The Future of Global Manufacturing - Worldwide Trends in 2022 and How to Approach the Same
The previous set of 2-3 years has been unique to the global manufacturing industry; thanks to the pandemic.
The fluctuating market conditions brought a lot of changes to the way manufacturing companies function; both temp and permanent.
Adapting to change is the only secure way to ensure growth. Since the raving economy shows no sign of slowing down in 2022, we at M&M wish to assist you in your preparations for the future.
Let us analyze the current major trends in the manufacturing marketplace, and discuss how you can approach the same for safeguarding your business’s profitability.
1) Increasing Demand, Accelerated Production, Shrinking Workforce
Once the world economy showed signs of re-opening, the manufacturing industry shifted gears. The demand is at an all-time high - to compensate for the product shortage in the last few years.
There’s one thing common to all our clients that we have recently interacted with - all manufacturers have set amazing production goals for this financial year and they aspire to move in the direction of achieving them successfully.
Running parallel to increased demand & supply is the problem of a shrinking workforce. Automation, increased use of machinery, cost-cutting, skill gap, industry stereotypes, & other reasons are responsible for the same.
In 2020, Canada’s largest consortium in the manufacturing sector - the EMC (Excellence in Manufacturing Consortium) - surveyed 769 senior manufacturing executives. Skill shortage emerged to be the #1 concern that all of them agreed to be struggling with.
Since then, the skill gap has only widened, which in turn has reduced the number of suitable candidates.
What to do?
To stand firm in the competitive market, you cannot afford to cut down on your profitability and output goals.
The only solution is to have an in-house workforce that can help you achieve the same.
To get a deeper understanding of how to hire the best talent, feel free to refer to our guide on
How to Bring in the Best Talent to your Manufacturing Workforce in 2022.
2) Automation & Robotics
Innovations are happening at a rapid scale. With the increased use of complexities like AI, machine learning, and dynamic robotics, the future is going to make your processes much simpler, faster, and more cost-effective.
At the same time, you’d need to re-think & revamp your recruiting strategy. Manufacturing employers currently need to brainstorm on how to make the best use of their workforce.
Seeking the right skills in resumes is the #1 thing to do.
Any organization that houses a pool of employees efficient in cognitive thinking, digital fluency, IoT handling, and quick adaptability is well-prepared for the future.
Introducing efficient re-skilling & up-skilling training programs at your firm is another highly recommended step. This way, you can continue to work with the same people, while helping them in upgrading their capabilities
3) Becoming an Eco-Conscious Business
Companies all around the world are focusing on their social & environmental footprints. This not only helps in creating a better world for our future generations but also works as a great marketing tool.
Investors, consumers, employees, business groups, and government bodies: everyone appreciates an organization that focuses on things unrelated to its revenue numbers.
Climate change is the #1 problem for the manufacturing industry, as the sector alone contributes to 1/3 rd of the global greenhouse emissions.
Focusing only on production and profits while ignoring your carbon footprint can hurt your business’s brand image. Moreover, you can get in trouble with various government regulations.
If you haven’t already, we at M&M highly recommend that you begin to actively focus on becoming a sustainable business in the future.
Bringing in small but regular changes to your end-to-end operations is a sensible step towards serving the same purpose.
Various options can be explored, for example, the 4Rs (Reduce, Reuse, Recycle, Recover), frontline digitalization, replacing paper and in-person processes with digital ones, etc.
4) Diverse and Resilient Workforce
An organization is a family in an expanded form.
DE&I trends have been flourishing around the globe; more and more companies are taking vital decisions to ensure that their pool of employees is diversified enough.
The manufacturing industry has also undergone a commendable transformation. A major part of unfair physical labor has been automated, and DE&I policies have become a lot more common.
To sail on the same trend, you as an employer need to have a well-defined approach for the same.
- Do not hire for the sake of it. It’s unfair for a worthy candidate to miss out on an opportunity just because they do not fit in to fulfill your DE&I goals.
- At the same time, we encourage you to look for organizational-fit talent beyond the limitations of gender, color, ethnicity, age, etc. Your staff should replicate the universal human set as much as possible.
- Do not forget post-hiring inclusion checks. Your company culture should always provide respect, acceptance, and a sense of belonging to every employee.
There’s a lot more that you as an employer can take care of. This includes looking after your staff’s mental well-being, providing them with career advancement opportunities, and cultivating a determined work culture.
Essentially, your people make your organization.
Companies with a closely-knit team of high-performing individuals are guaranteed to progress towards a profitable future.
5) Solving Supply Chain Issues
Throughout recent years, we have seen global supply chains struggle many times.
Be it the global shortage of raw materials like semiconductors or high energy costs; any single crisis is capable of halting the best of supply chains.
At the same time, the patience span of consumers has been decreasing continuously. Any delay in the availability/ delivery of products can result in a loss of customer base, for both B2C and B2B market spaces.
If you haven’t faced such an issue in the past, kudos!
To ensure smooth functioning in the future, we recommend that you strengthen your supply chains and operations against any future emergency.