As we enter the second quarter of 2023, the manufacturing industry continues to experience significant changes and challenges. While the global pandemic has dramatically impacted the sector in the past two years, various factors, such as the geopolitical landscape, supply chain disruptions, and the adoption of advanced technologies, are shaping the outlook for the industry in the coming months. Here’s a closer look at the industry’s current state and explore the key trends and developments likely to impact its growth and performance in Q2 2023.
High Turnover
In 2023, one of the most significant predictions for the manufacturing industry is that there will be a considerable turnover, and Q2 is no exception. In an online survey conducted by Epicor, 56% of employees said they plan to leave their current jobs in 2023. This trend has developed over the last few years, but over half of the surveyed employees planning to go is exceptional. One of the top issues employees cited in their plan to leave was free time. Most said they would look for more PTO offered by their next employer.
Rising Manufacturing Costs
Another trend that will impact the manufacturing industry in Q2 2023 is the increase in the cost of raw materials and supply chain issues. The global pandemic and geopolitical issues have significantly disrupted supply chains, causing delays and shortages of raw materials and finished goods. Moreover, the rising cost of raw materials, such as steel, puts pressure on manufacturers to increase prices or find alternative sources. These challenges may persist or intensify in the coming months, forcing manufacturers to find creative solutions to manage their supply chains and minimize the impact of these disruptions on their operations and bottom line.
Technology
One of the biggest ways companies are looking to mitigate these high turnover rates is by investing in new technology to allow companies to rely less on a waning workforce. These technologies can also enhance operations, boost efficiency, and reduce costs. The widespread adoption of these technologies is expected to drive innovation and competitiveness in the manufacturing sector. We anticipate that developers and innovators will soon develop and implement even more advanced technologies. Particularly, companies are increasingly using artificial intelligence (AI), machine learning (ML), and robotic automation to streamline production processes, optimize supply chain management, and improve product quality.
Sustainability
Sustainability will also be a key consideration for the industry in Q2 2023. As consumers become more conscious of their environmental impact, manufacturers are pressured to adopt sustainable practices and reduce their carbon footprint. This includes using renewable energy sources, reducing waste and emissions, and implementing circular economy practices. The transition towards sustainability will benefit the environment, improve brand reputation, and provide a competitive advantage. In the coming months, we expect to see more manufacturers adopting sustainable practices and technologies and collaborating with their suppliers and partners to create a more sustainable supply chain.
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