CHALLENGES FACING

MODERN MANUFACTURIN

G COMPANIESBY: AKSHANSH MISHRA

akshanshmishra11@gmail.com

Manufacturing is an ever-changing industry, where manufacturers face new issues and concerns every year. Since this year is no exception, here are a few of the top concerns that manufacturers are grappling with.

FINDING GOOD PEOPLE No doubt about it, the top problem facing manufacturing,

especially traditional manufacturing, is finding good people for your shop. In fact, I’d go so far as to say that this has been the top challenge in manufacturing for more than the last 10 years. The sad part is that it is not necessarily a lack of educated or skilled workers (although that is an issue, too), but it’s mostly a matter of finding people who have a good work ethic. Manufacturing companies today have a hard time finding employees who will show up and be on time for work, stay at their work stations, and, bottom line, stick with their jobs. When it’s hard to find reliable personnel, employers have to spend excess time hiring and training new employees, then rehiring and training new employees.

RISING EMPLOYER COSTS Another big challenge in manufacturing, is the extremely high

cost of workers compensation insurance and local property taxes. An employer could make all the right internal cost decisions, only to have them neutralized or cancelled out due to workers compensation and taxes. Essentially, these rising costs mean manufacturers are constantly taking two steps forward only to be hit with four steps back. What’s especially sad is that those four steps back are often things that we employers have little or no control over.

LACK OF INVESTMENT IN RESEARCH AND DEVELOPMENT SECTION It is not need to say we have very big firm in manufacturing but

when it comes to investment for research for new product or technology, investors interest always seems low. While going training in one of the reputed Public Sector Company , I came to know about they have closed the research and development section due to lack of investment in it.

MANUFACTURING SKILLS GAP The manufacturing sector is doing all it can inspire a new

generation of manufacturing employees and experts, however the truth of the matter remains that there is still a considerable skills shortage when it comes to experience in the industry.

During the coming years it will be pivotal for manufacturing companies to work closely with schools and universities to ensure that sector specific subjects are being well taught and promoted to students to encourage them to join the industry. Similarly, Manufacturers should also encourage older employees to gradually make the transition into retirement so valuable skills can be passed on prior to their departure.

PRODUCT DEVELOPMENT AND INNOVATION We all want the next big thing and we want it now! Today’s world

is fast paced and consumer driven – as such, in order for manufacturers to stay relevant they need to keep up with the quickening speed of product development and innovation.

The old story of the Hare and the Tortoise is extremely relevant here – it may be increasingly tempting to cut corners and compromise on quality to get your product to market at lightening speeds but ultimately your profit margins will pay the price.

Companies should become more structured in their approach to innovation and should implement procedures which ensure that a steady stream of new product ideas is kept in the pipeline. Reviewing innovation and market trends ensures that you will never be caught out and have to compromise on quality to make it to market.

THANK YOU!!!