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
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
 |
| 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
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
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
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
 |
| 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.
7 comments
Write comments2 very important reasons for less success in Manufacturing are a) less focus on vocational courses at school/pre-university level &
Replyb) disparity of wages v/v cost of living at all levels.
Lack of skilled training and Trained recourse are going to be the biggest challenges.
Replyone 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.
ReplyThank you for your comment. For updates on manufacturing industry you can register to www.solutionbuggy.com
ReplyThank you for your insightful comment. Will share more post on training. For updates on manufacturing industry you can register to www.solutionbuggy.com
ReplyKey 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
ReplyUnorganised and Poorly skilled people charge very high cost for their services in maintenance sector is of serious concern.
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