Smart businesses stay one step ahead of rising costs, supply chain variation, and raw materials availability.
The manufacturing industry has seen rapid growth in recent years, while new legislation continues to clear the path ahead for manufacturing growth and impact. Yet with that growth comes unique challenges for both manufacturing managers and workers. From process issues to engagement hurdles, these obstacles can hinder business growth and lead to increased turnover.
To learn more about manufacturing successes and struggles, we combined insights from 1,400 manufacturing leaders and 1,200 manufacturing workers globally to create the “Future of Work in Manufacturing” report. Here are the top challenges manufacturing managers and workers are facing today, along with some solutions to help create a more sustainable business—now, and well into the future.
According to our report, the biggest challenge managers faced in 2024 was helping ensure safety and compliance in their factories—for example, taking steps to make sure workers are safe on the factory floor, that they complete compliance training, and that machinery and processes align with local and regional standards.
The second biggest challenge is managing a diverse team that includes a wide variety of roles, skills, and locations across the manufacturing company—as well as a range of individual backgrounds, genders, races, and interests.
Finally, manufacturing managers need to consistently hit production targets, even in the face of supply chain disruptions, mechanical issues, understaffing, or insufficient forecasting.
According to our report, manufacturing workers say the biggest daily challenge they face is the increased cost of raw materials. When asked why an increase in the cost of raw materials would impact frontline workers, they responded that increased costs lead to tighter budgets, which in turn affects their ability to access resources needed for their job. These high costs can also contribute to heightened stress due to the potential for job insecurity if the company can't manage the increased financial strain. In other words, managers are that worried their organization's mishandling of increased costs will impact them directly.
Their second biggest challenge is their overall workload, which could mean there’s simply too much work to do, or that staff turnover has resulted in increased workloads due to worker shortages, or that companies don’t have the proper training or resources to handle the required tasks.
Another challenge is supply chain shortages which, like the increased costs of raw materials discussed above, can impact workloads and job safety if not properly managed by leadership. Workers are also challenged by bad supervisors who communicate poorly, show favoritism, and lack empathy. Finally, managers struggle with having to use outdated technology that slows productivity and on-the-job.
The above presents a variety of challenges across the company that must be addressed in order to create a healthy, future-ready organization. Here are some steps manufacturing leaders can take to address the above concerns, which will in turn improve morale, productivity, and impact:
Implement a digital compliance tracking system: Use technology to monitor compliance with safety standards and regulatory requirements in real time. This can help ensure that all aspects of a factory’s operations meet safety codes and that any deviations are addressed immediately.
Tailor your communication strategies: Develop communication protocols that respect and address the diverse communication styles and preferences within the team, possibly supported by technology solutions that facilitate clearer, more inclusive communications.
Utilize advanced forecasting tools: Manufacturing leaders can use AI, big data, and robust project management tools for better forecasting accuracy. Predictive analytics can help anticipate demand more accurately and plan production schedules that align with market needs.
Discover more affordable materials: Invest in material alternatives research to mitigate the rising cost of raw materials. Explore alternative materials that could be cheaper or more sustainably sourced, reducing dependency on volatile markets.
Invest in automated task management systems: Implement systems that can help evenly distribute workloads and track completion, helping ensure that no individual is consistently overburdened. Implement digital tools for real-time feedback on job satisfaction related to workload, which can help management adjust assignments proactively.
Promote upskilling and other training programs: Invest in training programs that not only cover the technical aspects of manufacturing leadership but also focus on soft skills like communication, empathy, and conflict resolution.
Manufacturing leaders need to be aware of rising challenges in their organization and take quick action to mitigate them. This may include adopting more technology, taking steps to increase worker engagement, reducing workloads, or implementing new policies to address workplace safety issues. Taking action to address challenges today builds the foundation for future growth and success tomorrow.
Read the “Future of Work in Manufacturing” report here.
