Manufacturing is confronting challenges to maintaining economic expansion, consulting firm Deloitte said in a report.
“While overall demand and production capacity have hit recent highs, there are indications that the near-term outlook may not be as bright,” Deloitte said in a summary of the report.
The consulting company cited inflation and “economic uncertainty.” Manufacturing also continues with “talent challenges” such as retaining and finding employees, according to the report.
At the same time, Deloitte said projects 2.5 percent growth in gross domestic product in manufacturing for 2023.
The consulting firm surveyed more than 100 executives and other leaders in August. Respondents were in industries including machinery, electrical equipment, aerospace, and automotive.
Deloitte said surveyed manufacturers said they plan to focus on various technologies to boost efficiency over the next 12 months. Robotics and automation were cited by 62 percent of those surveyed. Other types of technology included the Internet of Things (39 percent), additive manufacturing (33 percent), and cloud computing (32 percent).
Manufacturing also will continue to develop smart factory systems because “these initiatives drive future competitiveness,” Deloitte said in the report.
With labor issues, respondents said their top challenges include retaining existing workers (75 percent), finding the right talent (74 percent), and maintaining competitive compensation packages (51 percent).
The number of people leaving companies on their own “outnumber layoffs and discharges, indicating substantial workforce churn,” Deloitte said. “This prevailing workforce shortage…is reducing operational efficiency and margins.”
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