If you operate within the manufacturing industry, you will know only too well how things have changed in the last few years.
Predominantly due to the pandemic but also consumer spending habits and the rising cost of overheads, there are many new challenges facing manufacturing businesses.
Whether you are currently struggling to keep your head above water or you want to identify any potential problems before they occur, read on to discover the five most common challenges facing the manufacturing industry, plus how to overcome them.
- A lack of skilled workers
One of the most prominent problems in the manufacturing industry right now is a lack of skilled workers. A combination of experienced workers heading to retirement and young workers not understanding the sector has led to a worrying decrease in the talent pool for manufacturing businesses.
To solve this problem, businesses can look to take on unskilled workers and offer them on-the-job training.
- Change in consumer spending habits
Since the pandemic and due to the cost of living crisis, consumers and businesses alike are a lot more cautious about where they spend their money. This does not mean that they are not spending, but that they are being more careful about who they spend their money with.
To make sure that it is your manufacturing business that is getting the trade and not your competitors, you need to try and offer some form of added value on top of the goods or services you provide.
- Attracting new leads
If you are managing to retain existing customers but struggling to attract new ones, you are far from alone. A common problem within the manufacturing industry, tempting customers away from their preferred manufacturer is a lot harder than it looks.
That being said, it can be done if you adopt digital marketing strategies that are designed specifically for B2B manufacturing companies, such as organic search marketing.
- Rising overheads
Are your overheads significantly more expensive than they used to be?
With a rise in energy prices and many suppliers charging more for the same services, it has never been more expensive to be a manufacturing business. Furthermore, if you have recently expanded your business, your overheads will naturally increase.
While you cannot change the cost of your overheads per se, you can make your processes more productive and cost-effective to counteract these increases.
- Expensive technologies
There is no denying that new technologies can make your business work smarter. However, what happens if you can’t afford these new innovations in the first place?
There are so many amazing technologies on offer for manufacturing businesses, such as cloud manufacturing software, robotics, and automation tools, all of which can help to streamline operations and cut costs.
If the latest technologies are not within your budget, there are less expensive innovationsyou can try. Furthermore, many software systems offer free trials for limited periods of time that can help you decide what you need and what you can do without.