Top 5 Challenges in the Manufacturing IndustryPublish Date: May 4, 2022
After two years of sluggish growth and several declines due to the global pandemic, the manufacturing sector has displayed resiliency and innovation. This sector is expected to grow despite the challenges in the next few years.
The development of the manufacturing industry is influenced by advancing technology. With the help of automated solutions, this industry has managed to progress. However, the following are some of the internal challenges manufacturers still face.
Supply Chain Disruption
Supply chain disruptions are one of the biggest challenges that manufacturers face. Supply chain issues have hampered the manufacturing sector more than the rest, with the lowest inventory levels in all these years. Offshoring products to other countries combined with the pandemic effects and shipping delays have led to massive supply chain disruptions. Domestic production is also struggling to keep up.
The supply chain management issues have brought several vulnerabilities in the ‘real-time’ manufacturing mindset to improve efficiencies. However, it left few companies striving to catch up after the demand increased faster than expected due to the Covid-19 pandemic.
The lack of skilled workers is yet another challenge the supply chain industry faces. This has led to the inability to fill the existing manufacturing jobs and disruption in manufacturing, warehousing, distribution, logistics, and others.
Due to the labor shortage, the manufacturing sector was struggling to fill in the available job openings in the pre-pandemic era, and this is still going on in the post-pandemic era. While automation and robotics are helping to fill the skill gap to an extent, workers are still needed to apply problem-solving capabilities and analyze and manage production.
To solve the labor issue, some manufacturers have joined hands with the local community and technical schools. They have also offered internships to the talent with full-time employment the offer. Some have assisted in developing programs and training candidates to create a product from scratch.
Manufacturers need to get creative in attracting the workers by connecting with them online, if not physically. The manufacturers need to remember that the young talent is looking not just to work but for positive work culture and community wellbeing. The manufacturers can promote their companies by using social media platforms and videos to highlight their workplace culture and other positive aspects to lure young talent.
Keeping Up with New Technologies
Technology is evolving at a blitzkrieg speed. Right from automation to robotics and cloud computing, we have it all. Manufacturing companies find it challenging to keep up, let alone be on the leading edge. By the time the IT departments of the company research, get approvals, and purchase and install new technologies, a more agile solution comes into being.
The Internet of Things (IoT) is one of the most preferred technologies in the market, and the demand for this one is simply growing with each passing day. According to reports, the IoT market will likely grow almost five-fold by 2028 at a CAGR of 25.4%.
This technology is backed by 5G connectivity and advanced sensor technology. When the manufacturing sector adopts this technology, it will witness opportunities to boost productivity, enhance product quality, lower costs, and streamline project management.
As IIoT and intelligent systems gain popularity, there will likely be an increase in the amount of data these manufacturing companies will generate. The need of the hour is the ability to analyze these data. Updated Enterprise Resource Planning (ERP) technology can enable manufacturers to manage data volumes and come up with insights for better decision-making.
Inability to Cover Up Demand and Supply
With the pandemic changing our lifestyle, social distancing is a mandate, which has compelled the manufacturing companies to follow a hybrid work model. This makes it difficult for the companies to cover up the demand and supply demands with reduced staff. Some of the automation technologies used by the manufacturing industry are the internet of things, artificial intelligence, collaborative robotics, and autonomous material movement. Companies need to explore increasing the usage of automation technologies.
Navigating Changing Regulations and Laws
Each year, there is a probability that the laws may change. While some laws may be removed, there may be others that may be updated. So, manufacturing companies need to stay upbeat with these new changes.
With so many challenges looming large in the manufacturing industry, this sector has ceased to grow and is witnessing an upward trend. With the right technology in place, the right expertise, and the right solution providers, this industry is likely to become stronger than it is at present.
Why partner with YASH?
YASH Technologies will help you transform your manufacturing business by optimizing the operations, synchronizing processes, supply chains, and customer demand. Besides these, YASH will help you by leveraging greater automation, accelerating your production cycles, and offering real-time insights. This will help you adapt to disruptions with agility and ensure positive outcomes on your balance sheets.