Manufacturers wish they left supply chain shortages behind after the pandemic, but they remain top of mind. Concerns remain. According to KPMG, “71% of global companies highlight raw material costs as their number one supply chain threat for 2023.”
According to a study by Deloitte and The Manufacturing Institute, 2 million jobs could go unfilled in the sector by 2030. The cost in 2030 alone could potentially total $1 Trillion.
Manufacturing promotes safety and security and mitigates risk. Controlling your supply chain and mitigating geopolitical risk can become paramount overnight as geopolitical events occur, natural disasters emerge, and supply chain challenges arise (strikes, disruptions, shortages).
Clients are struggling to keep up with customer's changing requests. Order backlogs remain relatively high (depending on the industry), but customers are pushing orders out at the last minute, pulling orders in without notice, adding future potential orders, and changing requirements on the fly. Production is scrambling to keep up.
No client has enough high-skilled talent. In fact, it is the single largest issue facing executives. The skills gap is severe for high-skilled roles. Yet any company that wants to succeed is automating, digitizing, and utilizing advanced technologies such as robotics, additive manufacturing, and predictive analytics.
Global supply chains are on the move. Executives have been hit with the harsh reality that the risk (supply chain, geopolitical, cyber, IP, etc.) is far higher than they realized when they outsourced with an eye to cost.
Although we should always think about giving thanks, it certainly comes to mind more over Thanksgiving week. I would like to thank the LMA team, clients, family, and friends for not only a wonderful year, but also for propping me up when I need it, asking the hard questions, providing support, and much more. It takes a village!
Many circumstances have added up to create a massive war for talent. As I wrote in Brushware magazine, the skills gap is getting worse by the day. According to the Bureau of Labor Statistics, 4.3 million Americans quit their jobs in August which is a record-breaking month following additional record-breaking months.
During the pandemic, there was a mass exodus of talent as leaders decided to retire early, switch careers or just take a step back. On the other hand, the leader's job is becoming far more challenging. Not only has the last year required navigating the pandemic but now leaders are faced with scarce resources, more work and new challenges to tackle with extended lead times, inflation and rapidly changing customer conditions. What should leaders do?
During the pandemic, there was a mass exodus of talent. Talent started dropping like flies during the shutdown. People reevaluated their career and life. Several decided to retire early. Others decided it was a good time to change careers [...]
