The global economy relies heavily on the enormous wealth and employment of an Industrial Supply Company and other manufacturing sectors. However, growth and efficiency can be impeded when manufacturers face many obstacles and grow concerned about their ability to overcome them. Industrial supply companies like ours live by the motto that a problem faced by a customer is a problem faced by us. So, in this blog, you will get 10 of the manufacturing sector’s most challenging issues and how we would solve them, or at least make a modest attempt at doing so. Let’s start
Manufacturing Challenges and Solutions with Industrial Supply Company
Manufacturing industries face numerous challenges, from workforce shortages to fluctuating material costs, all of which can hinder productivity and profitability. Partnering with an industrial supply company can help address these obstacles by providing strategic solutions such as streamlined procurement processes, technical support, and regulatory compliance assistance. By leveraging industry expertise, manufacturers can implement more efficient systems, optimize resources, and stay competitive in a demanding market. The following are the challenges and their solutions.
Deficiency of Competent Workers
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The Challenge
There is currently a profound and dire lack of skilled professionals in the manufacturing sector. According to the Manufacturing Institute, the industry may face an absence of 2.1 million workers by 2030 due to a skills gap. That is a manpower gap at the least and a productivity as well as profit gap for one segment of what can only be described as one missing element in the innovation chain.
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The Solution
This issue has at least one straightforward potential remedy. Industrial supply companies can address this problem directly and work hand in glove with the sector’s trade associations and educational institutions. By doing so, they can provide much-needed training virtually just in time. This training can come in the form of workshops, on-the-job experience, and better-coordinated apprenticeship programs.
Supply Chain Disruptions
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The Challenge
It has become a global trend that when an economic hub in the world stirs up an event, it shakes the supply chain and disrupts it. The COVID-19 pandemic, of course, is more recent and severe than other examples of such a phenomenon.
But when we look back over the past twenty years and the kinds of events we have lived through, we see what a hit they (and we) have taken economically and regarding supply chain security.
Seventy-five percent of companies report having been affected by recent supply chain disruptions. Three in 10 have been hit hard, with a 5% or more significant impact on revenue.
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The Solution
With a comprehensive industrial solution provider, you can have diversified sourcing strategies and contingency plans for the parts of the supply chain they cannot directly control. These companies collaborate with multiple suppliers and logistics partners, allowing their customers and manufacturers to assemble complete, more secure packages of necessary variables. As a result, the customers and the customers’ customers are better able to keep rolling along.
Inflation and Rising Material Costs
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The Challenge
Inflation has affected all parts of the economy and construction has not been left behind. Many construction industries have recorded some of the highest inflation rates today and this was recently higher than 14 percent per annum. Meanwhile, the earlier modest increases for steel and aluminum have become annualized increases of over 100 percent. These substantial upticks in costs and the impact of labor shortages have substantially affected our bottom line and consequently compelled us to revise our model.
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The Solution
Companies with an industrial solution partner use their far-flung networks to obtain better prices and more advantageous bulk purchasing arrangements. They serve as intermediaries, helping manufacturers secure favorable terms that allow them to control costs and (mostly) remain profitable.
Changes in Regulation
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The Challenge
The manufacturing industry solutions have to contend with a constantly shifting regulatory environment. Keeping up with new regulatory demands is both labor-intensive and expensive. Take, for example, the frequent updating of standards by the Environmental Protection Agency. Complying with these updates can involve a considerable outlay in human labor and necessitate a significant diversion of funds, sometimes more than the standard budget allows. If a manufacturing facility does not comply, the penalties can be severe.
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The Solution
Industrial supply companies carefully monitor the ever-changing regulatory landscape. They proactively ensure that their customers maintain compliance with applicable laws and regulations. These supply firms leverage their expertise to serve as regulatory affairs resources for their customers. They effectively act as go-betweens, distilling important information from the regulatory authorities and passing it on to the industrial firms they serve.
Trends in Consumerism
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The Challenge
Manufacturers face the challenge of shifting consumer preferences; they’re not just nudging toward sustainability but electrifying it. “Sustainable” is not good enough. Consumers want products that are not just sustainable but also made ethically. Pregunta surveyed the “up” persuasion of 60% to 70% of this conversation regarding these types of public society’s inclination toward premium pricing for sustainable products.
