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manufacturing sector

Reviving the US Manufacturing Sector

MANUFACTURING

The erosion of the US manufacturing sector over the past couple of years have been a big blow on the growth of the US economy. Small and midsize manufacturing companies are the most affected, while large companies in the US manufacturing sector have managed to thrive despite the growing headwinds. Although it is widely believed that little can be done to put an end to the ongoing decline of US manufacturing sector, continued losses are not a foregone conclusion. On the brighter side, the rising demand, productivity gains through technology, and finding growth in new parts of the value chain will likely create an opportunity for the US manufacturing sector to turntables. Given how vital manufacturing is to the broader economy, capitalizing on these opportunities must be given national priority.

We examine some of the key factors that will fuel growth in the future of manufacturing in the United States and how manufacturers can leverage this opportunity to revitalize their business.

Attaining success in the manufacturing industry involves the use of market research, demand forecasting, product development, and distribution. Facing predicaments in handling it all by yourself? Request a free proposal from Infiniti’s industry experts to learn how we can help you.

manufacturing sectorGrowing demand

Although the US market is not the same familiar ground it was in the past, it remains one of the most developed and lucrative markets in the world. Furthermore, the US consumers are more diverse and expect higher quality and varieties at lower prices. Beyond the domestic market, the demand is also soaring in developed and emerging economies around the globe. However, for tapping into demand growth in emerging economies, it is vital to know exactly where and how to compete. Markets including Africa, Brazil, China, and India represent enormous opportunities, but they have dizzying regional, ethnic, linguistic, and income diversity. This translates to the fact that manufacturing sector companies must navigate greater complexity than ever before and identify the most feasible strategies to produce a wider range of product models with differing features, price points, and marketing approaches.

Industry 4.0

In order to enhance productivity, the US manufacturing sector must capture demand opportunities coming their way. Innovative technologies will play an integral role in determining how effectively they can achieve this and compete better in the market. The rise of industry 4.0 in the US manufacturing sector is largely driven by the increase in volume of data available, new forms of human–machine interactions such as the use of AR, and the ability to transmit digital instructions to the physical world. These advanced technologies are designed to run smart, cost-efficient, and automated plants that produce large volumes or plants that produce highly customized products.

Rethink and reinvent your business strategies with advanced market intelligence solutions. Get in touch with us to learn how our manufacturing sector experts can help your organization achieve this.

Rethinking business models, footprint, and sourcing

US manufacturing sector companies are seeking new ways to capture value beyond traditional production processes. Moreover, with changing input costs, the gap between labor cost in the US and abroad have also narrowed and the cost of industrial robots are rapidly falling. As a result, several US manufacturing sector companies are moving their manufacturing base to the home country. Advancements such as the internet of things and robotics can effectively handle dangerous tasks and eliminate safety risks. Beyond the factory floor, new applications for coordinating distributed supplier networks improve the flow and tracking of raw materials and manufactured parts.

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manufacturing industry

Curated Insights on the Manufacturing Industry from Infiniti’s Industry Experts

The past decade has been tumultuous for the global manufacturing sector. Large developing economies made their way into the first tier of manufacturing nations, a severe recession choked off demand, and there was a steep fall in the manufacturing employment in advanced economies. Despite this, manufacturing remains critically important to both the developing and the advanced world. The changing nature of the manufacturing sector means that old responses are no longer sufficient to sustain. While manufacturing remains crucial to support economic stability in both developing and advanced economies, business leaders and policy makers must keep track of the pulse of the sector to identify opportunities and challenges coming their way. We have curated some articles from Infiniti’s thought leaders about how the manufacturing environment is changing and what business leaders must do to adapt.

Key forces that will drive growth in the future of manufacturing in Europe

Europe’s manufacturing industry will play a significant role in building a sustained and competitive economy. The manufacturing sector currently accounts for nearly 15% of Europe’s GDP and will play a significant role in their long-term economic development. According to industry experts at Infiniti, factors including nearshoring in eastern Europe, carbon neutral manufacturing processes, and the rise of industry 4.0 will play a pivotal role in driving the future of manufacturing. Read the article for more insights.

