2020 brought massive change for businesses in almost every industry. For manufacturers, the global pandemic had serious consequences for those that relied on parts and components produced overseas. As many businesses around the world halted operations, manufacturers in the U.S. found it difficult to continue their normal operations. Several OEMs utilized the help of U.S. based contract manufacturers to fulfill orders and keep up with demand.
Deemed an essential business by the United States government, manufacturers in the U.S. have done everything they can to stay afloat throughout these uncertain times. Many manufacturers even increased production to fulfill large orders for essential electronics and other medically necessary devices.
As mentioned above, many manufacturers have already made the switch to U.S. based production. Many more will probably follow suit in the coming months as business owners become increasingly worried about trade wars and tariffs threatening global supply chains.
There are many benefits of moving production closer to the customer. Benefits include quicker time to market, lower working capital, and increased resiliency. Although it will take more time for larger manufacturers to move production to the U.S., it’s expected we’ll see major strides to do so throughout the year.
Factory Floors Becoming Digital
As manufacturers look for ways to prevent downtime, it’s likely they’ll adopt more automation technology. Robots, sensors, machine learning, artificial intelligence, and cloud computing will all play a part in the digitization of the factory floor.
Manufacturers Will Meet Rising Consumer Demand
With so many people home, ecommerce sales are at an all time high. As consumer demand rises, manufacturers are expected to utilize contract manufacturing and advanced technology to keep up with demand.
Increased Investment in the Workforce
Despite increased use of automation, manufacturers will invest more in their workforce in 2021. Robots and other technology create higher paying jobs. Over the next few years, manufacturers will likely offer more training and education to factory workers in an effort to empower them to take on more responsibilities on the factory floor.
Means Engineering offers contract manufacturing services in Carlsbad, CA. Our comprehensive services include design services, production, and testing of a wide range of products and devices. Please contact us for information about our services.