From pandemics to trade wars to actual wars, manufacturing has seen its share of problems over the past few years! The reality is every manufacturer is struggling with many of the same problems.

Naming every problem would be impossible in one article. However, based on the current manufacturing trends, we'll go over four major challenges every manufacturer faces today.

Keep reading to see the manufacturing challenges and how some companies are finding solutions. 

1) Supply Chain Management 

Supply chain issues have gotten a lot of press over the past couple of years for good reason. Inventories are at critically low or high levels after the pandemic and unrest in the world is causing new problems.

Many manufacturers are moving from a "just in time" concept to a more balanced approach for supplies. They are looking at ways of having inventory in place strategically for a quicker response without large pockets of inventory.

Both can create a need for more storage and warehouse space. This could be a place where companies share space and costs. By working together, they can have less costly storage to help hold expenses down.

Developing a partnership with your supply base is just as important as one with your customers.  Creating and maintaining open and transparent communication is key to understanding the key issues facing each side.  By working together you can determine the best approaches for your specific issues.

2) Labor Challenges

There is an increased demand for skilled labor and a shortage of skilled workers. Automation has helped solve some of the labor issues, but the reality of finding skilled workers is a problem for manufacturers. Many factors are contributing to the shortage like the retirement of skilled workers and the lack of qualified candidates.  In addition, today’s younger employees are content to learn what they can in 1-4 years and then move on to a new adventure. 

Because of these challenges, retaining employees is a priority. Companies are offering more benefits and pay along with upgrading facilities to keep current workers happy.  These benefits can range from flexible schedules, free food/drink, child/pet care facilities and remote work opportunities. Look for ways to keep your employees engaged and make sure they have clarity around their objectives.  Maintaining alignment with the company’s vision can help provide employees with a sense of purpose or increased satisfaction.  Your chance of retention greatly increases when your employees feel involved and they are contributing to the success of the company.

Along with this, many companies are trying to focus on upgrading the skills of current employees. Paying for new certifications and offering to help pay for school has helped some companies build a stronger workforce.

Many tool manufacturers are also looking at bringing production back domestically. There are several approaches to make this happen:

Partnering with local schools to develop local talent is one path to take. Some companies are partnering with community colleges to sponsor training for candidates. For many years, Bead Electronics has been supporting scholarships and programs for local community colleges and their advanced manufacturing technology centers.  Leveraging internships or apprenticeships is a great way to strengthen the community while supporting a short-term need.  You should also consider how you support part-time employees. 

Another way to address the labor shortage is using online recruiting. Companies are also investing more in their brand and image to help them appeal to younger workers. Videos and testimonials on your website could be a big part of why someone seeks employment at your site. 

Your online presence should also convey that your company is inclusive and welcoming to female candidates. Many companies have a hard time getting female candidates to apply because of the old perception that manufacturing jobs are for men.  Companies are attacking this perception head-on by promoting female candidates into important roles. They are also using the media to show how women are an important player in manufacturing today.

This is something that must be done deliberately to help overcome the negative stigma. Qualified female candidates need to understand and see how manufacturing jobs benefit from their skill set.

3) Technological Gap

The quantum leaps of technology have caught many small to mid-level manufacturers unprepared. They are often using older legacy systems and don't want to upgrade to new technology.

When a manufacturer is reliant on outdated technology, it will be harder for them to appeal to a younger worker. Modern manufacturing workers are much more tech-savvy and the lack of technology often causes them to look elsewhere for work.

At the same time, your company's technology can be a big part of how you reach out to new workers. 

The new Bead Electronics milling center expands capabilities in fine-pitch hard milling, enabling custom production-tooled parts to be delivered in half the time.  This is just one of our company’s recent investments.  Employees across the organization enjoy engaging in these new technology projects and their energy helps to propel us forward.

Be aware of how technology is evolving.  You don’t always need to buy the latest and greatest, sometimes last year’s technology can still be an upgrade to what you are doing and come at a fraction of the price.  You can also reach out to your local government or manufacturing organizations to find out how to sign up for grants or partner with other local companies to leverage public money available to small manufacturers. 

4) Public Perception 

One of the biggest issues facing manufacturers is the public perception that so many people have of sweatshops from the movies when they think of manufacturing companies.

This perception has to be dispelled and each company must do it through better education. People need to see how today's modern manufacturers function.

Climate-controlled plants with cutting-edge automated solutions are more common than people think. Companies should highlight this aspect of their process. This will help change their image and appeal to new prospects.

The manufacturing industry has many well-paid positions that the public often doesn't realize exist. Companies can help change people's perceptions by being open about the pay and benefits they offer, as well as sharing the new and exciting developments that are happening throughout the manufacturing world.

Take Advantage of Manufacturing Trends

Manufacturing challenges exist but even in the midst of them, manufacturing is growing. The push for more domestic manufacturers could be a big boom for many companies in the U.S.

Bead Electronics manufactures custom wire,  hollow contact pins, electronic header assemblies and other mechanical interfaces. Our passion for manufacturing has been part of our DNA since we were founded in 1914.

Contact us about your manufacturing needs and see how we can help. We also excel at partnering with other manufacturers to see how our industry can improve and grow.