A guide to effectively tackle your manufacturing overhead costs

The current scenario in the US manufacturing sector is much different from what it has been for over the past two decades. As output growth in the US manufacturing industry has been largely concentrated on a few industries such as electronics, pharmaceuticals, and aerospace, there has been a considerable fall in labor share of US GDP. The US manufacturing industry must now focus on positioning themselves to leverage existing opportunities and prepare to compete in the future rather than making attempts to recreate the past or maintain status quo. Gain expert opinion on how companies in the US manufacturing industry can tackle their excessive overhead costs on this blog.

Top manufacturing industry trends

Manufacturing companies around the globe are increasingly exploring radically new ways of creating and capturing value. Furthermore, with the changing demand of consumers, manufacturing will no longer be limited to producing physical products alone, it will largely revolve around personalization and customization. The new age industrial revolution also termed as industry 4.0 is powered by innovative technologies such as smart manufacturing, robotics, artificial intelligence and the Internet of Things (IoT). These technologies are expected to be major driving forces in the future of manufacturing. In this blog, industry experts at Infiniti provide comprehensive insights on the top manufacturing industry trends that you must watch out for.

FAQs on smart manufacturing

Smart manufacturing is one of the most trending topics among manufacturing experts right now. Smart manufacturing is a powerful force with the potential to restructure the existing competitive landscape and produce a new set of market leaders. In this blog, experts at Infiniti answer four key questions relating to smart manufacturing and how it is transforming the manufacturing landscape as we know it.

smart manufacturing

How to Successfully Navigate Through the Transition to Smart Manufacturing

Manufacturing as we know it is going through a phase of unprecedented transformations. Several initiatives and efforts are in full swing to fundamentally transform the manufacturing sector and associated processes. These initiatives, although known by different names such as industry 4.0 in the west to manufacturing innovation 3.0 in the east, they all stand to have a common pursuit – smart manufacturing. A fully-connected manufacturing business where machines, devices, and people work seamlessly, sharing and acting on information in real-time is vital for manufacturers to pull off a successful changeover to smart manufacturing.

The global push for smart manufacturing is underway, creating a pool of growth opportunities for manufacturers. Smart manufacturing techniques offer several opportunities for companies in the manufacturing industry to improve their operations by providing greater connectivity across the manufacturing facility and the ability to act on production intelligence. However, while some agile manufacturers have embraced smart manufacturing fully and are reaping the benefits already, most still have much work ahead of them. According to experts at Infiniti, less than 15% of manufacturing companies around the globe have successfully implemented a strategy to apply Internet of Things (IoT) technologies to their production processes. Experts at Infiniti explain how companies in the manufacturing sector can go about smartly implementing smart manufacturing in their organizations.

Learn more about how Infiniti’s solutions can help stay updated with the latest manufacturing industry trends and challenges.

Improve quality and productivity

Quality management and kaizen techniques can only provide limited outcomes when the information relied on are limited and not available in real-time. Manufacturers are leveraging embedded equipment intelligence to monitor most product specifications in real-time, either from a customer or regulatory perspective. Apart from this, they’re using this intelligence to address product defects and variations, verify whether quality goals are met, and improve customer satisfaction. Embedded intelligence, when used to improve control and transparency of manufacturing processes creates new opportunities to improve productivity. For instance, operators on the plant floor are analyzing real-time production data to uncover hidden inefficiencies and ensure faster implementation of changes. Managers and logistics professionals are leveraging smart manufacturing technologies to deliver critical data including forecasts and schedules to suppliers, while also monitoring delivery performances at the supply chain level.

Enhancing decision-making process

Manufacturers must consider upgrading their existing technologies in order to attain next-gen productivity. This involves reconciling dissimilar data sources with the current IT systems, extracting the data from smart manufacturing technologies, and then converting that data into actionable insights. Manufacturers that have adhered to these steps and armed themselves with better information are using it to optimize their assets, improve their responsiveness to changing customer demands, refine workflows, and reduce inventory holding.

There is an increasing need for for agile production, operational efficiency, and control in the manufacturing industry. Get in touch with our experts to learn how our solutions can help your organization keep up with the changing market dynamics.

