Despite the common conjecture that the manufacturing industry in the U.S. is taking a downturn, it still produces over 18 percent of the world’s total goods. This clearly goes out to prove that despite several hindrances, the manufacturing industry is on its way to resurgence. This can be attributed to the advent of new technology and lean manufacturing processes combined with a strengthening economy. However, there is no time for players in the U.S. manufacturing sector to unruffle, they must devise a new game plan to tackle challenges that come their way and continue their upward momentum.
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Challenges Facing the Manufacturing Industry
Shortage of Skilled Labor
The fact that the baby-boomer generation is entering into the retirement stage has taken a major hit on manufacturing companies. But the good news is that with the advent of technology, players in the manufacturing industry can gradually replace human labor with machines and employ candidates with a variety of other skill sets including proficiency in mathematics and analytics. The largely unskilled, trainable workforce that once made up a major portion of the employees in the manufacturing industry can now be replaced with automation and machine sensors. Moreover, AR and VR technologies are now making it easier for companies in this sector to train the workforce on the job while cutting costs.
Manufacturers in the U.S. face competition from all corners of the globe. In the recent year, China has proved to be one of the biggest competitors for the U.S. manufacturing industry as they are known to produce products for a fraction of the price that it would otherwise cost to make those same products stateside. Players in the manufacturing industry need to make their value known in order to combat global competition. Companies in this sector must constantly leverage the expertise of their people, improve their speed to market, undertake better innovation, and ensure supply chain efficiency, all this at the minimum possible cost.
To know more about Quantzig’s solutions that can help companies in the manufacturing industry revamp their game plan and better combat the challenges coming their way, request for more information.
Mitigating risks and avoiding uncertainty forms the primary objective of any business model. The ebbing and flowing of regulations affecting the manufacturing sector can result in costs to escalate or fall accordingly. Moreover, the changes in trade agreements and government regulations can wreak havoc on some business plans. Manufacturers need to stay informed and ensure compliance while focusing on their core competencies to gain a competitive advantage rather than rely on potential legislation to give them an edge.
Challenges relating to inventory is a frequent concern in the manufacturing industry. The big dilemma here is how to maintain the right inventory levels. Manufacturers can accomplish this by using real-time tracking throughout the whole production process. A serialized barcode facilitates in identifying the location and quantity of goods. The tracking software provides precise updates of raw materials, work-in-progress, and finished products making it possible to keep inventory accuracy at an all-time high level.