6 challenges in front of manufacturing sector in 2017

We are aware that the sector is growing but the news which gets overlooked is there are also many factories that are closing down or are on the verge to go down. The reason is the lack of skilled labour. There is plenty of labour force available from India and China but the question is are they skilled enough to perform the given task and if not then is the training available for that? Here is where the industry finds itself in a dilemma. The lack of training to the staff members and labour force which are the driving components of any company is sometimes the main reason for shutting down the business.

It is not the only sector facing such problems. How annoying and restrictive this burden can be would be only known to the one who deals with it periodically. The regulations are necessary to some extent but the others that come along with it is the reason which keeps the industry tight. This moreover discourages the trade globally and may also show effects on the supply.

As said innovations form a big part of the manufacturing industry and leaving it out in the strategy meetings can lead to big problems. A company cannot manufacture or sell the same product for decades! They need to bring constant changes to the newness of their product and also to make it better and cheaper. Constantly bringing out new products and method of production keeps the industry alive.

This may not seem to be a big obstacle but as the graphic shows, the costs for it are rising. The health care benefits that are being provided directly put a load on the structural cost and profits of the manufacturer. Manufacturers are needed to be aware of this cost to evaluate planning and strategy. This puts a lot of strain on the manufacturers especially in the US as their competitors are free from this type of cost and can set aggressive prices for their product in the market.

This factor generally isn’t a matter of concern, as since the industrial revolution the demand has always been increasing. The catch here is when some economic crisis or unstable financial environments surfaces this graph of demand gains exceeding gravity. This can also be the reason for the crisis and also vice versa. Decreased demand can be understood as the most dangerous aspect as it can result in oversupply and disrupt the logistics and inventory. The manufacturing industries always need to have a backup plan for such circumstances.

Companies are now adopting the concept of Corporate Social Responsibility (CSR).  While making any decisions they also have to keep in mind the effects of it on the society and environment which restricts them in certain ways of manufacturing because of the emissions and waste generation. Manufacturers now need to use sustainable engineering strategies to step further ahead to compete with other competitors or it may lead to a decline in their brand reputation more than the harm it may cause to the environment. Enabling this does ensure brand evolvement but nurturing it can be an expensive affair.

Preventive measures are always better rather than having an immediate plan of action. The manufacturing industry is and will keep expanding but the obstacles with them on their way will also be needed to deal with.