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, a subsidiary of Web Savvy Marketers, is dedicated to connecting manufacturers with the resources they need to make it happen. Contact CTmrg to discuss performing a Needs Assessment to determine where we can best assist you.

Tarrifs

Effective January 1, 2022, the U.S. will no longer impose a 25% tariff on steel or a 10% tariff on aluminum imported from the European Union (EU). The two countries negotiated an agreement to lift the Section 232 tariffs on October 31, 2021 at the G-20 Summit in Italy. In exchange for lifting the tariffs, the EU agreed to lift its 25% retaliatory tariffs on certain U.S. goods and limit its U.S. imports of aluminum and steel.

Steel imports from the EU will be limited by a Tariff Rate Quota (TRQ) that allows duty free imports of qualifying steel up to 3.3 million metric tons per year. The TRQ for aluminum is capped at 18,000 metric tons for unwrought aluminum and 366,000 metric tons for wrought aluminum. Imports that exceed the TRQ will be taxed at 25% for steel and 10% for aluminum.

Agreement stipulations, exclusions, and product categories for steel and aluminum are listed here:  US-232-EU-Statement.pdf (commerce.gov)

When the agreement was announced, Dennis Slater, president of the Association of Equipment Manufacturers said the tariffs had negatively impacted the U.S. economy. The new agreement, he said, “will help address steel shortages and soaring prices that have hurt equipment manufacturers.”

United States Secretary of Commerce Gina M. Raimondo called the agreement “great news for America’s steel and aluminum industries and workers, as well as American consumers.” The deal, she said, “will protect American jobs, avoid retaliatory tariffs on iconic American brands like Harley Davidson and the Kentucky bourbon industry, reduce inflationary pressures on products like cars, trucks, appliances and canned goods, and alleviate a major supply chain crunch by supporting increased steel and aluminum capacity in the US.”

Employment Law

The new year also brings employment changes specific to Connecticut. Starting January 1, the state’s Family and Medical Leave Act (CT FMLA) will change from providing 16 weeks of job-protected leave over a 24-month period to 12 weeks over a 12-month period. Also, the CT FMLA will now apply to companies with at least one employee, rather than only companies with 75 or more employees.

Previously, employees had to work for their companies for at least 12 months and 1,000 work hours to be eligible for the CT FMLA, but this is reduced to three months of employment with no minimum work hours in 2022.

Connecticut’s Department of Administrative Services released the details of the revised CT FMLA on December 23, 2021 in General Letter 39. The 19-page document explains employee qualifications and employer responsibilities.

Web Savvy Marketers and Connecticut Manufacturers Resource Group offer access to vetted Human Resource professionals to ensure manufacturers understand the changes and fully comply with the law.

I came across this post that Leesa Schipani (CTmrg board member) wrote in March of this year. Although that was several months ago, it still holds true. A lot has changed in the last year, yet in some ways we really haven’t moved forward as much as we’d hoped. One issue that was present prior to COVID and remains today is the workforce challenge.

A solution to this problem is retention. This post explains the importance of “Stay Interviews” and offers recommendations on how to implement this process. Read more here.

A recent article in New Jersey Business addresses the challenges we’re facing from years of offshoring. “With price increases overseas, and the pandemic wreaking havoc on the supply chain, businesses may begin weighing their lower savings from offshoring against its common challenges such as longer shipping times, the potential for a lower quality of product, and concerns about protecting intellectual property rights.”

Going overseas for parts has been a practice for decades, however, manufacturers who focus on consistently improving quality and timely delivery found issues with this practice. Aerospace represents one sector where quality and precise work that can withstand extreme conditions are essential for parts ordered. In reality, imperfections and shipping lag times have always been problems with the practice of offshoring. Cutting corners or accepting lower quality parts isn’t an option in many markets including defense and aerospace, where safety is critical.

Reshoring may seem like a trend in response to the pandemic, however, supply chain hold-ups don’t seem to be going anywhere. That said, the need for reliabiliy and consistent product quality will continue to be required long after the ports are back to normal operations. While offshoring may seem like the most cost-effective method, this temptation won’t withstand the crisis. The pandemic opened our eyes to the disastrous stalemate possible without a local supply chain back-up.

From microchips to turbines, these technologies can be manufactured in America. Nearshoring means quality jobs, easier access to products and even increased national security. It means that high demands can be met, production delays fall, and reliability is assured. Be part of the reshoring movement. The ability to provide precise parts, on-time delivery and good customer service can put your company heads above the rest.

“Ultimately, in an environment with so much uncertainty, limiting potential hiccups to one’s supply chain and maintaining as much control as possible is vital.” New Jersey Business states. Their view on reshoring efforts stands with the cost-effective, quality, and timely solution manufacturers have been needing all along.

Are you ready to gear up for the nearshoring surge? Can you meet the increasing needs of customers? Can you react to these changes? Web Savvy Marketers and can work with you to ensure your business is able to respond. Contact Us for more details.

