Challenges Facing the Manufacturing Industry
Amid economic pressures, high prices in manufacturing continue to rise–especially in the electronics sector. With more than two-thirds of the industry reporting material prices still on the rise, when will we see a decrease? According to experts, it could take a while.
What the Experts Say
With fuel costs impacting freight rates, prices have yet to come down in the electronics sector. According to Andy Reese, Director of Business Development at East West Manufacturing, “Diversity of the supply chain is key. Being tied to one supplier, component, freight source, etc., makes finding alternatives challenging.” However, some experts believe the demand for electronics will help offset these high costs and hopefully lower prices after the first six months of the year.
State of the Union
In the recent State of the Union address, President Biden reported that the United States can once again lead in global manufacturing. Evidence is in companies like Intel building a semiconductor factory campus set to employ 10,000 workers. The Intel campus is just one example of the American push to propel supply chains and secure them from failing the way they did during the pandemic. “We can never let that happen again,” President Biden said. “We’re going to make sure the supply chain for America begins in America.”
Solutions to the Supply Chain Issues
In order to combat high labor costs, warehouse automation is essential in the industry. One way to lighten labor costs in your manufacturing facility is to implement the latest technology. Amazon showcased a few technologies last year that may help your business move forward with less labor costs. For instance, the first use of AI in autonomous mobility. According to Supply Chain Dive, “Amazon is testing free-roaming robots that handle the transport of oversized and unwieldy items within a fulfillment center. These items are normally transported by employees via pulleys and forklifts. The company aims to have the robots, which use artificial intelligence and computer vision, cover this task instead.”
Upgrading your physical infrastructure just might be the key to pushing your supply chain forward. When automating your warehouse, trust PCX. We ensure only the highest quality of products and services are delivered to you.