The Top 5 Manufacturing Issues Keeping Executives Up at Night (infographic)
What’s keeping manufacturing CEOs up at night? From supply chain disruptions to a disengaged workforce and growing skills gap, there are challenges aplenty plaguing leadership teams. Here are the top five manufacturing issues along with solutions from USC Consulting Group that will help them sleep a little easier.
Problem: Retiring workforce
My best shift supervisor is retiring next month! He knows everything there is to know about the line. How can I possibly replace him?
“The median age of manufacturing workers is 48 and continues to grow older.”
Solution: Capture that knowledge!
Before your seasoned vets retire, create mentorship programs, have roundtable discussions and update manuals with their hard-earned know-how.
Problem: Skills gap + Jobs gap
I have positions to fill but I’m not finding any qualified candidates! How am I supposed to get the job done?
“Manufacturers will have 2 million jobs to fill by 2030. But there’s a skills gap out there. A sea of open jobs and few skilled people to fill them is a one-two punch.”
Solution: Build training into your budget
Skill them up yourself! Invest in training for new hires and partner with a local trade school or community college to target new grads.
Problem: Disengaged employees
Are my employees happy? It’s like they’re just going through the motions. Are they going to quit?
“Only 36% of U.S. employees are engaged at work and 74% are actively looking for a new job at any given time.”
Solution: Walk the shop floor
Talk to the team, ask how things are going and how you can help. If they’re short-handed, roll up your sleeves! Also, promote from within and invest in career development! It’s a proven way to build morale and engagement.
Problem: Supply chain disruptions
My line was down AGAIN because our overseas supply was stuck at a port. Again! We have high customer demand but can’t meet it because we can’t get the supplies we need!
“A 400% increase in shipping costs from China and a 45% increase in ocean freight wait times is expected to continue for 6 to 12 months, if not longer.”
It has long been suggested as idealistic and beneficial for the country, yet unrealistic. That is, until now. It’s time. Reshoring is a way for U.S. manufacturers to invest in the country and claim valuable subsidies, while also shielding themselves from any potential global supply chain issues.
Problem: Inventory management
All of my departments have a different view on inventory management! Some want excess inventory. Others want it just in time. Do we have enough? Too much?
Solution: Sales, Inventory & Operations Planning (SIOP)
SIOP expands on S&OP by adding a crucial component: Inventory. It helps you wrangle your inventory management and achieve the optimal supply balance.
Want to learn more? Read What’s Keeping You Up at Night? The Main Concerns of Top Executives.
These aren’t the only challenges keeping CEOs up at night. At USC Consulting Group, we have more than 50 years of experience helping manufacturers find opportunities for greater efficiency and productivity. Call us today to talk about how we can help you get a good night’s sleep.