when a ramp up comes up in press releases or on conference calls it typically signals management confidence in the future of the business however the prudent investor should be on the watch for too much exuberance 
ramping up vs ramping downa ramp down refers to a decrease in production usually due to a predicted fall in demand or business activity ramp downs are common in seasonal industries where workforce reductions are part of the normal business cycle in order to process final paychecks and benefits employers will typically retain a small core of administrative personnel as the company ramps down ramping down may also be an expected consequence of a company that is offshoring or downsizing its production even after the company begins terminating its workforce it will continue trying to extract as much value as possible from the remaining machinery and industrial capital keeping a small part of the workforce in action examples of ramp upsthe term ramp up tends to roll off the lips of confident executives who expect favorable economic conditions overall leading to brisk demand for their products rarely will a company publicly state that it is ramping down in a 2021 press release general motors outlined plans to increase deliveries to match increased consumer demand in canada and the united states according to the release another example occurred during an earnings conference call of saputo inc a canadian manufacturer of milk dairy products and dairy alternatives in the company s third quarter earnings call of 2021 ceo lino anthony saputo said he was in other words the ceo appeared to be anticipating increased demand from u s consumers sufficient to justify increasing production and exports to the american market ramp up faqsthe term ramp up is similar to terms like scale up or step up each expression signifies moving to a higher tier of production volume and efficiency ramp up is a common corporate term in companies seeking to achieve productive growth it is most commonly used in start up stage companies that are only beginning to market their products as new entrants to the market these small companies are most likely to be ramping up however even large companies may find it necessary to ramp up as they expand to new product lines or new markets ramping up production requires careful planning and market study in manufacturing it is necessary to study the process and machinery in order to optimize production for higher scale the most crucial element of a ramp up is ensuring sufficient market demand for the product 3in venture capital financing ramping up refers to an increase in output prior to the exit of a financial backer in this context the venture capitalist waits for an increase in productivity or sales to raise the value of the company before selling their shares 4the bottom linea ramp up is one of several corporate terms used to describe an increase in production or sales by a company seeking to capture a greater market share most production costs tend to decrease at high volume thanks to economies of scale as a result a well executed ramp up allows most companies to reduce their per unit expenses and increase their profit margins 