The manufacturing industry is something that will not go away, as it is a vital part of your economy. However, if you are a part of that industry, you should know what to expect for the year 2020 and beyond. It will help you understand how to meet the potential demand and identify opportunities for your business.
Here is a quick summary of the expected outlook for the manufacturing industry.
A Bright Future
For the past 25 years, employment for U.S. manufacturing has declined; however, the future for U.S. manufacturing looks good. Most manufacturing leaders are very positive about their growth prospects for their business. Over the next five years, more than half of the leaders will expect their reviews to grow about 5% or more every year throughout the next five years.
While the manufacturing industry will expect more business throughout the following years, a new issue rises—meeting the demand. The market has strong growth expectations, some of which are increasing labor costs, price reduction pressures, rising material costs, and market volatility.
However, the manufacturing industry is trying its best to meet the expectations by hiring more experienced and skilled people, strengthening customer relationships, and improving production processes. Many of them also invest in areas that would help them with the demand and to satisfy their consumers, like gathering market intelligence.
While most of the leaders are trying their best to meet the demand, 45% of manufacturers haven’t made a particular goal to reduce cycle times for new product development. For the ones who made a plan, they will shorten cycle development times by making faster prototypes, improving the productivity of professional labor, and understand the market and customer needs better. Manufacturers also focus on leadership training more to attract and keep more experienced workers to cope with the demand and growth of the industry.
While the future may be bright, another issue lies with the uncertainty of price fluctuations. The profitability equation is significantly impacted by things such as fluctuating currency exchange rates, raw material prices, and oil prices. For any company to thrive and survive, the operations should be responsive to the market’s demands while being cost-efficient and competitive.
This is why many manufacturers focus on more skilled workers to get the best results possible. For instance, any spring manufacturer in Michigan can expect an increase in demand, strengthening its operations to provide quality products to its consumers.
A manufacturing company must stay agile to be profitable throughout the upcoming years. Most leaders mention how they want to become “agile”, which means they need to become more responsive to market realities. These aspects will help them manage market volatility and address the fluctuating costs of raw materials. While most manufacturers will share the same problems and potential growth, each company will face their own issues, such as location and unemployment rates.
The manufacturing industry for America is booming this 2020 and for the next few years. As long as the manufacturers can keep up with the demand, they are looking at several successful years.