December 2022 | Report

2023 Outlook: The Future of the Manufacturing Industry

Don’t let uncertainty and disruption slow growth strategies and long-term goals of resiliency and sustainability

Priorities have changed for manufacturers over the last calendar year. A looming recession has added to the pressures that inflation brought on, and resiliency is now top-of-mind for manufacturers who dealt with unprecedented supply-chain issues last year—combined with the ongoing trends of talent shortages and unfilled positions in every subsector that threaten the industry’s future.

Uncertainty—both in the short term and long term—will require bold decision-making from manufacturing industry leaders. Those who proactively invest in digital capabilities and processes to drive value from data will reap the benefits—in their operations, supply chain, workforce, revenue generation, and drive toward a sustainable future.

2-Minute Takedown

Digital

It’s natural to pause and take a wait-and-see approach with the current economic downturn to see where you should invest. But a digital future is inevitable across all industries, and those in the manufacturing space who are proactive about continuing to build out their capabilities will outpace their competitors when these current challenges subside.

Supply chain

Accentuated by the pandemic, the need for more resilient and agile supply chains is critical as manufacturers prepare for future, inevitable crises, and disruption. Digitally enabled supply chains will help increase visibility, agility, and resiliency across their business-critical supply and partner networks.

Workforce

Attracting and retaining a quality workforce—both now and in the future—is a key challenge all manufacturers will need to address in 2023. Improving vision and culture (especially toward younger generations) and investing in skill development will help employees feel prepared and empowered in their roles in the short term—and set you up for future successes.

Profitable growth

Amid uncertainty, rising costs, and slowing demand – manufacturers are focused on cost reduction and driving operational efficiencies. Revisiting go-to-market strategies, along with customer experience can lead to more predictable revenue streams, customer loyalty, and sustainable growth.

Sustainability

Even in a slowing economy, manufacturers should continue to stay the course with their sustainability efforts and use as another lever to build resilience, reduce costs, retain market share, and create value. Also, aligning your digital journey with the sustainability journey can advance both goals and drive greater overall return on investments—and when the economy rebounds, those who have demonstrated progress will only have strengthened their competitive position.