Manufacturers are experiencing unprecedented workforce and supply chain issues in this constantly evolving business climate. Reacting to these demands puts enormous stress on organizations. Those with organizational awareness and proactivity will not only navigate these tricky waters more smoothly, but will emerge stronger and more efficient than before.

Conducting a Needs Assessment allows manufacturers to confirm – and capitalize – on existing best practices, as well as draw attention and identify resources to improve and engage those areas that are less developed. Understanding the depth of current organizational operations ensures a leader’s strategic vision can be carried out most efficiently. In light of the current world market, it is likely your staff is feeling different pressures and operations have shifted from what you may have been familiar with in the past.

Emerging manufacturers stay ahead of these unpredictable times by keeping a close pulse on root causes of business inefficiencies and consistently integrating training or other needed resources to overcome them. By conducting a Needs Assessment they are able to:

• Discover if there is a need for additional training in key areas
• Ensure training is linked to business strategy
• Address “war stories” or challenges that creep into the workplace creating inefficiencies and poor morale
• Gain participation and organizational support to emerge stronger, together

In our latest CT Manufacturers Resource Group Workforce Summit Series webinar, Beth Devine, Jennifer Gaggion and Brian Marois provided insight into what areas of the business are covered during a CTMRG Needs Assessment and why each is important. Additionally, using the CT Manufacturers Resource Group (a division of Web Savvy Marketers) allows clients to benefit from multiple subject matter experts while maintaining one point of contact.

Click on the video below to learn more.

Thank you to our other Board Members Leesa Schipani and Sean McKirdy for their participation and insight to this program.

For additional information on CTMRG Needs Assessment contact Beth Devine at beth@websavvymarketers.com or visit CTMRG.com.

October was Manufacturing Month. Most industries have their ebbs and flows, but the reliability and core strength of manufacturing is something to be celebrated across the nation. Manufacturing offers potential for skilled employees, has jobs available, and impacts our economy and environment every day.

There are many reasons to celebrate manufacturing, especially in the state of Connecticut. From large corporations to small family-owned manufacturing plants, Connecticut has thrived on the industry and grown throughout the years. The greatest challenge the industry faces now is getting more people to see the benefits of working in manufacturing. 

CT Manufacturing Resource Group, a division of Web Savvy Marketers, has created an Infographic that spells out why the next generation of workers should look into manufacturing as an option. It covers a variety of topics that are of specific interest to them from growth potential to the environment. The key is to sell the concept of manufacturing first and then your individual company. 

The following highlights some of the details of the infographic as well as other points to be made when selling the idea of a career in manufacturing: 

• Job Availability – Presently, with all the open manufacturing positions, the worry of finding a well-paying job is a thing of the past. These open positions are available across the country and are more accessible than ever. Recruiting and interviews have transitioned online for most companies and some training can be remote, making it easier to transition into a position.
• Use of Online Tools – The surge in online workshops and webinars during the pandemic has developed the growth potential within manufacturing. Accessible training on an independent schedule allows workers to take initiative and companies to rise to this demand. Companies are looking for workers who are driven and committed and can support training by covering the costs or even creating modules themselves for everyone to learn.
• Tuition Reimbursement – An employee may come in as a machine operator but find that their interests lie in Quality Control. As opportunities arise, combining education with experience helps workers realize their full potential. This benefit creates opportunities for someone with an interest in earning a degree while working, to avoid a huge amount of debt. 
• Stability – Shifting career paths is a worry of years gone by. Previously, if a worker wanted to start at a manufacturer, they would have to move their entire family and life for training, and then again to the new place of employment. The current widespread need for skilled workers across the country means that if a life situation forces a location change, there will be a job waiting in manufacturing. 
• Job Growth – As more of the manufacturing process becomes automated, there are more managerial positions available and operational positions opening every day. This comes with adaptable work environments and a willingness to learn. Showcasing this growth potential can change the conversation from an entry-level job into a dedicated career path.
• Environmental Impact – Highlighting manufacturers with greener products and processes is a draw for the next generation of employees. Much of the responsibility of the health of our planet has been put on the backs of the individual. Gen Z, who are entering the workforce now, are focused on what corporations are doing to help. Empowering them to make a difference is a great way to get the conversation started. 

If you would like to use the infographic we’ve created, please Contact Us. We are also available to help your company showcase the benefits of manufacturing and to create a communication program for the recruitment and retention of your employees.

Manufacturing Month (October) has come to an end and I thought I’d share some interesting articles. These articles focus on the importance of manufacturing in America. From solutions to supply-chain issues to national security, manufacturers are critical to every part of our country succeeding.

• Stressed supply chain underscores the need to repatriate manufacturing
• US innovation and manufacturing is vital for national and economic security
• How the pandemic brought ‘Made in America’ apparel back to fashion
• U.S. factory orders gain steam as manufacturing keeps humming
• Offshore wind is America’s new industry. Who will build it?
• Connecticut to boost funding for the state’s manufacturing workforce

And now for a call to action…

• Let’s Build a Made in America Future

Web Savvy Marketers is poised to support CT Manufacturers in their growth. Contact Us for more details and together we can strengthen CT’s manufacturing community.