6 challenges in front of manufacturing sector in 2017

Nowadays every day we come to know about new tech developments and advancement in various sectors. These changes occur in rapid pace and is the reason for various innovations in manufacturing sector.

Though the industry is seeing rapid growth but, on the other hand, it is also facing some strain. For the other side that we don’t see is that it has been beleaguered by hurdles. Some struggles are an ongoing procedure while some are forecasted and the industry needs to get prepared for it well in advance.

Here are the 6 problems that the manufacturing sector would have to face in the year 2017:

1.       Lack of Skilled Training


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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 of shutting down the business.










2.       High Regulations and Restriction


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Graphshowing correlation between regulations and budgets
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 in the supply.


3.       Development and Innovations

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As said innovations form a big part of 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 for 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.


4.       Healthcare costs


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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 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 US as their competitors are free from this type of cost and can set aggressive prices for their product in the market.


5.       Demand

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This factor generally isn’t a matter of concern, as since 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 into oversupply and disrupt the logistics and inventory. The manufacturing industries always need to have a backup plan for such circumstances.


6.       Environmental Issues


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Source: Ref=www.furturescape.in

Companies are now adapting 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 decline in their brand reputation more than the harm it may cause to 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. Manufacturing industry is and will keep expanding but the obstacles with them on their way will also be needed to deal with.

Register at SolutionBuggy for more information on manufacturing projects and solution.

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7 comments

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Monday, September 12, 2016 delete

2 very important reasons for less success in Manufacturing are a) less focus on vocational courses at school/pre-university level &
b) disparity of wages v/v cost of living at all levels.

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M JEGANNATH
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Monday, September 12, 2016 delete

Lack of skilled training and Trained recourse are going to be the biggest challenges.

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M JEGANNATH
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Monday, September 12, 2016 delete

one is Lack of Training and getting skilled resource are going to be a huge hit. we can have manpower but can't expect the better quality.

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SolutionBuggy
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Wednesday, September 14, 2016 delete

Thank you for your comment. For updates on manufacturing industry you can register to www.solutionbuggy.com

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SolutionBuggy
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Wednesday, September 14, 2016 delete

Thank you for your insightful comment. Will share more post on training. For updates on manufacturing industry you can register to www.solutionbuggy.com

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Unknown
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Thursday, November 10, 2016 delete

Key issue would be how to bring talents to come to manufacturing sector compared to IT industry which is seen as more lucrative for young generation

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Shankar K R
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Thursday, November 10, 2016 delete

Unorganised and Poorly skilled people charge very high cost for their services in maintenance sector is of serious concern.

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