Although all industries are experiencing widespread changes, none compare to the manufacturing industry. After all, we are living in a technological revolution. Understanding the top five trends in the manufacturing industry can help you position your business for success in the second half of 2023.

#1: Added Automation

Automation is now found in most areas of manufacturing businesses, from lead generation to physical product production. In fact, studies show that automating offers in the sales process can increase the average order size by over 360%. Sounds too good to be true, doesn’t it?

This has led to 67% of marketing leaders using some form of automation in their sales functions. Another Gartner survey found that nearly 64% of manufacturers will adopt automated production scheduling systems by 2025.

#2: Increased Employee Retention Efforts

Another manufacturing trend to watch out for in 2023 is increased employee retention efforts. The past few years have been plagued with high turnover and difficulty attracting and retaining qualified talent.

The costs of replacing employees are significant, ranging anywhere from 50% to 200% of the employee’s base salary. It makes sense from a financial perspective to take a proactive approach to retention by offering productivity incentives, increasing benefits, and creating a positive work environment.

#3: Continuous Supply Chain Disruptions

Supply chain disruptions will continue to be a challenge in the last six months of 2023. Studies found that 76% of executives agree that their business is facing more disruptions in 2023 than during the pandemic.

Finding solutions to manage supply chain disruptions will be a priority for manufacturing business owners. This might involve placing larger orders, switching to domestic suppliers, or footing higher shipping charges.

#4: Outdated Equipment

Equipment is becoming obsolete quicker than ever, with technology at the forefront of innovation. Leaving equipment to pile dust in a corner isn’t ideal for growing businesses looking to maximize warehouse space.

This is why manufacturing businesses are looking for alternative ways to get rid of equipment sitting unused. One solution gaining popularity is selling these pieces of machinery on third party platforms, like IMS Supply.

#5: Expanded ESG Initiatives

Environmental, social, and governance initiatives are a hot topic in 2023. Investors care more about these factors, which means your business needs to understand the impact. More than 90% of businesses now have some form of ESG reporting built into their company.

Showing investors and consumers that you are taking a proactive approach to ESG can instill confidence to boost investments and sales. Especially with increased competition in the manufacturing industry, ESG isn’t something to overlook.

Summary

Which of these five trends have you noticed in your manufacturing business? Is it that you are automating more processes? How about noticing more equipment sitting unused? Whatever the case, it’s essential that you understand how the industry is changing to properly adapt.

About IMS Supply: IMS Supply is a leading distributor of maintenance, repair and operations (MRO) products and services with facilities in East and West Michigan and Kentucky. Through our MRO Asset Recovery Program we stock hard to find parts and supplies from thousands of different manufacturers at prices up to 70% less than MSRP. Contact us today to find out how we can help your business.

Follow @imssupply