The manufacturing industry has long been seen as one of the biggest and most profitable industries in the world. However, that’s not to say there aren’t plenty of problems occurring. In fact, there are now more problems than ever before thanks to numerous reasons. In this piece, we take a look at the three biggest problems facing this industry in 2017:
An Abundance Of Competition
Competition is rife in any industry, particularly manufacturing. However, there seems to be more competition than ever as more UK manufacturing businesses keep cropping up. Now, take into account the huge decision for the UK to leave the EU, and you can see why things are getting more intense. Companies don’t know what sort of trade deals we’ll get with other companies, so, what’s the answer? They turn to local manufacturers to source their goods. People are catching on to this, and are starting more manufacturing companies. As a result, the industry is just full to the rafters of competition, which can end up being a problem. Competition is healthy, but too much competition can suffocate many small companies within the industry.
Too Much Technology
Believe it or not but the manufacturing industry is at a moment where there is almost too much technology. Now, technology is largely seen as a positive thing in this industry, as it can easily improve many aspects of business. However, there is one big drawback that causes problems for many businesses. The simple fact is, technology is constantly advancing, and manufacturing workers struggle to keep up with all the fancy new equipment, etc. As such, businesses are having to deal with workers that don’t know how to operate machines anymore. So, they’re left with the dilemma of trying to train them or firing them and hiring new employees. Training is the best option, and there are things like CNC training courses for computer numerical control equipment – one of the trickiest pieces of modern tech to get to grips with. Sending workers on courses helps train them, but it will also mean a lot of time is wasted away from the business. So, technology is something of a double-edged sword for manufacturers right now.
Manufacturers all need raw materials to help put things together. The problem is, the source of these raw materials can be very dubious. For example, a huge story broke the other day about cobalt mines in Africa where children are being used to mine for cobalt which is then sold to high-profile smartphone manufacturers. This type of issue is a huge problem in the manufacturing industry as companies now have to be wary of where they’re getting their raw materials from. As a result, businesses might have to switch sources and start paying extra to get materials from a source that’s humane and doesn’t rely on child labour.
There are some serious issues within the manufacturing industry, and some are easier to solve than others. With that being said, there’s still a lot of money to be made here. So, if you own a manufacturing company, just be wary of the problems that can occur.