State of Manufacturing® 2021

In the next 12 months, what is the biggest challenge you face? 

“Supply chain security. It’s been difficult just making sure things are available. A lot of our stuff has to be made in America. The sourcing of some of those components and parts has become a little bit more of a challenge. There are other delays that come in that are directly tied to COVID and what COVID has done to certain parts of our supply chain. Our ability to get needed parts has been delayed a bit, but our purchases are not very time sensitive. We’re lucky because our customers and our client base are both very understanding. It hasn’t impeded our business yet.”

In the next 12 months, what is the biggest challenge you face? 

“One major thing holding us back is finding the skilled employees we’re looking for. I think everybody’s fighting wage increases and the challenge that brings, especially if you do any long-term contract work. That is our biggest challenge. Thankfully in our industry we haven’t been hampered too much other than international shipping. We’ve had a few containers that took four months to get in, but it wasn’t a material shortage. It was just the labor shortage at the port.”

Is the worker shortage here to stay? 

“I think so. I think we need to start thinking that way. We’re doing a lot to train from within. We’re getting qualified people with no skills, and we’re training them. If we train 10 people, that’s a lot of money. We’re not that big of a business. We have to nip away at it year by year. Our growth rate, as bringing on employees goes, does not match the growth rate potential. That will be a big problem in the long run.”

How much will automation play into your ability to make up productivity efficiencies?

“We’re actually right in the middle of spending about $25,000 for a very minuscule automation project. But the reason we have to do that is the shortage of people.”

The cost of healthcare has always been a top concern – is that still an issue? 

“It’s still an issue. We’ve continued to see double digit increases every year. You can’t stay ahead of that without pricing yourself out of the market. It’s impacting our margins and our strategies. That’s another reason to push for more automation. The robots don’t need much insurance.”