As we celebrate Manufacturing Day on Oct. 4, it's a fitting moment for manufacturers to reflect on their existing operational strategies and to set the stage for future success. The past few years have tested manufacturing with numerous challenges, including a global pandemic and resulting supply chain disruptions, economic volatility, and geopolitical tensions. This year’s celebration offers an opportunity to turn those challenges into catalysts for innovation and growth.
Manufacturing leaders have a lot to be optimistic about, with over 68% of executives feeling positive about their company's outlook. Although industry growth is expected to remain stagnant or contract slightly through 2024, experts predict output will recover next year and remain steady through 2028.
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To capitalize on this positive outlook and drive sustained success, manufacturers can benefit from a focus on three key areas: leveraging emerging technologies, embracing nearshoring, and investing in their workforce.
Leverage emerging technologies
Manufacturing Day serves as a reminder of how far industry has come in adopting new technologies. To stay ahead, manufacturers must continue to integrate automation and the latest digital solutions into their operations. Implementing robotics on the factory floor, for example, can significantly enhance efficiency and accuracy, addressing ongoing labor shortages.
AI is becoming increasingly powerful and useful for manufacturers. AI can be used to detect defects and anomalies early in the production process. Machine learning algorithms can predict equipment failures, minimizing downtime and optimizing production schedules.
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And that’s just the beginning. With more use cases sure to emerge in the years to come, it’s imperative for manufacturers to build a strong foundation that enables easy integration of AI and machine learning into their operations.
Embrace nearshoring
Manufacturing Day also offers a prime opportunity to reassess supply chain strategies, especially given the risks of relying on long and complex global supply chains. In 2023, 77% of manufacturing executives reported that they had suffered recent supply chain disruptions, and many are continuing to feel the burden in 2024.
Nearshoring—bringing manufacturing operations closer to North America—can mitigate the risks inherent to global supply chains by reducing exposure to geopolitical uncertainties. In addition to potentially reducing costs, nearshoring can help to revitalize North American manufacturing hubs, contributing to job creation and economic growth.
The benefits of reshoring are reflected in the resurgence in manufacturing-related construction spending, which hit a $210 billion annual rate in November 2023, in part due to the growth of emerging markets like electric vehicles. That average annual rate, which is more than three times what it was in the 2010s, shows that nearshoring is already well underway and is likely to continue as manufacturers seek to enhance their supply chain resilience.
Close the skills gap and invest in your talent
The human element remains crucial in manufacturing. A recent study shows that U.S. manufacturing could require 3.8 million jobs to be filled within the next decade, making it increasingly important for manufacturers to address the workforce and skills gap.
Manufacturing Day is the perfect time to reflect on the various approaches available to address this and attract and retain more employees. One way to invest in the workforce is by partnering with more educational institutions to offer future workers—like students—hands-on experience with modern technologies.
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Offering robust training programs and competitive benefits packages can also help manufacturers build and maintain a motivated and skilled workforce. To reduce employee turnover rates, it is also worth considering instituting loyalty bonuses and making sure employees have clear career progression paths.
Celebrating our industry
While Manufacturing Day is an ideal moment for companies to assess their progress and prepare for the future, we must also take time to celebrate the people who push manufacturing forward every day. From the engineers developing new solutions to the factory workers who ensure products are developed on time, and everyone in between, I thank you.
By advancing technology adoption, exploring nearshoring opportunities, and nurturing the workforce, we can position the industry for more growth in the years to come. Embracing these strategies will not only help us overcome our current challenges but also pave the way for a better future, with a thriving and innovative manufacturing sector.