Safeguard against threats

Availability of larger data sets and more connection points can introduce greater risk to manufacturing companies in the forms of internal and external threats. Cyber attackers are looking beyond corporate servers to target operations technologies, while decades-old devices and controls of companies in the manufacturing sector can be more susceptible to breaches through both malicious attacks and unintentional employee actions. No single security technology or methodology will suffice in this complex threat landscape. Instead, manufacturers must use a comprehensive, defense-in-depth approach that establishes security safeguards at different layers to stop threats on multiple fronts. Robust and secure network infrastructure should be built on standard and unmodified Ethernet, which has become the industry preference for security purposes.

Safe, compliant, and reliable operations

An ongoing concern for most manufacturers is to achieving safe, compliant, and reliable operations, and smart manufacturing technologies provide new opportunities for dealing with some of these age-old challenges. Common opportunities provided by smart manufacturing will include replacing obsolete and isolated automation systems that have exceeded their life spans, are difficult to connect and are no longer supported by their manufacturers. However, manufacturers also should define new requirements based on past performance in areas such as employee injuries, machinery downtime, and work stoppages.

Learn more about Infiniti’s solutions for companies in the manufacturing industry

Recent Posts

manufacturing overhead costs

Cost Reduction Strategies in Manufacturing: A Guide to Effectively Tackle Your Manufacturing Overhead costs

manufacturing overhead costs

If the production method is inefficient businesses are less likely to profit from it, irrespective of how impressive their products are. Rather than increasing the price of the product in such situations, it is advisable for manufacturing companies to lower the production costs and the manufacturing overhead costs.

What are manufacturing overhead costs?

Manufacturing overhead is concerned with a company’s manufacturing operations and includes the costs incurred in the manufacturing facilities other than the costs of direct materials and direct labor. Manufacturing overhead costs include all the indirect costs incurred during the production process. Our most successful clients focus on ways to improve costs, profits, and flexibility by reducing manufacturing costs. Manufacturing cost reduction efforts can result in significant product cost savings, manufacturing cost-saving, and life cycle cost saving especially when companies implement the right strategies for the reduction of manufacturing overhead costs.

It is vital for manufacturers to reduce their manufacturing overhead costs without having to compromise on the quality and quantity of the products. Not sure how to achieve this? Request a free proposal from our industry experts to find out.

Cost reduction strategies in manufacturing

Cut down material costs

One of the simplest ways to reduce manufacturing overhead costs in by cutting down the material costs. This can be achieved by tweaking product designs and effectively utilizing all the resources available at hand. It is always beneficial to opt for simpler designs and cost-saving raw materials. The leftover materials including cardboard, metal, and paper can be sent for recycling.

Optimize employee performance

Employees in manufacturing companies must be trained to keep pace with the changing consumer expectations. Training and development activities must be carried out to enhance the skills and productivity of employees in manufacturing facilities. Qualified and skilled employees can help businesses minimize their manufacturing overhead costs that occur due to production inefficiencies.

Get in touch with our experts to know how our advanced solutions for the manufacturing industry can help your business to trim down expenses while improving business efficiency.

Negotiate with suppliers

 Another way of significantly reducing the manufacturing overhead costs is to negotiate with the suppliers to reduce prices. To gain a reasonable price reduction from the suppliers, manufacturers can try offering larger deposits and ensuring that all the bills are settled on time.

Control inventory storage and purchases

The longer stocks are held, the more is the warehousing costs incurred by manufacturers. To avoid this and reduce the resulting manufacturing overhead costs, manufacturers must have a fair idea of when to resupply so that they do not get stuck with excess or obsolete inventory. Furthermore, adequate care must also be given to avoid inventory shortages. Inventory shortages lead to backorders which require manufacturers to add extra shipping costs and even worse, they can lead to unsatisfied consumers.

Learn more about Infiniti’s solutions for the manufacturing industry

manufacturing industry

US Manufacturing Industry: How to Improve Scalability and Compete in Future

The US manufacturing industry is quite different from what it was probably a decade or two ago. The erosion of American manufacturing companies has contributed to approximately two-thirds of the fall in labor share of US GDP. This is primarily due to the fact that the output growth in the US manufacturing industry has been largely concentrated on a few industries such as electronics, pharmaceuticals, and aerospace. Despite the headwinds in the sector, some of the largest US manufacturers have managed to thrive, but several small and mid-size manufacturing companies are facing the heat. The United States must now focus on positioning its manufacturing sector to leverage existing opportunities and prepare to compete in the future rather than making attempts to recreate the past or maintain status quo.

