The US manufacturing industry has undergone seismic shifts over the last 2+ years. By now, the supply chain interruptions and labor shortages associated with the Covid-19 pandemic are taken for granted. However, many of the challenges that emerged in the manufacturing sector during the pandemic began before March 2020. And they are here to stay. Leaders in the manufacturing industry have come to accept that conditions will not “return to normal.” They are, therefore, innovating new solutions and seeking new technologies to ensure profitability and growth into 2023 and beyond.
Successful organizations will rely on agility, outsourced manufacturing, and digital automation in the coming years to stay competitive. A willingness to embrace these aspects of the industry’s “next normal” is crucial to ensure the success of businesses. A vibrant US manufacturing sector is also an indicator of the overall economy’s health. Manufacturing has the highest multiplier effect of any economic sector—every dollar spent adds $2.74 to the US economy.
Agility is Key
The last few years in the manufacturing industry have been unprecedented. Well-established production processes became obsolete due to supply chain interruptions and labor shortages. As a result, manufacturing firms had to think on their feet. They developed new strategies in response to delays, turned to alternative suppliers, or innovated new processes altogether. This agility will be the hallmark of successful manufacturers going forward, as supply chain disruptions will continue to be a feature of the industry in 2023.
Agility in manufacturing refers to an industry or company’s ability to foresee, attend to, and recover from unexpected changes. In this context, agility is closely related to a company’s leanness and flexibility; organizations must be able to pivot in response to change. Implementing agility requires actions on all levels, including management, technology, and operations. Agile thinking is strategic and has a forecasting nature, and agile manufacturers deal with a turbulent economic environment cost-effectively.
In response to ongoing supply chain disruptions, agility will be critical to ensuring companies’ success. According to industry experts, business leaders predict that several factors will cause supply chain disruptions:
- Fifty percent predict a reduction in the availability of raw materials in the US.
- Forty-four percent predict a slowdown in the construction of new homes.
- Forty-four percent predict disruption to public transport due to a lack of drivers.
According to a 2022 survey of senior manufacturing decision-makers, workplaces and businesses have adapted and kept moving forward despite the exceptional circumstances of the last two years. In particular, they have begun to invest in more resilient supply chains and develop strategic, proactive contingency plans. Agile manufacturers are also seeking out a diversity of suppliers and seeking out technologies that improve efficiency and profitability.
Digital Manufacturing is the Future
Although the manufacturing sector has recovered from pandemic-era challenges more quickly than anticipated, the industry is due for a technological upgrade across the board. Nearly forty percent of manufacturers increased capital expenditures in 2021’s second quarter, and more than half remained steady. This recovery is good news. But like other segments of US infrastructure, manufacturing is overdue for modernization. According to industry leaders, manufacturers need to embrace and accelerate their adoption of digitalization. Manufacturers must meet with their suppliers in an open digital ecosystem to ensure their automation, software, and products all work together, allowing everyone to prosper.
Seventy-four percent of surveyed business leaders assert that adopting new technology is the most important way to prepare for future disruptions and fortify their supply chains. Manufacturing processes will become increasingly digital and automation will be a crucial solution to labor shortages. Industry leaders are leaning into Industry 4.0 solutions. Industry 4.0 refers to several emerging uses of technology in the manufacturing industry:
- interconnectivity
- advanced analytics
- advanced automation
- machine learning
Companies of all sizes and stages of development are undertaking these digital transformations. According to industry leaders, players that do so can weather ongoing supply chain challenges, having moved faster and further than their peers during the Covid-19 crisis. Digital automation is also an agile way to respond to ongoing labor shortages. Manufacturers increase production volume and save time by automating manual, repetitive, and time-consuming processes. Automation eliminates mistakes due to human error and can replace workers in dangerous jobs. More automation equals more safety and stability for employers and workers. This, in turn, increases productivity and profitability.
2023 Predictions
The manufacturing sector surpassed expectations in 2022. Demand and production have hit recent highs, but economic uncertainty and inflation threaten to damage the industry’s success. Supply chain issues, logistics backlogs, cost pressures, and cyber-attacks will affect the industry in 2023 and beyond. But several manufacturing industry trends can “help organizations turn risks into advantages and capture growth:”
- Companies will become more resilient and mitigate risk by investing in advanced technologies.
- Manufacturing processes will be increasingly automated and digitized.
- The labor shortage will continue.
- The cost of raw materials will continue to be high.
The manufacturing industry will continue to expand if it is prepared for these conditions. Investment in digital technologies and a willingness to innovate solutions as they arise will enable the industry to thrive in 2023 and beyond.
Achieve Resilience with Industry Solutions
Companies that aim to succeed amid 2023’s challenges must seek cutting-edge technologies. REA JET produces easy-to-integrate, innovative coding and marking technology. This state-of-the-art technology is designed to be used by businesses of all sizes and in all industries, including:
- automotive
- building materials
- carpet/textiles
- chemicals
- consumer goods
- cosmetics / personal care products
- food/beverage
- machine builders / OEM
- pharmaceutical / medical
- plastics
- steel/metal
- tag/label
- tires
- wood
In 2023, leaders in these industries will pursue Industry 4.0 solutions. REA JET’s coding and marking technology can help produce digital transformations that increase productivity, efficiency, and profitability. Companies need coding and marking systems precisely matched to their processes; REA JET produces a variety of systems tailored to different uses and industries. REA JET’s durable equipment is designed to withstand long-term, daily use in industrial environments. Not only does it facilitate companies’ modern innovation, but it’s also made for the long haul.