The industrial sector is booming in the post-pandemic times, with a surge in demand and free flow of products across international borders. American manufacturers are keen to make the most of the opportunity by scaling operations and reaching new markets. But expansion entails several challenges, specifically when it comes to industrial operations.
Despite these challenges, manufacturers have a valid reason to explore growth avenues. According to 2022 statistics, industrial production in the US increased by 5.3% compared to the previous year. As a manufacturer, you must make a move right now because there couldn’t be a better time to scale.
You will probably encounter operational challenges during the initiative, but awareness gives you an upper hand. Knowing the potential roadblocks can help you create a strategic plan to deal with them during the journey. Here are the ones business owners should be aware of.
Shortage of Skilled Workforce
A recent study shows that the US could see 2.1 million unfilled jobs in 2030 in the manufacturing sector due to skill gaps. With a skilled generation retiring, the problem is likely a dire challenge for the industry. The adoption of automation and machine sensors may seem like a viable approach. But not all manufacturing-related tasks can be mechanized.
The solution lies in rethinking the industry’s work structure. Hiring employees with cutting-edge technical skill sets is the best way to overcome the workforce gap. Likewise, you can invest in continuous training to make the workforce future-ready. Older workers can be moved to a guiding role, giving them the opportunity to stay in the workforce for a longer time.
Unplanned Downtime
Did you know that unplanned downtime costs manufacturers $50 billion every year? Besides wasting time and decreasing productivity, it can hit the bottom line and elevate safety risks in your plant. Undoubtedly, it is one of the worst operational challenges a manufacturer may deal with.
Factors such as human error, equipment breakdowns, and maintenance issues are the primary causes of unplanned downtime in industrial settings. Fortunately, all these factors are avoidable. Training minimizes human error, while preventive checks and maintenance can keep breakdowns at bay. Implement these measures as a part of the production process to address the challenge effectively.
Inefficiency in Manufacturing Plants
Although most manufacturers pursue efficiency as their primary goal, they often fall short on this front. Several things may affect manufacturing efficiency, from unproductive workers to outdated machinery, low-quality raw material, and supply chain disruptions. Keeping a close eye on your processes can help you pinpoint the culprits and address them with relevant measures.
For example, you can launch an AR-based training initiative to help employees master the workflow. Investing in reliable industrial scales keeps you ahead of the quality and precision goals. While measurement precision is often overlooked in industries, it can make all the difference to product quality.
According to Scales Galore, industrial weighing equipment is a savvy investment for all manufacturers, regardless of the domain. You need them at all stages, from production to storage and transport, so this is the last thing you should cut corners with.
Supply Chain Disruption
Another pain point you cannot overlook is supply chain disruption because it can hurt your business more than you imagine. Such disruptions can increase operational expenses by 3-5% and reduce sales by 7%. Both are critical concerns for industrial business owners, specifically after the pandemic, because they saw supply chain disruptions at their worst during the period.
While the problem will always be there, you can reduce the risk of disruptions by maintaining a healthy inventory of raw materials. Finding a reliable shipping partner can help you keep the sales going even when you experience bottlenecks. More warehouse space is another way to resolve this challenge.
Inventory Tracking
Besides supply chain disruptions, inventory planning is another problem area for manufacturers. Stocking up too much can block your funds in an unproductive activity, while not having enough can land you in trouble during a shortage. You need to find a perfect balance to eliminate the risks of shortages, excess, errors, and unreported losses.
Thankfully, automated solutions are now available to simplify and streamline inventory management. You can rely on software tools to issue real-time alerts and information about inventory levels. There is hardly a chance of error as the system constantly tracks and monitors your inventory.
Wrapping Up
Manufacturing is inherently challenging, but knowing the potential threats is the best way to stay a step ahead of them. A strategic approach can help you address them even before they affect operations. Additionally, the right measures can minimize the impact of these hindrances even if they disrupt processes.