Small and midsize companies in the US manufacturing industry need more mentorship and strategic guidance to understand the market opportunities at stake. Request a free proposal for more insights from our experts.

US manufacturing industryStrengthen supplier base

Keeping suppliers at arms-length often has an impact on the bottom-line of large manufacturers. For instance, take the case of automobile manufacturing. The inefficiencies in interactions between OEM and suppliers can add up to development, tooling, and product costs. These costs are generally seen to be higher for US manufacturing companies when compared to their Asian counterparts. Similar inefficiencies can also impact other industries and are more likely to increase as the need to expand product portfolios and reduce turnaround times increases. Seeking lower bids from suppliers can result in diminishing returns over time. Procurement should be viewed as a source of value rather than simply a means to cut costs. Companies in the manufacturing industry can also benefit from identifying the suppliers that provide critical, high-value components and these may not be the largest suppliers. Rather than restricting themselves to only monitoring suppliers, US manufacturing industry companies must make efforts to solicit their ideas, invest in their capabilities, and build trust to enhance supplier relationships.

Many manufacturers, particularly in advanced industries, often report difficulties in identifying and capitalizing on opportunities before their counterparts in the market. Get in touch with our experts to know how our solutions can help companies grab opportunities and gain a better foothold.

Deeper global engagement

Emerging markets open up new opportunities for companies in the US manufacturing industry to win customer loyalty and build their customer base. However, the number of US companies that sell abroad are much lesser when compared to other developed economies. Small and mid-size companies in the US manufacturing industry must gain a deeper and strategic understanding of the opportunities that their counterparts enjoy in advanced economies and turn it to their advantage.

Improve adoption of digital technology

The US manufacturing industry has been relatively slow in the adoption of digital technologies. This has caused a significant impact on the industry’s productivity performance. When compared to nations such as Germany, Japan, and South Korea the adoption of advanced technologies and robotics in the manufacturing industry has been comparatively lower in the United States. In order to capitalize on modern technology, manufacturers have to capture, analyze, and integrate data flows across operations. Also, consider upgrading and replacing some outdated machinery with the latest ones.

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manufacturing industry in Latin America

Why Top US Brands are Turning to the Manufacturing Industry in Latin America

Earlier, many top manufacturing companies in the US heavily relied on Chinese manufacturers due to the availability of low-cost labor. However, with the rapid economic growth in China and a larger section of the Chinese population moving to middle-class and demanding higher wages, several global brands are turning away from China in search of lower-cost alternatives from emerging markets. The manufacturing industry in Latin America is one such market that has become highly lucrative for companies in the US. Everything from medical supplies, to pharmaceuticals, to apparel, aircraft and computer machinery is now manufactured in Latin America, and the political and economic policy adjustments have significantly contributed to the manufacturing industry growth in Latin America.

A lot goes into finding the right balance in terms of economy and quality while manufacturing a product. Request a free proposal to know how our solutions can help you achieve this!

Benefits of manufacturing in Latin America

manufacturing industry in Latin AmericaProximity

One of the key benefits of manufacturing industry in Latin America is its proximity to the US. When American brands do business with suppliers in overseas regions like Asia, it requires officials from the company to travel to the foreign nation. This is primarily because they may want to gain a firsthand view of where and how their products are manufactured.  One of the key benefits of manufacturing in Latin America for companies in the US is their proximity to Central America. Another challenge that proximity helps solve is the disconnect from the manufacturing process.

Lower turnaround time

By relying on the manufacturing industry in Latin America, companies in the US can ensure faster shipping of the final products than that from overseas. Often, businesses that have their manufacturing units in Asian countries like China re-stock only once a quarter it takes at least a month for an order to ship overseas. This lack of flexibility in ordering can lead to over- or under-stocking of products. Shipping from the manufacturing industry in Latin America gives a lot more flexibility to companies in the US when it comes to placing orders.

Get in touch with our experts to stay updated on the latest manufacturing industry trends, challenges, and opportunities and learn how our solutions can help your business stay ahead of the game.

