Manufacturing in Challenging Environments: 8 Challenges the Global Manufacturing Industry Is Facing in the Modern Times

The sluggish growth in the global manufacturing sector finally shows slight hope. Yet amidst this, the massive, ever-changing beast isn’t immune to challenges!

Global manufacturers of all sizes today attest to problems, some so huge that even the once-mighty brands are slowly succumbing to them. Forget about the typical highs and lows in profitability and production levels or the adverse effects technology has had on the industry; the real challenges are enormous.

Let’s highlight some of the most pressing challenges that bedevil this industry today, shall we?

The Massive Aging Workforce

This is perhaps the biggest threat facing the otherwise rising industry. Baby boomers, regarded as the majority workforce, are nearing their exit from the service, which isn’t good. The main concern is that this group will sadly leave with the invaluable skills and experience that Generation X-ers and early millennials do not have.

According to Deloitte, there will be about 4.6 million manufacturing jobs over the next ten years. Out of this, approximately 2.4 million of them will be left unfilled because the incoming lot comprises those who grew up under the belief of education and merit instead of experience. This, of course, presents another issue to an industry already lacking a qualified workforce. It is an immense struggle that not even the automation and robotics wave will suitably solve altogether.

Sustaining the Environment

In the past, environmental sustainability advocates’ vocal voices were nonexistent, which significantly contributed to the then-manufacturing industry’s rise. However, things are entirely different today. The growth of environmental awareness has greatly changed the way manufacturing industries conduct themselves.

In this regard, sustaining the environment encompasses pretty much anything made in an eco-friendly way. It could be a product made from recycled material or an industry that has reduced carbon emissions. Fuelled by the practice, fondly known as the shift to ethical products, the industry is relatively more eco-friendly.

According to Nielsen, most millennial consumers prefer to consume a product whose production is sustainable or eco-friendly. Because the millennial generation will outnumber Baby Boomers in a couple of years, manufacturers who will stand will be eco-friendly.

The Terrific Rate of Technological Advancements

The manufacturing industry has always adapted to new technologies, but recent technological change has adversely affected it. Most global manufacturing behemoths have had to keep up with the competition to remain afloat. This has been costly, especially when buying newer, better-performing systems for their manufacturing processes, training their staff, etc.

These substantial investments have always almost come to nothing because, mostly, by the time the company breaks, better technology is invented. The latest of these is the emergence of better systems in robotics, the growth of Artificial Intelligence, and the use of vibrational detectors, among other technologies. Those manufacturers who’ve found the right balance between new industry workers and technologies and the old skilled employees seemingly have survived.

Regulating the Entire Industry

There’s a wave of increased regulation and compliance across the global manufacturing industry. The rules involve several factors, from health and safety to waste management or disposal and quality assurance. However, as this challenge can be regarded as a good thing and essential for the betterment of the whole sector, it has also proved to be a considerable burden for manufacturers.

Today, more than ever, these manufacturers have to exhibit total visibility throughout their supply chain. Manufacturers who engage in medical device production must pass the UDI (Universal Device Identification) regulation, just like manufacturers of chemical products, who rightly have to pass REAC (Registration, Evaluation, Authorization Restrictions of Chemicals) laws.

It is a measure to ascertain their compliance with quality standards and industry norms. Although it’s unavoidable in some countries, the whole procedure is hectic and financially draining for the industry players.

Maintaining a Balance between Production and Maintenance

Machine maintenance is an essential tradition that ensures that machines in any manufacturing facility maintain their peak performance. It involves many procedures, including replacing worn-out cables and wires, oiling moving systems, and performing other maintenance work.

However, maintenance sometimes hinders the industry’s overall efficiency. It’s normal for companies to delay or postpone preventive care or replace old, worn-out components when their machines seem to be doing fine.

Nowadays, this is another massive challenge in the industry because it usually creates unsafe working conditions and disasters. Whenn maintenance works aren’t performed, some problems are the risk of electrocution, unplanned or excessive downtime, and machine ineptitude. If only the manufacturer would address these challenges!

Regulating the Global Market

If the global manufacturing world were to combat all the other problems it’s currently facing, one issue that would be nearly impossible to solve would be regulating the market. The internet has greatly helped the sector grow, and controlling the industry is a mirage.

Thanks to the internet, procuring goods from zones where there’s plenty of cheap labor and its products are relatively less expensive is a click away. But while there’s no problem with that, its impact on competitor manufacturers at a disadvantage is immense, yet nothing can be done.

The global market unfairly leads to a tilt in how commodities are sold. The phenomenon has devastating effects, including bankruptcy, employee reductions, bailouts, and other untold problems. And as it continues, the real issue remains how the market will be regulated so that there’s fairness in how products are sold and shipped.

Patenting and Intellectual Theft

The harm attributed to the internet in the global manufacturing sector isn’t over without touching intellectual theft. With just about any new invention published on the web and many modern processes tied up to computers, nothing is as hard as protecting one’s story today.

On one end, manufacturers have to keep their most effective techniques top-secret and ensure their competitors never get to discover them. Consequently, they must protect their intellectual property from hackers and ill-behaved employees. They know that their whole organization finishes if any of these reach into the wrong hands.

But as it is a norm nowadays, one of these two feared crimes happens. And when it happens, the losses incurred normally are in inappropriate amounts, often resulting in the manufacturing company’s death.

This has led to countless manufacturing companies going above and beyond to enhance their patents’ security and thwart information leaks. Some of the measures adopted involve having the details of every employee in the company’s database and ensuring they all sign non-disclosure agreements.

Automation vs. Human Workforce

In the wake of the technologies and inventions in the global manufacturing platform, the challenge is whether it would be wise to reduce the human workforce at the expense of automation. It even worsens for humans because, while the aging majority population will soon exit and create space for millennials, mechanization is also growing in demand.

Every manufacturer today’s primary goal is to remain competitive, keep operating costs low, and keep growing. Of course, this has led many companies to choose to invest in machines and lay off the unskilled workforce. However, not all tasks can be digitized, and human input must be eliminated.

Tasks that involve maintaining data and handling logistics, procurement, and order fulfillment are machine-based. Many manufacturing procedures are still in the piloting stage and are expected to replace human workers.

Overall, any move in favor of machines can prove way too costly, even when some technologies haven’t proven to work beyond a reasonable doubt. And this is a massive challenge for companies wary of splurging millions or more investing in the same.

There’s more!

Apart from those above, the challenges in manufacturing environments are immense. Not only is it a challenge for the particular company, but it also affects uniformity on a global scale. There exists a growing concern amongst manufacturers about the rising healthcare costs for their employees, especially in countries where quality services are expensive.

Despite all these problems, however, there’s great optimism that the world’s manufacturing industry will keep growing. How it will handle the challenges remains a question for another day!