As we enter 2021, I am optimistic that the manufacturing sector is moving in the right direction. We are aware that the COVID pandemic of 2020 caused a seismic disruption to the world’s supply chains that sent a tidal wave through the industrial and retail sectors. Depending on the survey used, 76% to 84% of executives said they needed to rethink their manufacturing footprint and supply chain strategy. They signaled confidence in their organization’s ability to compress lead-times by reshoring and insourcing operation-critical parts to regain control of their supply base.
The December ISM Purchasing Managers Index increase brings hope that the NA Industrial sector continues expansion.
I am pausing here to draw attention to the fact that private equity has $1.5 trillion, yes, TRILLION, of dry powder on the sidelines, ready to invest. I’m hopeful that the smart money will heavily invest in the North American industrial sector since executives have signaled a desire to compress lead-times by nearshoring, reshoring, and insourcing.
I have great confidence that we will experience three to five years of strong growth in NA industrials. There will be a similar parallel in demand for operations, supply chain, and skilled professionals to support the resurgence.
Here are three of the many areas to be addressed to get ahead of the growth cycle:
Invest in supply chain professionals.
Address broken processes, inaccurate inventory, and data integrity.
Process sustainability
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How are you preparing for the next wave of expansion? How are you demonstrating and communicating your hope, confidence, and optimism for the next 3-5 years to the organization?
If you have any questions or comments on how this article relates to your operations and supply chain business strategy, please contact me by e-mail or at +1 (336) 260-9441.
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