COVID-19 has created a situation where many businesses and companies find themselves with no choice but to adapt. In this post, we will be going over how the manufacturing industry is continually adapting in response to COVID-19.
Furloughs and Layoffs
According to a survey conducted by The Conference Board, 45% of those in the manufacturing industry expected to implement layoffs and furloughs between May and July, with 29% already having done so in April. Furloughs and layoffs reflect a large drop in revenue, and many manufacturers are experiencing a need to reduce labor costs because of the sharp decrease in demand. Manufacturers will likely continue to issue layoffs to cope with the effects of COVID-19 in the coming months.
A Shift to Remote Work
While only 1 in 14 employees for a manufacturer worked from home before the virus, that number may become 1 in 3. The long-term consequences of the virus may result in more of a shift to remote work, barring only those working at physical plants. The long-term effects of this shift may demand more flexibility for production workers, a need to increase digital capabilities, and accelerated automation of plants.
Stabilizing Growth Through Products
In sectors where the demand is beginning to wane, manufacturers will find themselves focusing on the products which have the highest chance of achieving stability and growth, while slowing or shutting down production volumes of products that are in much less demand. It’s likely that many manufacturers will review and adjust their supply chain strategies in order to lessen the shock of disruptions
Giving You the Tools to Adapt
A lot has changed thanks to COVID-19, and manufacturing is no exception. What remains most important for both you as a manufacturer and for us at Adonis is to promote sustainable growth and give you the tools necessary to adapt to the changes in manufacturing brought about by the virus.