The State of the 2022 Manufacturing Industry

The manufacturing industry is making a comeback, regardless of the labor and supply chain challenges. To keep up, manufacturers are learning to navigate new risk exposures while sustaining their priorities. There are industry trends that organizations should use to capture growth. Despite the difficulties and obstacles the industry has been going through and will continue to go through, there is also growth and progress on the horizon. Here are the leading manufacturing trends that the industry leaders are looking to stay up with.

Preparing for Workforce Shortage

Productivity is projected to take a hit due to the record number of unfilled jobs. To attract and retain talent, it can be helpful to combine strategies such as reskilling with a recasting of the employment brand. It is advised to close any gaps in the industry's public perception by making manufacturing jobs more desirable. Manufacturers should consider engaging with a broader talent pool to reach diverse and skilled individuals who can help offset the recent wave of retirements and voluntary exits. It is important to balance retention, culture, innovation, and flexibility goals. Explore ways to manage the workforce shortages to meet talent's evolving needs.

Remaking Supply Chains Beyond the Next Disruption

Supply chain challenges continue to unravel globally. This adds further expenses for manufacturers and forces them to learn to adapt. Complications arising from high demand, rising materials and transportation costs, and slow deliveries are common. How will you be quick on your feet? Demand is so much higher than supply, which directly impacts the costs for customers. There is an overreliance on low inventories, and the domestic capability is being exhausted. Manufacturers can use digital supply networks and data analytics to help cope with supply chain instability and become more flexible.

Digital Technology Adoption

Manufacturers can capture growth by embracing digital capabilities on the factory floor. Smart factories are driving competitiveness and bringing in long-term profitability. It is in your best interests to remain connected, reliable, efficient, and predictive. Scaling up from isolated in-house technology projects to full production lines is the evolving vision for manufacturers. It is your best bet to stay up with the times of execution. Cloud computing is considered foundational technology these days and will help you not become buried in the industry.

Preparedness for Rising Treats

High-profile cyberattacks are ever-increasing, so strong risk management is essential. Manufacturers are at risk for ransomware and must secure operational technology (OT), information technology (IT), and external networks. Is your technology purpose-fit for the current sophisticated network vulnerabilities? It is no longer an option not to have top-notch cyber defenses.

New Resources and Advancing Sustainability

Environmental and social awareness is at an all-time high, and therefore manufacturers should assess their sustainability efforts. Make it a priority to remain competitive and keep up with expectations regarding diversity, equity, inclusion, and environmental issues. You can progress slowly but show that you are making those efforts. Your partner and customer are likely to hold you accountable to keep up with regulations. Mishaps are inevitable, so consider the importance of manufacturing insurance.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!