2022 was a big year at Garvey. Looking toward the future, we must first say thank you to all of our customers for putting your trust in us to maximize your throughput.
Our year was capped off by the return of PACK Expo Chicago, which came back after a four-year hiatus due to the pandemic. We helped new and returning customers keep their lines moving in 2022 and look forward to continuing that mission into the future.
As we head into 2023, let’s look at some manufacturing trends and challenges that will likely impact the industry.
Rising prices for materials and services have forced manufacturers to make some tough decisions to remain profitable. Many have performed some combination of raising prices on their products and reducing company costs to combat inflation.
The root causes of inflation in the manufacturing industry include rising labor costs, fuel surcharges, and supply chain disruptions, and they will likely remain in 2023 to some degree.
Every trend we mention in this list won’t be directly related to inflation. Still, there’s no doubt that inflation will be at the top of most manufacturers’ minds for the foreseeable future.
Manufacturers aim to cut costs by implementing technology that automates processes, reduces labor needs, and mitigates human error.
For example, at Garvey, we design accumulation, conveyance, and distribution solutions that help companies do that and more. Our accumulation systems allow operators to maintain more control over line production and prevent errors and accidents that affect productivity and increase costs.
Companies that invest in technology to enhance their productivity continue to show resilience in an ever-changing environment where inflation stubbornly increases the cost of doing business.
Tight Labor Market
According to an industry outlook from Deloitte, job openings in manufacturing are still at an all-time high. Nearly a quarter of the manufacturing workforce is over 55, so companies must continue doing everything they can to attract and accommodate a new generation of professionals to replace them.
Adding technology will help, but it won’t bridge the gap ultimately. The competition to recruit and retain top talent will be challenging among manufacturing companies, so they will likely do as much as possible to help employees achieve a healthy work-life balance, attain their career goals, etc.
Implementing safety protocols, training, traceability, and other initiatives to sustain a happy, healthy workplace will continue to be a priority for manufacturing companies in 2023.
Preventive and Predictive Maintenance
Another way manufacturers will see an opportunity to become more resilient is through preventive maintenance. Data extraction and analysis have become much more sophisticated to enable companies to understand better when and how their equipment goes down.
Manufacturers can benefit from maximum uptime and keep their line moving by identifying and resolving issues before a complete breakdown.
There are many reasons why manufacturers will start insourcing more in 2023. Supply chain disruptions and rising fuel costs have put a greater emphasis on manufacturing companies to find local suppliers and simplify their logistics.
Growing outsourcing costs, supply chain risks, advanced robotics, and other technology, and consumer demand have led to a renewed interest in nearshoring and a domestic production and supply uptick.
Garvey equipment is made in the USA to ensure the highest quality and compliance with FDA standards. Learn more about our accumulation solutions to maximize your productivity today.