10 Manufacturing Statistics That You Cannot Ignore in 2023 & Beyond

The manufacturing industry has recently seen a significant boost in demand and production capacities, but the near-term outlook is uncertain with concerns around inflation and economic instability. Compounding these challenges are acute talent shortages, supply chain disruptions, cost pressures, and cyberattacks. In this complex landscape, proactive and strategic leadership is imperative for manufacturers to sustain growth and remain competitive in the 2023 market.

Let us look at ten important statistics that business leaders in the manufacturing sector must consider while building their short and long-term strategies:

Manufacturing output will decline in 2023, according to the Q4 Manufacturing Outlook survey by Make UK/BDO. The survey predicts a -3.2% contraction, following the -4.5% forecasted contraction in 2022. Despite a strong rebound in 2021 due to the pandemic, the industry is expected to face continued contraction in the coming years.

The manufacturing industry may face a shortage of up to 2.1 million workers by 2030, according to a new report by NAM. To address this shortage, manufacturers must not only attract new talent, but also retain their existing workforce. This will require strategic recruitment efforts and a focus on employee engagement and retention.

The Deloitte outlook survey finds that 72% of surveyed executives identify the shortage of critical materials and ongoing supply chain disruptions as one of the primary uncertainties for the manufacturing industry in the near future.

CNN’s latest report highlights growing inflation and recession risks affecting the manufacturing industry. 75% of manufacturers report a worsening of inflationary pressures compared to six months prior, with 54% also facing increased competitiveness and profitability challenges due to rising prices.

A report by FICTIV indicates that customer expectations have reached new heights and show no signs of slowing down. 97% of respondents observe evolving customer demands. To satisfy customers, it’s crucial to understand their changing wants and needs.

A recent study, “Cyber Security: UK Manufacturing”, exposes a concerning trend: 42% of UK manufacturers have experienced cybercrime in the past 12 months. Neglecting this issue is not a viable option for businesses. Although heightened awareness in the sector is positive, significant progress remains to be made.

The Smart Manufacturing Market is poised for exponential growth, projected to reach a staggering US$ 365.22 billion by 2028, as per the latest forecast by The Insight Partners. The growing use of robots and automation due to implementation of AI and other advanced technologies is expected to boost the market growth.

The Manufacturing Institute’s report reveals that 64% of surveyed companies acknowledge the significance of Diversity & Inclusion as a crucial aspect of their business, yet 37% of them struggle to tackle D&I challenges effectively.

The Macroeconomic Outlook: Business Trends, ESG 2022 survey by 451 Research reveals that 48% of manufacturers plan to escalate their investments in energy-efficient technologies, including IIoT and enterprise data-powered energy and power management platforms.

As indicated by a recent study by FICTIV, a significant proportion of surveyed individuals, approximately 50%, have amplified their reliance on outsourcing. Nearly three-fourths of the respondents held a favorable perception towards outsourcing, highlighting its efficacy, superior quality, cost-effectiveness, and expediency as the primary reasons. Firms are increasingly turning to outsourcing to overcome innovation obstacles and streamline their supply chains.

QX Global Group – Specialist Business Partner for Manufacturing Companies

As a renowned global provider of consulting, intelligent automation, and business process outsourcing, QX Global Group specializes in helping manufacturing companies unlock their full potential by optimizing processes in the areas of finance, accounting, recruitment, HR, and IT. Our solutions have enabled our clients to establish highly proficient back-office teams that are equipped to scale with their business, integrate cutting-edge technology, and manage operational costs.

Connect with our team of transformation specialists to gain insight into our service offerings and discover how we can help you enable & accelerate your business transformation journey.

Originally published Jan 31, 2023 09:01:10, updated Jan 31 2023

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