There is light amongst the darkness as Manufacturers are staying positive during the post-pandemic crisis
It’s no secret that a recession could be upon the world, even as quickly as the end of 2022. With many complications across the board, from inflation to materials shortage, supply chain issues and negative growths - it seems like a dark horizon for many businesses. However, there is light at the end of the tunnel and despite these ongoing challenges, manufacturers have experienced it before and are aware of what’s to come.
What’s the current state of the manufacturing industry?
Businesses across multiple manufacturing sectors are in fact, busier than ever. According to Forbes, American manufacturers, especially custom part manufacturers like machine shops and fabricators seem to be continuing on with high demands and showing no signs of slowing down. There are predictions of a consumer recession which is to be expected with the rising costs of living and inflation of fuel, energy and more. We’ll be seeing less purchases of goods such as electronic devices, with the public needing to prioritise their spending; however, the aviation industry doesn’t seem to be affected. In fact, the public are making up for the lack of travelling during the pandemic that airlines are purchasing more planes. For B2B businesses there are less chances of challenges here, as they aren’t directly impacted.
Manufacturing businesses who support discrete components and custom parts are able to support many industries, reducing the chances of losing trade. Post-covid, businesses that had to lay off workers and sell through inventory suddenly needed to revert back, which in turn caused a spike in orders. With businesses wanting to make sure they didn’t run out of their inventory, post-covid they decided to order more than what they needed, which was a plus for manufacturers fulfilling the orders.
Post-pandemic challenges are still ongoing in the global supply chain, most notably the zero-covid policy that China has in place. Whilst it’s hugely important to take precautions, the policy which has been announced this month means that city-wide lockdowns will continue until 2027, which have created huge supply chain issues worldwide. These concerns mean that countries are not wanting the unpredictable future of relying on other countries, resulting in more onshoring. With this shift in the global supply chain this can be positive for the U.S., bringing more manufacturing and jobs to light thus adding to the economy.
“The National Association of Manufacturers (NTMA) estimates that for every $1 spent in manufacturing, another $2.68 is added to the economy: the third highest multiplier effect of any industrial sector.” - Forbes
So what’s next for the Manufacturing sector?
As challenges continue, it’s important to embrace the inevitable change that’s going to occur. Change is always present, but now more than ever as we navigate our way through an abundance of factors impacting the way we work and live. Today, those who aren’t finding new ways of working and looking towards their futures risk being left behind. A couple of things to consider if you're a business in manufacturing:
- Innovate! Embrace technology and industry 4.0 as there are many benefits to innovating within such as achieving higher efficiency and cost savings.
- Invest in your business. Your team is what makes your business run and without them, you cease to exist. Invest in your workforce, whether it's extra training, or hiring new staff. Investments can be in the form of costs and time, so remember to show your appreciation after such a difficult time.
At TyTek Industries, we’re passionate about providing a valuable service which serves your needs. We are with you every step of the way, from design to manufacture and we pride ourselves on achieving the best result. Don’t hesitate to get in touch with us, we’re based in the U.S., U.K. and Asia!
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