Only 3 months ago … Dow Jones Industrial Average (DJIA) was over 29,000 and the 2020-Q1 National Manufacturing Outlook Index had 77% of manufacturers feeling positive for the full-year outlook.
Today … DJIA has dropped as low as 20,704 (March 18) and has since “recovered” to over 26,000. 2020-Q2 National Manufacturing Outlook Index is not yet published but is expected to fall.
COVID-19 Expected Impact
In April 2020, in a special COVID-19 Expected Impact survey completed by NAM.org, the following results were highlighted by the responding manufacturing members –
78.3% Anticipate a Financial Impact
53.1% Anticipate a Change in Operations
35.5% Facing Supply Chain Disruptions
There is no question that C-19 has changed the very fabric of life across the world with many forecasting that, while the health impact might be slowing down, the economic impact of this is yet to be fully realized.
By May 19, 2020, all states had started on their unique roads back to recovery. Every state will have social distancing and employee and customer safety as cornerstones of the recovery.
Manufacturing in North America
While many front office or knowledge-based jobs can be accommodated for social distancing, much of the manufacturing in North America is not able to quickly or easily adjust to reflect this new reality without greatly sacrificing employee headcount or production throughput. It is estimated that 40%-50% of the manufacturing workforce will be unavailable to perform their functions on-site based on estimates around social distancing and employee safeguards.
Production automation and remote access to digital metrics will both play a large role in enabling North American manufacturing to react and respond to the required changes brought in the post C-19 world.
Tools that enable production lines to operate at maximum efficiency without requiring manual intervention will help to offset the production challenges brought on by reacting appropriately to the C-19 challenges.
Usage of an Ecogate solution allows the manufacturer to automate the electricity savings associated with smart controls used in the manufacturing process. Oftentimes the manufacturer will achieve savings of over 60% in direct electricity usage for the same volume and throughput.
Manufacturing companies in the post C-19 world will also value and work towards having more real-time information about production lines and workflows. Having this real-time information will allow companies to react to changes in a quicker or more decisive manner.
All Ecogate solutions come with robust and detailed analytic reports available in real-time. Companies with access to this level of production relevant information will make better and faster decisions than those without access.
Author: Richard Melrose