Revolution of Manufacturing Industry from Ascendancy to Dependency

It is said that the Manufacturing industry is the backbone of any developed and developing countries economic growth. Manufacturing makes up to 16% of global GDP. With the global outbreak of Covid-19 affecting the US and global market, the manufacturing industry is in desperate need of an upgrade.

The first major shift came during the 18th century what we now refer to as the Industrial Revolution. The revolution was actually to automate human efforts and create machines to do heavy work. Fast forward to the present day our manufacturing systems are primarily machine-dominated.

 Few predictions are i.e.

Manufacturing will grow faster than the general economy, and production will increase By 2.8% from 2018 to 2021.

Half of all manufacturing supply chains will invest in supply chain resiliency and artificial intelligence. The result might see productivity improvements of 15% By the end of 2021.

75% of all manufacturing units will employ more staff than any other industry By 2024.

These predictions might not come true shortly as the economy sees a slowdown. 

Manufacturing industries are often viewed as profit-making tools for their shareholders. But for citizens and employees and the whole nation, they include broader perspectives. Too much attention is given on beating the competition and cost reduction has harmed not only the impact on society but the organizations itself.

Emerging nations such as India, Brazil, Russia, and China have already recognized this value of manufacturing. They have been generating tremendous economic gains from not only the production of these goods but also the design. However, they deal with issues such as rising wages, increasing environmental impact, and quality concerns.

Employment in the manufacturing industry was at an all-time high in 2018. But last year the employment percentage was reduced to 6000 jobs per month in certain parts of the US, which is relatively lower than usual. 

Reports are to be believed 80% of manufacturers are already reporting a shortage of qualified applicants for skilled and highly-skilled production positions. Manufacturers will have to deploy decisive hiring practices to overcome the labor shortage. There might be a time where production mess impacts their abilities to meet demands even further.

The seasonal changes in the associate industries such as Textiles & apparel, agriculture, Transportation, etc can impact the manufacturing industry. The demand might be more if the supply is not sufficient then there is a chance of scarcity. This can cause the manufacturing industries to produce limited units with less manpower involved in it. 

As difficult as it is to keep up with the market, those who embrace the future of technology for their enterprises can expect improved results. A survey indicated that 45% of participants experienced better inventory control and 40% had improved production plan performance with technology enhancement. 

Manufacturers in the United States export almost half of U.S. manufacturing products. Last year, manufacturers across the United States exported about $650.5 billion in goods to FTA countries or 48.3% of the total value. 

 The right goods must be produced at the right value, quality, and volume that the market requires. Goods must be created with innovative sustainable processes, most equipped employments to support the economy of every regional.

For industries, challenges are to maintain supply chain management and maintain a cordial relation among the hierarchy of the organization. While uncertain, challenging times are ahead for the manufacturing industry. Embracing the future while simultaneously addressing risks can yield rewards and increase the possibility of sustenance. The political, environmental, condition matters a great deal for the economy to prosper. The manufacturing industry can only thrive under adequate coordination of human, machine, and nature. It’s a relatively small price to pay for greater achievement.