Vast labor pool

One of the biggest advantages of turning to the manufacturing industry in Latin America is the high labor pool available. With China’s economy on the upswing, the labor costs of manufacturing industry in Latin America would prove to be much cheaper for brands in the United States. Moreover, in changing economies, Like China, where a greater number of people are rapidly entering the middle class, the manufacturing industry is booming due to the rise in demand by the local population. This means that manufacturers are utilizing their own resources to meet local demands. In some places, it is required for them to do so. This could lead to longer turnaround times and higher cost of labor overseas, making the manufacturing industry in Latin America highly attractive for American companies.

Learn more about Infiniti’s solutions for business.

smart manufacturing

Answering 4 Key Questions About Smart Manufacturing

Over the past couple of years, smart manufacturing has been the trending topic of discussion amongst manufacturing experts, strategists, and industry thought leaders. Despite smart manufacturing garnering increasing popularity, many in the manufacturing industry aren’t quite sure of what it entails, its benefits, and how it is relevant in their organization. Smart manufacturing is a powerful force with the potential to restructure the existing competitive landscape and produce a new set of market leaders. Companies that are slow to adopt such advanced technologies and processes could be left behind.  In this blog, experts at Infiniti answer four key questions relating to smart manufacturing and how it is transforming the manufacturing landscape as we know it.

smart manufacturing

What is smart manufacturing?

Smart manufacturing involves the use of fully-integrated and collaborative manufacturing systems that respond in real-time for catering to the rapidly changing demands and conditions in the factory, the supply network, and customer needs. It is a broad concept that cannot be implemented directly in the production concept. It employs computer controls, modeling, big data, and other automation to enhance manufacturing efficiencies.

RFP to know how our market intelligence solutions can help manufacturers overcome key challenges and strategize to stay prepared for future hurdles.

What are the benefits of smart manufacturing?

Smart manufacturing opens up new avenues of innovation that will optimize the creation of higher quality products, improve productivity, sustain safer plant floors, and improve energy efficiency. Furthermore, it will give manufacturers the opportunity to boost employment rates over the current national manufacturing workforce. With the adoption of smart manufacturing techniques, more technology based manufacturing job positions will be available, creating direct manufacturing as well as non-manufacturing positions.

What does smart manufacturing mean for manufacturers?

For small manufacturing companies leveraging any type of business intelligence solution from legacy systems has been extremely limited.  Generally, these systems are not interoperable. As business models are increasingly becoming non-scalable, non-replicable, overly complex, and costly, it is increasing the difficulties for small manufacturing firms. Using smart manufacturing technology, small and medium companies in the manufacturing industry will gain access to new and growing forms of business intelligence. It can also be used to analyze data and test simulations that play a significant role in improving products, design, and performance.

Need more information on the key opportunities and challenges facing the manufacturing industry right now and the strategies to overcome them? Get in touch with our experts.

How does data drive smart manufacturing?

Smart manufacturing primarily revolves around harnessing data. Since smart factories are built on the foundation of data, cybersecurity will play a key role in the entire manufacturing ecosystem. While enabling advanced techniques such as smart manufacturing, data security is imperative. Machines, smart sensors and robotic platforms on the shop floor generate data that is necessary for monitoring, maintenance, and the basic management of the production line. However, much of this data remains in information silos within the factory. Greater integration of context data coming from several different data sources can enhance efficiency and increase the speed of production processes.

Learn more about Infiniti’s solutions for the manufacturing industry.

Competitive Landscape Analysis

Critical Challenges facing small manufacturing companies in the U.S.

The U.S. manufacturing industry is facing unprecedented challenges. The sector stands at a critical point in its long history wherein the future of the big and small manufacturing companies will largely depend on how industry leaders view and react to the changing landscape. That being said, small manufacturers in particular face a fair number of challenges, including competition from large domestic businesses in the U.S. as well as from other global players. As the technological, demographic, and economic climate shifts, small manufacturing companies must innovate themselves in order to stay competitive. Let’s take a look at some of the issues facing small manufacturing companies through the lens of industry experts at Infiniti Research.

Challenges faced by small manufacturing companies

small manufacturing companiesCompetition from foreign companies

Small manufacturing companies in the U.S. are currently facing steady competition from several players around the globe. The competitive pressure is particularly high from Asian countries such as China where similar products can be produced for a fraction of the price it would cost to produce similar products in America. The low labor costs in countries like China enables manufacturers to produce and sell at extremely low prices, posing severe challenges for small manufacturing companies in the U.S.

