both daily performance and long-term stability: your people, your leadership and ownership plans, and the systems that run your plant,” advises Derek Wagoner, biofuels business advisor.  “Operations who reevaluate these areas reduce risk, support continuity, and position their operation to respond confidently to whatever the market brings.”

7 Ways to Build Resilience

1. People: Reassess your employee benefits package

Talent stability is becoming a higher priority as consolidation continues, ownership demographics shift, and operational complexity increases. A competitive benefits package can play a critical role in retaining key employees through volatile cycles — especially as margins tighten and operating conditions change quickly. Take time to evaluate whether your current benefits still support recruitment, reduce turnover, and protect critical institutional knowledge.

2. Succession: Formalize succession and ownership transition plans

Succession is one of the most pressing concerns for plant owners today — not only for internal leadership roles, but also for major investors whose life events, exit strategies, or estate transitions can influence governance and operational stability. As ownership transitions and consolidation shape the next phase of the industry, having a documented plan for leadership continuity, board transitions, and investor changes is essential. Clear succession planning helps avoid decision-making gaps and operational disruption during periods of market stress.

3. Technology: Evaluate ERP and operational systems readiness

ERP replacements are top of mind for many producers as systems reach the end of their lifecycle at the same time regulatory, reporting, and traceability requirements are increasing. Ask whether your current technology still delivers the visibility, accuracy, and operational insight you need. Reviewing your ERP, data workflows, automation tools, and system integrations helps ensure your technology supports efficiency and compliance — rather than becoming a constraint.

4. Structure: Review your tax structure and business setup

With policy shifts and credit-driven incentives influencing profitability, now is an appropriate time to revisit whether your current business structure — such as an LLC versus a C corporation — still aligns with your long-term goals. The right tax structure can significantly affect cash flow, succession planning, and future growth, particularly as more plants consider consolidation, recapitalization, or generational ownership transitions.

5. Financials: Strengthen cash flow planning and liquidity strategies

In a market as price- and policy-sensitive as biofuels, maintaining strong liquidity is critical. Many producers rank cash flow survival during down cycles as a top priority. Reviewing working capital levels, debt structure, credit capacity, and stress-test scenarios can help ensure your operation can withstand sharp swings in feedstock costs, margins, and credit values. Disciplined financial management also builds confidence with lenders and investors.

6. Safeguards: Refresh risk‑management and hedging practices

Volatility continues to define the biofuels industry. Operations with disciplined hedging practices and clearly defined risk management governance are often better positioned when markets shift unexpectedly. Reviewing how you manage margin protection, pricing exposure, operational risk, and financial risk can strengthen resilience regardless of market direction.

7. Stakeholders: Revisit governance and board readiness

As consolidation accelerates and investor turnover increases, strong governance becomes even more important. Take time to evaluate:

  • Whether board roles and responsibilities are clearly defined
  • How decisions are made during periods of volatility
  • Whether governance structures support long-term stability rather than reactive decision-making

Strong governance supports smoother transitions and provides assurance to investors, lenders, and strategic partners.

Preparing for what’s ahead doesn’t require major overhauls — it starts with strengthening the foundation you already have. By reviewing the people, systems, structures, and financial strategies that support your daily operations, you can reduce risk, protect cash flow, and maintain stability even in a volatile environment. Small steps now help ensure your business remains resilient, confident, and ready for whatever shifts the market brings.

Reach out to a Pinion biofuels advisor for support evaluating these areas or identifying the most impactful next steps for your operation.