The manufacturing sector is the central hub that supports the existence and operation of virtually all businesses. Manufacturing processes form an integral part of the entire supply chain which is highly beneficial to the growth of smaller companies and the economy in general.
There has been a paradigm shift in operations within the manufacturing sector due to the use of innovative technology that can speed up processes and eliminate delays. However, the manufacturing industry does still face potential challenges. Three key challenges that remain define the otherwise-promising future of the manufacturing industry.
The introduction of new technologies has dramatically impacted the manufacturing sector in positive ways. As manufacturing companies strive to make their operations leaner, they have to put to use the various innovations that have been developed and availed to the market.
The primary challenge of these technologies is that they tend to raise the immediate operational costs for manufacturing companies. The cost of acquiring and maintaining manufacturing technology for boosting internal production processes is high. Such expenses will remain high until the adopted technology stabilizes and offers the appropriate ROI.
Destabilization of labor
Labor is a significant entity that helps keep manufacturing companies fully operational and producing to the maximum. As the baby boomer generation gradually exits the workforce, they’ll be taking valuable skills with them. According to a study by Deloitte, experts anticipate that over 4.6 million manufacturing jobs will become available over the next decade.
Over half of these positions are expected to remain vacant due to the absence of top-quality skilled labor and competency. The resulting gap in skills is expected to eat into manufacturing companies’ revenue as a consequence of a slowdown of production.
Cybersecurity is not only a personal issue but has also become an issue for large-corporations which affects manufacturing companies. The rising threat of cyber theft through ransomware attacks is almost certainly going to impact the manufacturing sector in the future. What puts manufacturing companies on-the-spot is that most businesses have been relying on outdated cyber safety systems that are incompetent compared to the potent modern-day cyber-attacks.
Another related issue for which companies must be on their toes is the issue of intellectual property rights. The theft of manufacturing companies’ secrets and the consequent leakage into the black market is a top challenge for the future. This potential challenge should be confronted by employing top-notch data and cyber safety mechanisms.
The future of manufacturing is bright, but certain challenges must be overcome. Companies looking to get a head start on solutions to these issues will be at the forefront of the manufacturing industry.