The Covid-19 pandemic has led to serious supply chain shocks following impacts on manufacturing lines. Evidence shows that demand for consumer products stalled, cutting spending on discretionary consumer goods like clothing, fashion, household, and lifestyle products. In addition, markets experienced a massive shortage of electronic components due to the reduced production of processors and semiconductors.
So, what challenges do today's manufacturing lines face and what solutions are required for growth. In this post, we discuss the top challenges facing manufacturing lines in 2021 and the underlying solutions to these problems.
1. Covid-19 pandemic
According to a March 2020 survey by the National Association of Manufacturers, 78% of the manufacturers expect that the Covid-19 pandemic will have a financial impact on their day-to-day operations. 54% of manufacturers anticipate a change in their manufacturing and production lines, and an additional 35% are already facing a supply chain crisis.
To deal with this problem, manufacturers have to consistently investigate smart solutions that will give them better visibility into their operations. For instance, partners like CSIFLEX are offering real-time system information that offers insight and predictability. This implies that with smart automated information systems, manufacturers can predict crucial patterns, and know how best to respond and adjust post-Covid.
2. Increased reshoring
Reshoring is the practice of relocating an overseas business operation back to the country in which it originated. More and more throughout 2021, businesses and firms are rethinking reshoring. The Reshoring Institute indicates that more and more businesses will increasingly be inspired to consider reshoring in the coming years due to increasing foreign wages and rising tariffs on aluminum, steel, and electronic components.
But how strong are reshoring efforts in the current post-covid era?
Well, as early as 2019, 96% of executives said they would reconsider a domestic source for critical resource components if the quantity and price were competitive to foreign suppliers. Now more than ever, automation is making manufacturers competitive enough to bring manufacturing back and to scale crucial operations. For more about automation, you can contact CSIFLEX and accelerate your success in reshoring efforts.
3. Finding and keeping labor
Unemployment among skilled workers was low even before the Covid-19 struck. Today, given the current situation, manufacturers still need to find knowledgeable and motivated employees for the job. If you're looking forward to hiring new employees, determine the minimum job requirements, broaden your search strategy, and develop a strategy. It's advisable to finalize by focusing on retention because while hiring may be necessary, it's even more important to hold onto the employees you already have. Retaining employees in an environment where workers make lateral movements to improve their salaries can be challenging. That means that you have to make your manufacturing line the best place to work to encourage skilled employees to stay. Granted, creating a culture where employees feel respected and valued encourages employees to stay.
4. Maneuvering changing laws
Every year, you must ensure you're at the top of changing laws because laws change at every turn. To maintain your balance in a sector rife with changing regulations, it's crucial to focus on seven areas for manufacturing in 2020:
- Right to know
- ISO procedures
- State and local laws
- CARES Act
With automation software that keeps your systems updated and notifies you when it’s needed, you can rest assured that all deadlines will automatically be displayed to you. In addition, the automation solution provides updates on crucial legislations that your manufacturing line must follow and adhere to.
5. Increasing demand
Even with the pandemic, some businesses are facing two-demand related problems:
- So much demand that you need to increase your capacity
- Demand-driven manufacturing is compromising your most important goals
Having too much demand that requires you to increase capacity can force choices, whether moving to a new production facility or expanding your current facility. Under demand-driven manufacturing, most firms are keeping up with orders from existing clients, leaving little time and money to invest in mission-critical initiatives.The main challenges that stand in the way of growth for these demand-driven manufacturers include:
- Cost of acquiring new customers
- Equipment costs
- Facility costs
- Complications of adding a second facility
CSIFLEX – Your Smart Manufacturing Partner
Advanced systems provide visibility and insight into your manufacturing processes, enabling you to make data-driven decisions in real-time. With CSIFLEX, your manufacturing line gets to enjoy top-of-the-line smart solutions including automation of manufacturing processes, cloud storage of crucial manufacturing information, and better security to data and processes. By automating your manufacturing line using smart solutions, you enjoy many benefits: increased workplace safety, reduced labour costs, increased productivity, and reduced manual tasks. In addition, smart production lines achieve reduced manufacturing lead times and avoid the higher cost of not automating.
Contact CSIFLEX for time-to-value smart manufacturing solutions.