The Perfect Storm: Material and Labor Shortages Pose a Unique Challenge to Manufacturers. How will you respond?

Findings from the Institute of Supply Management (ISM) forecast a steady growth of at least 7.2% for the manufacturing industry, yet while over half of producers expect growth within the coming year, labor retention is also expected to remain as a crucial challenge in today’s supply chains. Despite the steady growth, researchers still estimate that as many as 2.1 million manufacturing jobs will remain unfilled until the turn of the decade. This is due to multiple factors such as:

• Lack of manufacturing experience – Over a third of manufacturers claim it’s more difficult to find experienced talent today compared to 2018.
• Negative perception on automation – While many corporations are seeking to automate their plants, robots are not likely to replace all human jobs despite popular belief.
• Lower wages and high expense – Low federal wages for otherwise cyclical tasks diminish the chances of a position being filled, especially in the post-pandemic landscape where entry-level labor is in high demand across all industries.

In addition to labor shortages, high-demand materials such as silicon and semi-conductor chips are also in short supply, adding more strain to manufacturers. To embrace the expected growth estimated by researchers, supply chains have turned to scalable automation, visibility, and connectivity as the keys to remain competitive in the digitized era.

What Happens when You Boost Automation, Visibility, and Connectivity?

While every business is inherently unique, there are three common factors that have been shown to consistently enhance profitability and adaptability in today’s supply chains. That’s why SMG3 recommends…

1. Prioritizing intelligent automation of cyclical tasks – Over 90% of warehouses still rely on human involvement for repetitive tasks, resulting in disengaged workers and higher risks of data entry errors. On the other hand, automated systems such as intelligent data capture embedded within mobile computers can help eliminate cyclical workflows while accelerating throughput without errors.
   
2. Securing a scalable modernization pathway – Because changes are certain to happen to your business, scalability and flexibility are crucial to make sure your operations can respond proactively to new disruptions. Services such as SMG3 Edge add an additional layer of scalability to modernization solutions by empowering operations with performance metrics, asset location, and proactive analytics.
   
3. Connecting steps in the supply chain to prevent surprise hiccups – Future-forward systems such as blockchain connectivity depend on sustainable networking available across the supply chain. From the production floor to the last mile, SMG3 keeps teams connected with Visibility through Mobility^TM. Mitigate connection drops and complex maintenance schedules with a dedicated team to develop one standard workflow that’s accessible from anywhere at any time.    

As technology continues to mature, it is only expected that new challenges will arise. Reach out to SMG3 today to see how you can equip your operations with next generation efficiency to transform today’s obstacles into tomorrow’s opportunities.

…

Related Posts