The Covid-19 pandemic exercised a devastating effect on the US manufacturing sector, as had been the case with almost all industries. Now, things are slowly coming back to normal. But, the market experts are of the view that it’s going to be quite some time before total normalcy is restored. Here, we will focus on some important points of the country’s manufacturing sector.
- This is one of the primary reasons why the USA manufacturing industry was gravely hit by the Covid crisis: excessively relying on globalization. Over the last few decades, US manufacturers have outsourced a major chunk of their operations. Consequently, the sector was unprepared when Covid first struck.
- The US manufacturing industry had displayed over-dependence on China, for various products. And, China was the first country to be impacted by Coronavirus. As a direct result of that, there was a paucity of crucial products in the US during pandemic times.
- Many of the small-scale manufacturing entities in the USA are now facing the issue of increased indebtedness, directly attributable to the pandemic. It is imperative for these smaller players to collaborate with big businesses, to survive, and thrive in the markets.
- It’s being projected that large-scale manufacturers won’t take too long to get back to their pre-pandemic position. These businesses possess the financial strength to achieve that. It is expected that about five more years will have to elapse before the overall manufacturing sector fully recovers.
- Post- Covid, the manufacturing industry of the US has been severely affected by a shortage of manpower. A huge number of employees in the sector lost their jobs, in the initial stages of the pandemic. Factories and plants now need to compensate for that and recruit skilled people.
In this respect, it’s indispensable that companies redefine manufacturing jobs and make them more flexible. It is only then that new talent can be brought into the organization. Ignoring this all-important aspect will only aggravate things for the industry.
- Another disturbing fact is that there was an alarming rise in instances of cyber attacks during pandemic times. Even manufacturing units weren’t left untouched by these attacks. Therefore, manufacturers are relentlessly striving to strengthen security, by incorporating the concerned technologies into their everyday operations.
- As the Covid intensity is now steadily lessening, staff related to core manufacturing have to resume working from factory premises. Employees playing a supportive role in core manufacturing still have the option of providing services from their preferred locations.
- Though the economy is gradually picking up momentum again, yet; disruptions in the supply chain are still present. The major reason for that perturbing aspect is that; approximately fifty percent of the manufacturers depended on only one/few suppliers operating from distant geographic locations. The US manufacturing companies now need to expand the scope, in this context. They have to adopt innovative strategies as well as the latest technologies to resolve the challenges posed by the above disruptions.
- The USA manufacturing industry is witnessing an incessant increase in the integration of smart technologies into the manufacturing processes. This is making sure that enhanced efficiency is seen, with a simultaneous decline in costs. The technologies are taking care of the crucial matter of employee safety, too.