The COVID-19 pandemic has upended many of the standard practices of the manufacturing industry. These changes have caused many to try and find ways to keep things going despite the difficult times. Now, as places begin to try and re-open and restart their production, manufacturers are trying to plan out the changes they’ll need to make based upon the lessons they’ve learned.
During the pandemic, nearly 78% of manufacturing leaders have noted that the pandemic has caused a serious financial impact on their business. Aside from supply issues, many were unable to operate due to stay-at-home orders. Even those who have been deemed “essential” and were able to stay open had to grapple with trying to keep their workers safe and healthy.
That’s why one key area manufacturers are focusing on is their cash runways. Concerns over a second wave have especially made it important for these businesses to ensure they have the funds to stay afloat should there be another shutdown. Better financial planning and assessments will be crucial in seeing where costs can be cut and ensuring there will be enough funds for an extended period of time until production can resume.
Aside from financial matters, many manufacturers are also better preparing for supply chain disruptions. Much of the initial impact of the COVID pandemic was felt via supply-side disruptions. It could potentially take years for these supply chains to stabilize back to the levels they were at pre-pandemic. Flexibility, especially in finding suppliers, will be important for keeping a steady influx of needed materials.
Of course, the health and safety of workers have certainly taken priority. A lot of changes have already been taken in order to allow workers to do their job while minimizing the risk of them getting sick. Safe distancing, face masks and barriers, temperature checks, and constant cleaning is just some of the steps being taken to ensure the risk presented to workers remains low.