Changes on the horizon are creating an interesting conundrum for the industry. Increased demand for products means your company will be busy. But, on the other hand, higher costs from tax increases, system upgrades, and decreased productivity caused by labor shortages and supply chain delays will challenge your bottom line. So how can you align your business with coming trends and emerge strong and poised for success?
There are multiple theories regarding the current labor shortage. The pandemic, of course, has affected worker numbers through quarantines and the need to stay home to care for family. Many workers opted for early retirement to avoid returning to COVID-unfriendly positions. The pandemic catalyzed a shift toward flexible and remote work. Many workers are taking this opportunity as a “wake-up call” and are exploring a career change, delaying their return to the workforce as they receive needed training or leaving it altogether to start new businesses.
It’s essential to think about how you will attract and keep employees. You might explore ways to change public perception of industrial work. It’s time to emphasize upward mobility, purpose, and recognition to enlist quality talent. As part of your goal-setting for 2022, consider how your team can build a culture that increases job satisfaction, motivation, and community spirit. According to Deloitte Research Center for Energy & Industrials, “As flexible work is taking root in offices, manufacturers should explore ways to add flexibility across their organization to attract and retain workers.” Artificial intelligence is another way many industries are coping with the labor shortage. More on that later.
Disrupted Supply Chain
You’ll need a strategy to cope with continued supply chain challenges in 2022. Currently, the industry faces trucker shortages and backlogs in ports, resulting in depleted inventory. However, according to George J. Newton, many companies are bringing manufacturing back to the United States. He points out in Business View Magazine, “The rising fuel costs, global trade shutdowns, and new tax incentives were enough to lure a lot of the industry back onshore.”
Some companies are moving away from just-in-time inventory methods and opting instead for stockpiling key components and raw materials. As a result, a leaner, more efficient digital process will also be vital going forward.
The Build Back Better Act is expected to increase taxes for manufacturers starting in 2022. So, it’s more critical than ever to invest in efficiency strategies and build better employee retention methods. Likewise, keeping your workforce healthy and motivated and eliminating downtime and product waste is critical.
With all these challenges facing the industry in 2022, it’s essential to stay current with the technology and tactics that will give you the edge to survive and thrive in today’s market.
Advances in digital technology and artificial intelligence allow companies to manage their supply chain better, compensate for a smaller workforce through robotics, avoid downtime through predictive maintenance, and use virtual reality and augmented reality to assist with remote repairs. The latter reduces travel costs and time and ensures service technician safety.
AI, 3D printing, IIOT, data mining, and big data are technologies that can save time and money in the long run and set you ahead of your competition. Now is the time to build a team that can implement these technologies and position your company for a successful future.
Find the Right Employees Today
Finding the right employees is key to building a stable, savvy, efficient workforce. At Career Concepts, we’ve been matching the best people with employers for over 50 years. Streamline your search for the right people. Contact us today!