🚀 Shaping the Future - Issue 62
New research conducted and released today by Caddi found that 49% of U.S. manufacturers expect a recession to hit in 2025, with 84% predicting it will happen within the next two years.
🚨 Advancing Digital Transformation
The Manufacturing X.0 agenda has practical, tried, and tested, examples of digital transformation MX.0 Midwest showcases regional and national manufacturing excellence in building for manufacturers of different sizes, at different points in their implementation journey.
📣 Unleash Your Potential in the Digital Renaissance
Are you ready to harness the power of Generative AI and transform the way you work and think? Join industry veteran Jason Bean for a groundbreaking workshop that bridges millennia of human knowledge with cutting-edge AI technology.
This virtual workshop will take place on October 2nd from 3:00 pm to 5:00 pm (Eastern). Don't miss out on this fantastic opportunity to learn from one of the best in an intimate setting. The workshop is limited to 15 participants.
📚What we’ve read this week
The American Manufacturing Pressure and Productivity Index [CADDI]
New research conducted and released today by Caddi found that 49% of U.S. manufacturers expect a recession to hit in 2025, with 84% predicting it will happen within the next two years. Other key findings from the report include:
Talent challenges remain top pressure drivers, including a lack of access to skilled labor (56%) and equipping current employees to step into strategic roles (50%).
Speed to market, which 23% of manufacturers say is a 2025 priority, is at risk.
77% of procurement professionals say that every few projects, they need to find a new part, product, or supplier because the one they found doesn't meet engineering's specifications.
68% believe at least half of their institutional knowledge will be lost forever in the next decade when senior executives retire.
27% of manufacturers fear they aren't transforming fast enough to survive (27%).
45% of senior management leaders cite digitally transforming their operations as a top business pressure.
51% said navigating political demands to bring more production onshore is a top three pressure point.
Solar Panel Manufacturing Shines in the US, But Installations Are Falling [Verge]
US solar panel manufacturing capacity has quadrupled due to the Inflation Reduction Act, reaching 31.3 GW by Q2 2024, but despite this growth, solar installations are projected to decrease by 4% in 2024. Factors contributing to this decline include a 19% drop in residential installations due to policy changes in California, financial challenges, and the impact of tariffs on imported solar cells, alongside issues in utility-scale projects like labor shortages and equipment delays.
Why 96% of Boeing’s Machinists Voted to Go on Strike [WSJ]
The strike, which has halted production of the 737 and other jets, reveals deep-seated frustration from both long-time employees and recent hires. Many veteran workers expressed anger over concessions made by their union in the last 16 years, which have eroded retirement and health benefits. Younger workers are facing the rising cost of living and are dissatisfied with Boeing's stagnant starting wages. Furthermore, workers are still angry over Boeing’s decision in 2008 to move production of its 787 Dreamliner to a nonunion factory in South Carolina, which they see as punishment for a previous strike. Hau Vo, a 43-year-old employee, explained that while Boeing offers better benefits than his last construction job, his family's budget is tightening. "We’re not building toy cars for Walmart. We’re building a plane that puts people in the air,” Vo emphasized, reflecting the sentiment of many workers. Despite the tentative contract offering a 25% wage increase over four years, 94% of the union’s 33,000 members rejected the deal, and 96% voted to strike. Workers overwhelmingly believe the proposed deal falls short, particularly when considering inflation and other cost-of-living pressures. Daniel Dias, a Boeing employee of nearly six years, said the proposed increase would only bring his salary from $48,000 to $51,000 in the first year, a small gain in today's economy. "The cost of living has gone up exponentially and… we only stand to gain $2 to $3 an hour," he explained.
Automation and the talent challenge in American manufacturing [Mckinsey & Company]
The manufacturing sector is no stranger to automation, but historically, few manufacturers have used the approach to target labor shortages. Instead, companies tend to look at automation to improve quality or to address specific health and safety issues. Automation can also serve as a gateway to more informed decision making, through big data analytics and real-time performance monitoring and control. Robots generate real-time data that could be added to the existing data stack and augment the digitization journey. Manufacturers could use real-time information to identify and mitigate problems before they arise, increase traceability, and gain competitive advantage by using the data to further optimize their manufacturing process.
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💬 About Shaping the Future
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