Six manufacturing challenges in 2022

The manufacturing industry is working hard to overcome the challenges brought on by Covid, Brexit, shortages of key commodities, as well as labour shortages. To conquer these challenges and drive growth, manufacturers need to be able to navigate these elevated risks while advancing sustainability priorities.

This article explores six key trends for the manufacturing sector for 2022 and beyond.

1) Supply chain instability

A recent report by Deloitte, ‘2022 Manufacturing Industry Outlook’ cites supply chain instability as a major challenge. Manufacturers face near-continuous disruptions globally that add costs and test abilities to adapt. There are still systemwide complications from high demand, rising costs of raw materials and freight, and slow deliveries across the globe. Digital supply networks and data analytics can be powerful enablers for more flexible, multitiered responses to disruptions.

2) Fulfilling ever-evolving customer demands

Delivering the right product at the right place at the right time is what all manufacturers seek to achieve. It helps them to acquire, retain and satisfy customers. Today, consumers are used to quick deliveries, and this includes constantly tracking their orders – right from the loading docks to their locations. Anything short of this damages your reputation and allows your competition to steal your business.

3) Managing complex supply chains

Many modern businesses are globalised and/or rely on supply chains crossing multiple territories leading to various intricacies. The more diverse your supplier network, the more difficult it is to ensure transparency across the supply chain. The integrity of logistics and fruitful customer relations may get compromised, ultimately impacting profitability.

4) Meeting compliance requirements

If your supply chain extends across multiple countries, you will likely face stringent regulations such as government tariffs, procurement rules and changing trade agreements. A comprehensive view of your supply chain can help you monitor and manage multiple variables including freight charges, exchange rates, changing regulations or delayed shipments.

5) Rising competition

Supply chain costs make up a considerable percentage of a company’s operating budget. Any inefficiencies in the supply chain directly affect bottom-line finances. Enhanced supply chain visibility ensures you can manage these issues and reduce costs.

6) Green agenda and sustainable manufacturing

There is a steady move toward sustainable manufacturing due to a growing urgency to address the profound environmental crisis; foremost climate change. Manufacturers are recycling more with less waste and implementing a traceable supply chain. Utilising an ERP system helps to boost production efficiency, better coordinate demand and supply, track waste, and strive for more sustainability and effectiveness.

The above challenges are just a few examples of the many obstacles the manufacturing industry needs to overcome to drive growth in manufacturing operations.

Download our guide: Reimagining Manufacturing to find out more useful information on how to drive growth in your manufacturing business and discover the building blocks needed to build a digital manufacturing operation.

2024-04-17T10:04:01+00:00August 5, 2022|Blog|
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