Manufacturing Update Q2 2021

Manufacturers turn to automation and Industry 4.0 strategies to conquer workforce challenges

Drivers

  • The Illinois Manufacturing Excellence Center (IMEC) began conducting a survey in May 2020, asking manufacturers about their top needs during the pandemic. After collecting nearly 2,500 responses from Illinois manufacturers, the highest priority needs of manufacturing leaders include:
    • Growth - recapturing lost sales and creating new growth opportunities.
    • Workforce - find, train and retain skilled employees.
    • Productivity - maximize capacity, increase outputs and focus on efficiencies in processes.
    • Leadership – lead the organization toward high performance.
    • Safety – improve safety and sanitation in operations.
  • The manufacturing industry is seeing strong demand for products and services; specifically, those that are tied to infrastructure.
  • Automation will be an important strategy to remedy some of the workforce challenges being experienced by manufacturing companies. Industry 4.0 refers to a new phase in the Industrial Revolution that focuses heavily on interconnectivity, automation, machine learning and real-time data. Workgroups around Illinois and Iowa are collaborating and planning local outreach efforts. 

Drawbacks

  • Businesses continue to experience supply chain challenges, shipping/receiving delays, delays in the delivery of materials, and increased pricing of raw materials.
  • Workforce continues to be a top priority for businesses. Some companies have experienced increased demand for their products and services, but their production capacity is limited with fewer employees. 
  • Recommendations and mandates for vaccination and masking are impacting businesses. Policies and enforcement of such are changing by the day. With a heightened risk of potential transmission among unvaccinated and unmasked employees; businesses should be prepared to manage potential quarantining of exposed individuals. Continued flexibility will be necessary for workers with children.

 

  Average Hourly Wages
Occupation USA Quad Cities MSA
General and Operations Managers $60.45 $47.29
Purchasing Managers $63.78 $55.68
First-Line Supervisors of Non-Retail Sales Workers $43.33 $35.84
Welders, Cutters, Solderers, and Brazers $22.45 $20.37
Tami Petsche
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Tami Petsche
Vice President, Business & Economic Growth
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