6 Challenges for Manufacturing Industry In 2023. Last year, was full of surprises for many industries. The global pandemic singlehandedly turned the economy of the entire world on its head for nearly the whole year.
To add to the troubles of the already-challenged manufacturing sector, the disruption caused by COVID-19 together with difficulties from other years has spilled over into 2023.
But despite all this, there’s a silver lining on the horizon. A vaccine to put an end to the coronavirus and a list sharing with you top challenges facing manufacturing in 2021.
Having foreknowledge of the battles awaiting your production company will help you and your team come up with the best strategy to achieve success in this New Year.
So let’s get started.
1. Higher Need for Reshoring
Long before the pandemic, reshoring has always been a hotly debated topic between companies and other stakeholders within the manufacturing supply chain.
However, with the way supply chains were impacted during the quarantine – because of companies off-shoring most of their production processes to overseas countries like China – more companies are reviewing their manufacturing strategy to include reshoring.
2. Increasing Sales and Revenue
This is always an issue not only every year but every single day a company opens its doors for business. Moreso, with the way the COVID-19 crisis made businesses lose several thousands of dollars last year, companies will put extra effort into recouping financial losses incurred from the previous year.
Some manufacturing companies may go about increasing revenue by doubling up on their marketing efforts to increase the number of products sold – which is perfectly fine. However, the first step should have been to create a strategy to start building the business pricing power – even if it is one baby step at a time.
Marketing and sales efforts should then be designed to align with the pricing strategy. In today’s world (and in previous years too), having pricing power is the surest way to enjoy sustainable earnings in the present as well as in the future.
3. Labor Retention/Shortage of Skilled Workers
In this COVID era, all manufacturing facilities should prepare to tackle retention issues among their workforce. Health concerns and unemployment benefits (should it continue) could make it hard to find experienced and motivated workers.
Secondly, with a fair portion of its workers nearing retirement and the increasing use of advanced technology, manufacturing firms are facing a looming shortage of skilled labor. The use of less-skilled and trainable workers that was prevalent in the past is dwindling slowly since newer technology (using machine sensors) now requires a workforce with top-tech skills.
4. Customer Self-Service Capabilities
Next to maximizing their revenue and profit, another thing most manufacturing firms prioritize is delivering their products to customers on time. The high focus on these three areas of business has caused customer self-service in the sector to suffer badly.
Although, the digital age has made customer self-service portals available for this sector, still, it is not commonly used. Customers have to use phones to get in touch with most manufacturers for updates about their orders, request for new proposals, and any needed information. Something customers found extremely frustrating.
The manufacturing industry has three customers: partners (or service producers), sub-contractors, and end-customers. In this present digital world, people want immediate access to information and they don’t want to have to go through a person every time they need it.
By keeping the needed data for customers in a self-service portal, an end-customer could quickly retrieve a solution and a sub-contractor could easily track and accept tasks assigned to them without bothering anyone.
5. Navigating Changing Regulations and Laws
Every year, there’s always the possibility that laws could change, be removed, or be updated, so you have to ensure you are on top of recent happenings in your industry and geographical region. Companies in countries (e.g. the US) where a new government just came to power should keep an eye out for changes in the legislation and be prepared to handle them.
6. Maximize Automation
Now that the coronavirus has made social distancing a must, regulations and health concerns may require companies to have lesser staff present on the premises at any given period of time.
Therefore, to cover for the reduced number of staff and still keep up with the production level, companies would be exploring the implementation of more automation technologies. Some automation technologies that are already in use in the industry include collaborative robotics, internet of things, artificial intelligence, and autonomous material movement.
6 Challenges for Manufacturing Industry In 2023, Profits resilience is the result on your business addresses its main challenges
If you want more information on how to improve your profitability, don’t hesitate to reach out to us.