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The Solution
Industrial solution providers help manufacturers adopt an environmentally sustainable business model. These companies collaborate with their clients to create eco-friendly production processes and materials. This collaboration largely serves to meet current consumer demands for sustainable products and enhance the manufacturers’ image.
Protecting Data
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The Challenge
The digital age has made the manufacturing sector susceptible to various cyber threats. According to IBM, the average cost of a data breach for a manufacturing company is $4.24 million. Manufacturing is not alone; all sectors are becoming more vulnerable to increasingly sophisticated cyber attacks.
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The Solution
Manufacturers can rely on robust cybersecurity solutions implemented by industrial supply firms. These protective measures, along with resources and tools provided by the supply firms, secure sensitive data, allowing manufacturers to work with the confidence that their operations and, by extension, their customers are safe from cyber threats.
Automation
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The Challenge
Although automation offers big benefits, many manufacturers find it challenging to adopt. They have to integrate new technology into an existing system that may itself be composed of many semi-automated or manual operations. Manufacturers worry that integrating new technology might cause a significant disruption in their processes or production.
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The Solution
In the industrial supply realm, companies have automation and technology integration expertise. They help manufacturers implement automated solutions that increase productivity and decrease disruptions. Their support and consultation make a difference.
Capacity Constraints
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The Challenge
Manufacturers often encounter capacity problems that prevent them from scaling operations and adversely affect their ability to fulfill current demand. In a recent survey, Deloitte found that 43% of manufacturers reported being unable to meet current demand because of limitations in capacity.
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The Solution
Manufacturers of all types call upon industrial solution providers to help them optimize production processes. These solution providers’ insights into workflow management and equipment utilization are invaluable and enable businesses to increase their output to meet marketplace demand.
The many difficulties that confront the manufacturing sector can be overcome. With the aid of industrial supply firms and an eye to tomorrow, today’s manufacturers are well-positioned to meet current challenges and produce enhanced value for their stakeholders. Manufacturers to develop well-aimed marketing strategies. The supply company serves as a helpful intermediary in that relationship because it already has access to a wealth of helpful industry intelligence.
Upkeep and Other Costs
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The Challenge
Unanticipated breakdowns can hit equipment hard and wreak havoc on production. A study by the Aberdeen Group puts the average hourly cost of production downtime at a staggering $260,000, and it can sometimes rise much higher, depending on the circumstances and the kinds of equipment involved.
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The Solution
To fight these problems, companies that supply the industrial sector deliver an all-encompassing suite of services tailored to the seemingly simple but often elusive goal of keeping equipment running well. Those services and their suppliers fall under the generics of maintenance and repair, but the actual content of what is provided is anything but generic—once you understand that what’s also offered is a clear path through the labyrinthine challenges that often beset manufacturers.
Drawing in Competent Prospects
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The Challenge
A marked increase in competition makes it more crucial than ever for manufacturers to draw in competent prospects that will enable them to grow and maintain their revenue streams. Yet many of these companies have trouble reaching out and engaging the right segments of the customer base to make them worthwhile and have them pay dividends.
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The Solution
Industrial supply companies are uniquely positioned to help manufacturers create effective marketing strategies. Their deep industry knowledge and advanced analytics allow them to understand their clients’ businesses at a superior level. They use this understanding to assist their clients and manufacturers in identifying good prospects and increasing the quantity and quality of their sales leads.
Choose Permik for Lifetime Solutions
Working with an industrial supply company can enhance efficiency and profitability throughout the manufacturing sector. With Permik Industrial, you will get essential services that help businesses in the industry thrive in a highly competitive and regulated environment. The advantages run the gamut from workforce development to regulatory compliance, and they can even help optimize something as crucial as the supply chain and a focal point of profit and intelligence in any manufacturing operation.
Understanding the problems and taking full advantage of the resources supplied by industrial solution providers allows manufacturers to prepare for and succeed in a changing and challenging market: a market where even long-established players can stumble and fall.
For more detailed information about how our company can meet your manufacturing needs, read our article What is an Industrial Supply Company?