Despite recurring challenges, small manufacturing companies can leverage advanced business intelligence solutions to face these challenges head-on and continue their upward momentum without any disruption. Request a free proposal to know more.

Regulations and compliance issues

One of the major roadblocks for U.S. based small manufacturing companies to compete with their offshore counterparts in terms of price is the labor costs and stringent government regulations. The U.S. is also constantly changing their regulatory and compliance policies that can force small manufacturing companies to make adjustments, causing them to spend even more on monitoring compliance.

Increasing quality of offshore manufacturing

A decade or two ago, the foreign quality of production was poor when compared to the U.S. However, now not only are the products manufactured outside the U.S. cheaper but over the years the quality of these products has also risen drastically. This has resulted in intense competition for small manufacturing companies. In order to survive such growing manufacturing industry challenges, companies in the manufacturing industry, especially small manufacturers must focus on improving their quality of production while maintaining their costs.

Get in touch with our industry experts to know how small manufacturing companies can tackle critical manufacturing challenges, turn them into opportunities, and eventually grow the business.

Shortage of skilled labor

Skilled workforce is highly essential in the manufacturing industry to complete various specialized tasks ranging from welding to programming automation systems. There has been a decline in the number of people enrolling for such skilled courses in universities over the past couple of years. To add on to this dilemma, a major portion of the existing workforce in the U.S. manufacturing industry are almost on the verge of retirement.  Consequently, there is a shortage of skilled workforce across large and small manufacturing companies. Manufacturers now need to identify new ways to incentivize and attract talent into the industry.

Competition from on-shoring

Apart from competing with offshore firms, small manufacturing companies are now also facing increased competition due to the growing trend of on-shoring. Foreign companies that primarily cater to U.S. customers are finding it more cost effective to manufacture in the states because of the cost of storage, transportation, and tariffs. Such companies act as an extra competition in the already difficult market, especially for small manufacturing companies.

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manufacturing sector

How the US Manufacturing sector Compares to Other Nations

After several years of falling output and diminishing labor force, the industrial manufacturing sector in the United States has been enjoying resurgence over the past couple of years. According to manufacturing industry experts at Infiniti Research, factors including the strengthening economy, better workforce quality, favorable tax policies and regulatory environment, and reduced transportation and energy costs are catalysts for this revival. In order to move forward, it is essential to understand how the manufacturing industries across the world are performing in comparison to that of the U.S. manufacturing industry. In this blog, experts at Infiniti Research provide insights on the manufacturing trends and some of the manufacturing challenges faced by different nations. They also highlight how the US manufacturing sector compares to these nations.

China has one of the strongest manufacturing industries in the world in terms of manufacturing output and the percentage of its national output that is generated. Meanwhile, Poland has the highest percentage of its workforce employed in manufacturing.

United Kingdom

The drop in the value of the British pound against the U.S. dollar and the euro has strengthened the U.K.’s manufacturing sector, thereby facilitating an increased demand overseas for goods from the country. Furthermore, the manufacturing sector holds a strong presence in the country due to its significant role in the export economy. In fact, the manufacturing sector contributes to a good majority of the U.K.’s overall exports. One of the key manufacturing trends in the U.K. is the rising efforts made to capture a significant share of the overseas market. However, the weak pound can impose manufacturing challenges as it may increase the import cost of certain supplies. Furthermore, as Brexit negotiations unfold, the future of manufacturing in the U.K. will experience significant turbulence.

Most companies in the manufacturing industry often cite congestion, logistical issues, or connectivity problems as major barriers to overcome. Are you facing similar issues in your business operations? RFP to learn how our solutions can help you overcome to these predicaments.

Switzerland

The effective governance policy in Switzerland has played a favorable role in shaping its strong manufacturing g sector. As a result of their long-held international neutrality, the country has transparent and fair processes, strong judicial effectiveness, and good economic and political stability. Moreover, Switzerland prioritizes being a strong trading country. The country has also got a top-notch manufacturing talent pool with a large number of highly-skilled workers. The key manufacturing challenges faced by companies in Switzerland include the cost of production and the strong franc value that could hamper exports.

