Post-Pandemic Manufacturing: How Factories Are Adapting to the New Normal

The year 2020 will live long in the memory of everyone on Earth for all the wrong reasons, the trauma it caused, the self-discovery we went through and the adaptation in the months since the start of the global lockdowns. Although for many, this post-pandemic period has been a welcome return to our old ways, for businesses and industries, it is and will continue to be a period of change and adaptation. Here at Milo Tools, we examine specifically how post-pandemic manufacturing and factories themselves are adapting to the new normal.

Like all industries, the manufacturing industry has had to deal with many obstacles, from coronavirus health and safety guidelines to national lockdowns. This has led to numerous changes to both workforces and processes. As we move into a post-pandemic world, the adaptation to post-pandemic manufacturing looks set to continue. Let’s take a look at the main ways the manufacturing industry is having to adapt.

Responding to Demand

As with a lot of the main industries that have been on pause for the last 18 months, we can expect to see a rebound in the demand for manufacturing. Trying to meet this pent-up demand is a key point when it comes to not just adapting but thriving in this post-pandemic world.

As we approach the second anniversary of the global pandemic, consumer confidence appears to be growing along with optimism that demand will increase to pre-pandemic levels. Manufacturers will need to ensure that they can keep up with this surge in demand by being smart about their supply chain management and internal processes.

Supply Chain Shift

The world of logistics has been put under enormous pressure during the coronavirus pandemic. Many manufacturers rely on a few very inflexible supply chains that just aren’t going to be the future of post-pandemic manufacturing. Companies and businesses that invest in diversifying their supply chains and increasing flexibility are likely to have the upper hand than those that don’t focus their attention on adapting their own supply chain.

Pricing Pressures

As we approach 2022, it is clear that the rising cost pressures will significantly impact the post-pandemic manufacturing industry. The price of many commodities like metals, particularly copper and iron ore, is reaching record prices, putting large amounts of pressure on manufacturers.

Due to the disruption of the last 18 months, manufacturers are looking to recoup costs. In some cases, manufacturers can increase the price consumers are paying to cover the rise in cost. Still, others have to cover it themselves, thus cutting their profit margins dramatically.

Automated Manufacturing

Over time, Europe and Western countries have become over-reliant on off-shore supplies and production, which became hugely apparent during the Covid pandemic. This means that we are likely to see a government push to encourage domestic manufacturing in a plan to future proof ourselves against any future crises and help get the manufacturing industry back on its feet.

Automation will be a significant part of this domestic manufacturing push to increase productivity across several manufacturing processes. Automation will also create new jobs for skilled workers with expertise in specialised equipment like the sort you will find here at Milo Tools.

Digitalisation

Following previous global events like the great recession, studies have shown that the most resilient companies invested in software technologies and had a competitive advantage due to digitalisation.

Advancements in AI and Internet of Things (IoT) technology has meant that manufacturing operations and supply chains are more efficient, predictable and flexible. Companies that have already adopted these technologies will have a massive advantage over their competitors at the beginning of their digitalisation process.

Remote Work Transition

Remote work has become one of the buzzwords of the last couple of years. Countless businesses and firms have been forced to move their workforce online and adapt their processes to remote working. Although some industries are returning to their pre-pandemic working methods, many see remote or agile working as the future. Post-pandemic manufacturing is no different.

Although manufacturing will continue to require people on-site, such as maintenance staff and operators, there has been a virtual shift facilitated by the social distancing measure that has been put in place. This means that we will continue to see teams that are spread out over more expansive geographical locations and more adoption of communication and collaboration tools.

This shift to remote working could also change the way manufacturers contract talent. Beforehand talent ID was limited to a specific geographical range, whereas many remote roles can be filled by a much larger pool of talented potential employees. This brings greater competitiveness for companies that are in solid positions post-pandemic.

Health and Safety

Health and safety has always been a key consideration within the manufacturing industry. However, as of 2020, potentially hazardous machinery isn’t the only concern. Covid-19 has meant a new focus on social distancing, personal protective equipment (PPE), health testing and sanitisation, which has presented a range of new challenges.

Even though restrictions and social distancing have ended, many of these health and safety practices will likely continue to ensure that manufacturers are managing the safest environment possible for their employees.

Customer Engagement

Throughout the pandemic, most businesses and firms have made an increased effort to engage with their customers, show empathy by sharing the pain caused by Covid-19 and not be forgotten during the downtime. This period of business introspection has also meant that many manufacturing companies have pushed to enhance customer experience through customer analytics, customer relationship management and digital marketing.

Adaptation is the key to survival and success, and over the last 18 months, we have seen that first hand. Like many aspects of life, the manufacturing industry will not be the same again. The post-pandemic manufacturing industry is still undergoing a period of adaptation where expertise and experience play a key role in success. Here at Milo Tools, we supply high-performance precision-cutting tools and specialised equipment and offer our expertise and assistance in the form of a dedicated account manager and technical sales assistance.