At the end of each year, you can always find numerous industry predictions for the year ahead. Here’s what some manufacturing industry experts are predicting for the sector in 2022.
According to the annual Metalworking Capital Spending Survey from Gardner Intelligence, a division of Modern Machine Shop magazine’s publisher, Gardner Business Media, the metalworking industry will expand overall. In its recent Gardner Business Index survey, the majority of U.S. manufacturing companies who responded reported business growth in 2021.
In December, the Association for Manufacturing Technology (AMT) reported that “the manufacturing technology market is flourishing in the current economic environment.” This was based on data that showed U.S. Manufacturing Technology Orders (USMTO) for the 90-day period ending October 31 totaled $571.5M, the largest three-month total since April, 1998. Overall, the market grew 53% over 2020.
Also in December, Colin Cooper, Connecticut’s chief manufacturing officer in the state Department of Economic and Community Development, reported to The Register Citizen that Connecticut’s manufacturing industry is “insanely strong.”
While this is good news, manufacturing companies are struggling to find enough skilled machinists to keep up with demand. Cooper cited the problem as “probably the biggest headwind issue in manufacturing.” He estimates that most Connecticut manufacturers have at least 10 percent of their positions open.
In addition, Production Machining magazine reported in December that supply chain disruptions and rising inflation are limiting U.S. manufacturing production.
Modern Machine Shop also reported that manufacturers are facing other significant challenges, like shortages of critical components, such as semiconductors, lack of demand for aircraft, and the uncertainty surrounding the pandemic.
The bottom line? The Institute for Supply Management (ISM) has predicted that manufacturing’s economic expansion will continue into 2022, with manufacturing revenue to increase 6.5%. However, other research indicates that rising inflation, supply chain woes, and labor and component shortages will jeopardize delivery times and threaten profit margins.
This means increasing productivity and efficiency will be more important than ever in the new year. Connecticut Manufacturers Resource Group (CTmrg.com) is dedicated to connecting manufacturers with the resources they need to make it happen. Contact Us to discuss performing a Needs Assessment to determine where we can best assist you.