Brazil

The rising corruption in Brazil is one of the primary factors that has plagued the country, resulting in a flailing manufacturing sector. Corruption makes investors reluctant to pour money into business operations due to chances of long-term uncertainty. Consequently, this dampens the chances of long-term investment and business growth. This can have adverse effects on the country’s manufacturing sector. A healthy manufacturing sector is contingent upon transparency in financial transactions, relative certainty in a country’s political environment, and individuals being held accountable for illegal action.

Indonesia

Although a decade ago Indonesia’s manufacturing sector contributed a significant amount of their GDP, Over the years the industry’s contribution has considerably dipped. Indonesia is largely hampered by anemic labor productivity. The sizeable proportion of small and unproductive firms in Indonesia are dragging down the entire sector. To improve their global competitiveness, Indonesia needs to develop its workforce and advance its manufacturing sector. They must focus on incentivizing manufacturing companies with low productivity to either exit the industry or improve their productivity through technology and skilled labor.

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Manufacturing sector in the US

Skilled workforce, advanced technology, and pro-business policies have propelled the growth of the manufacturing sector in the U.S. Manufacturing contributes to over $2 trillion to the United States economy. The labor costs in the United States are significantly higher than in other countries. However, the levels of productivity found in the United States make up for this difference, making the country an attractive location for manufacturing investment. Furthermore, disruptive technologies including additive manufacturing, 3D-printing, robotics, and the utilization of the IoT and Big Data are revolutionizing the U.S. manufacturing sector. This has not only increased levels of productivity but has also made the United States one of the most attractive locations for high-technology manufacturing firms. The United States has, benefited from open trade policies, and in order to attain continued manufacturing growth, the country should avoid tariff wars or overly restricted trade policies.

The gap in labor costs in the United States in comparison to other countries has started to drop and is expected to continue as the cost of industrial robots falls.

Learn more about how manufacturing sector challenges vary from region to region and how our market intelligence solutions can help overcome them.

workforce management

Drilling Down the Workforce Management Challenges of the Manufacturing Sector

The manufacturing industry in the U.S. has made impressive strides in the past couple of years. The country has witnessed a rise in public awareness about the modern manufacturing industry, increase in jobs returning to the country, and also the advent of new technologies that are driving the industry forward. However, the ongoing struggle to find skilled labor due to the rapid retirement of baby boomers from the sector is proving to be a major workforce management challenge for companies in the manufacturing sector. Apart from this, there are several other challenges that manufacturing companies must tackle in order to sustain the future scalability of the sector.

Stay updated on our latest market intelligence solutions for the manufacturing industry. Request a free brochure to learn more.

Top workforce management challenges

 Hiring the right workforce

Manufacturing operations today are largely different from what it was a decade ago. The advent of digital technologies including robotics and advanced enterprise software are paving way for a new manufacturing environment. The modern workforce must have the skills and expertise to handle the digital systems which have become a part and parcel of the manufacturing sector.  Fewer schools offer shop classes and more students shy away from manufacturing, posing as a workforce management challenge for manufacturers to find the right talent.

Are you a manufacturer facing similar challenges? Request a free proposal to know how we can help you overcome them.

Consistent training and education

With rapid changes taking place in the manufacturing industry, even well-trained employees may face difficulties in keeping pace with these disruptions. Another key workforce management challenges for companies in the manufacturing sector is to ensure consistent training and education that would ensure that employees are up-to-date with the new tech trends and other market changes.

Overcoming stigmas related to manufacturing jobs

Throughout the United States, manufacturing has fallen out of style. High Schools, teachers and parents alike are steering children away from a career in the industry. This sector is currently bogged down by outdated stigmas such as being a dark, dangerous, and an ominous industry creating serious workforce management challenges for this sector. 

Cybersecurity threats

Technology continues to change how manufacturers develop products and interact with customers. As a result, information technology security risks have increased. Despite this, several manufacturers fail to take the necessary steps to protect their data. The number of connected products in manufacturing operations is on the rise, consequently, external and internal vulnerabilities are also increasing in the industry.

How can Industry 4.0 help manufacturers overcome workforce management challenges? Download this free resource to find out:

workforce management

 

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