Navigating the Current Manufacturing Industry

Happy 2022 everyone!

Navigating the current manufacturing industry

2021 was a year full of ups and downs, and we’re looking forward to it great things that 2022 in store! The year 2021 presented many challenges for various industries due to supply chain issues and morepandemic-related factors. Companies have had to adapt to these changes in order to remain successful, and one of those industries is manufacturing. The pandemic has had major effects on the manufacturing industry, and going into the new year, there are likely to be major changes being made to reshape the industry as a whole. We’ve compiled five ways the manufacturing industry is modifying processes in order to provide insight into navigating new changes and improvements that are made.

Greater focus on innovation

In last week’s blog, we discussed all the amazing technological innovations that are being made in this new year, and the manufacturing sector is no exception. progress. Manufacturing can benefit greatly from new technology to automate certain tasks and improve efficiency. However, automation will not replace human workers; It will improve productivity as a whole. However, despite the major benefits that automation brings to industry, only 14% of manufacturing Companies indicate that innovation and adoption of new technologies is not an essential part of their business strategy (1). Hopefully, in 2022, this percentage will increase with all the new developments produced Such as artificial intelligence, machine learning and intelligent machines (3).

Greater preparedness for supply chain disruptions

The global supply chain crisis has had adverse effects on the manufacturing industry, but many companies are implementing back-up systems to ensure they are not exposed to supply chain issues. Deloitte reports that supply chain strategies for 2022 will be multifaceted that includes digital supply chain networks and uses data analytics (2). This will allow for more flexible responses to supply chain issues due to greater clarity in the numbers and the current state of the supply chain.

Greater Sustainability Efforts

Widespread new work Essential is to become more sustainable regardless of the industry. Investors and clients They do more business with companies that promote sustainability and incorporate sustainable practices into their businesses. Manufacturers are no exception to this trend and it is expected that more and more companies in the industry will adopt more sustainable methods. performance of their business operations (3).

Focus on cyber security

as inIndustries are becoming more integrated between the physical workplace and information technology, and cybersecurity attacks are becoming more prevalent and occur more frequently. In the case of the manufacturing industry, cybersecurity attacks not only threaten their financial information, but can also be extremely harmful to production processes Resulting in the magnitude Produce Loss. By adopting and With strong cybersecurity and defense efforts, manufacturing companies can be well-equipped to handle attack efforts. (4).

change the way Talent visualizes the industry

The manufacturing industry has It was dealing with staff shortages and Vistage reports, “73% of manufacturing companies reported challenges in operating at full capacity due to staffing issues and 63% intend to increase the size of their workforce over the next 12 months” (1). The industry is adopting practices such as diversifying the talent pool and appealing to young people to try to fill these employee gaps. Making the training process quick and relatively cheap for talents to enter into a well-paid and rewarding career in manufacturing is one way this can be achieved. They hope to raise the morale of the unemployed to enter the industrial workforce. Also, 75% of manufacturing CEOs reported having raised wages and 59% of them having raised it by 4% or more. (1).

Overall, manufacturing is finding innovative ways to make up for the paltry year 2021 and operate efficiently and effectively in 2022. More efforts are expected to increase resilience with the unknowns around supply chain disruptions looming. Implementing an ERP system to help simplify and gain visibility is an ideal way to always be prepared for the unknown, and SAP Business One has the solution for manufacturing. With features to help with manufacturing efficiency, production planning, inventory management, and meeting regulatory requirements, SAP Business One is ready and well-equipped to scale your manufacturing operations with ease.

Read more about how SAP Business One works in the manufacturing industry here: https://softengine.com/industry/manufacturing/

  1. https://industrytoday.com/2022-a-crossroads-for-the-manufacturing-industry/
  2. https://www2.deloitte.com/us/en/pages/energy-and-resources/articles/manufacturing-industry-outlook.html
  3. https://www.wolterskluwer.com/en/expert-insights/7-manufacturing-trends-for-2022
  4. https://www.upkeep.com/blog/manufacturing-trends-2022

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