The Biggest Challenges Facing Manufacturers -- IndustryWeek's 2008 Salary Survey Responses
As part of the IndustryWeek 2008 Salary Survey, we asked the open-ended question: What is the biggest challenge facing the manufacturing industry today?
Following are nearly 1,000 anonymous responses from IW readers, expressing in no uncertain terms what exactly is at the top of their to-do lists. (Comments have been lightly edited, mostly for clarity).
supplier costs and offshore competition
attracting talent
finding good people, increase in cost of raw materials
skilled labor force; imports
input costs -- material, energy, and people related costs
global competition
competition from outside the U.S.
corporations
remaining cost competitive
job stability
changing culture
China / offshore manufacturing
material costs and skilled labor
increases in raw material pricing
technical engineering talent / global demands on raw materials
people
managing outsourced/extended supply chains
China
too much capacity
people
availability of skilled help
trained staff
loss of jobs
unions & finding skilled workers
3rd-party suppliers providing substandard parts
finding qualified personnel
cost of doing business
worldwide competition
healthcare
remaining cost competitive
quality and region to build
input costs that are beyond our control are out of control
quality
taxes
cost
high material costs - copper and oil
education/availability of skilled people with the right attitude
finding good management
rising fuel costs
overseas deliveries
making production
globalization and discontent of U.S. labor
China and costs
imported goodsensuring a constant stream of material to support the manufacturing.
costs and lean activities
competition
competitive challenges
finding operators who are skilled and want to work in mfg
margins and low-cost countries
marketing worldwide, not just domestic
low-cost countries
supply chain management
cost of goods sold
escalating raw material prices especially plastic resins
volatility of raw materialsoversees competition
high turnovereliminating waste
chasing quarterly resultsfinding qualified persons
foreign competition
staying competitive
competition from low-cost countries
low-cost Asian competition
outsourcing to low-cost countriescosts
financial viability in competitive market
decreasing innovative talent pool
no importance to society
managing overseas procurement logistics and deliveries
changing customer expectations
outsourcing
competition
new equipment up grade
outsourcing
economy
foreign manufacturing
doing ever more with less
cost, skilled people
variable constraints
outsourcing
qualified maintenance personnel
talent
retaining employees
offshore sourcing
recruiting talented people
labor
hiring skilled employees
talent
finding quality people
cost and qualified personal at what we are willing to pay
staying abreast of new skills, technology
outsourcing
adjustment to offshore threats
wages and benefits
supply chain coordination
lack of confidence in U.S.-made products
supplier consolidation and rising manufacturing costs
China
shortage of qualified people
retaining good employees
competing with Asian vendors
costs - energy, raw material
labor cost as percentage of selling price
overseas competition and outsourcing
manufacturing moving offshore
employees and taxes
innovative talent
outsourcing
imports
obtaining reasonable rail rates
finding good people
quality
outsourcing to low-cost countries
finding excellent employees
healthcare costs
competitive pressure from Mexico/China
shortage of technical support
labor cost and medical cost
low-cost, domestic suppliers
younger generation not interested in careers in mfg
qualified labor force
U.S. economy
labor pool
shortage of skilled labor
personnel training
skilled workforce
quality of people entering manufacturing - work ethic
outsourcing
cost
market flex
optimizing supply chain
skilled labor
rising costs of raw materials in slowing economy
offshore manufacturing
imports
keeping jobs in the U.S. staying competitive
managing costs, winning new business
lack of qualified employees / Chinese imports
competing in a global marketplace
quality
qualified and energetic employees
cost vs. price
cost
offshore manufacturing
outsourcing
people
high petroleum costs
the economy
lack of investment in technology and teaching of that to others to grow manufacturing
offshore competition
lack of capital investment in U.S.
loss of work
too many government regulations with no societal gain
heavy industry moving oversees
getting better everyday
quality and price
finding quality employees
improving quality
taxes
China, trade treaties, poor domestic quality
Chinese imports
China goods, productive U.S. labor
inventory control
cultural change to leanimports
cost
global competition
training, cultural change
labor force
offshore competition
economy
speed
attracting new talent (engineers) in this industry
global competition
low cost of Asian-based competition
employee retention
regulation
cost
the de-industrialization of America
quality employees
cost competitiveness
increasing costs
raw material escalation
capital investment
rising raw material cost
low employee labor pool skill levels
global cost structure and quality from suppliers
poor management
labor supply
remaining competitive in the face of increasing compliance reporting that is a non-value added activity
imports
outsourcing to low-cost countries
loss of technical manufacturing skill sets
material management
pricing/decreased profit margin
offshore competition - wages, healthcare
outsourcing to foreign countries
hiring quality people
profit pressure
getting new talent
skilled workforce
competition
qualified workers
motivated employees / availability of qualified technicians to keep processes and instrumentation on-line
national economy; labor force; international turmoil
offshoring competitors
skilled workforce
competitiveness (pricing) with foreign producers
new product development
knowing what to manufacture - what will customer buy
overseas competition
imports from China
raw material cost
outsourcing
updated equipment
quick turnaround
competitive costinflation
outsourcing
offshore suppliers
quality employees
outsourcing to China
low-cost regions/competition
lack of long term focus on core business
foreign competition
competition and the struggle to do more with less.
competition
healthcare
workforce skill set
people resources
cost management/competitiveness
quality, cost of manufacturing
quality of labor
labor work force
erosion of U.S. manufacturing
attitude that manufacturing cannot be done well in the West
passing on increasing costs
profit
political actions causing inconsistent playing field
quality people manufacturing quality products
capital investment
lean manufacturing
matching capacity to demand
qualified workers
a shortage of skilled and educated employees
design for manufacturing
labor costs
China
housing market
international competition and job loss
workforce
inflation
foreign competition
overseas competition
reducing lead-times
rising raw material costs
slowdown in economy
qualified personnel
talent attraction, retention and management
hiring good people
remaining competitive in U.S. manufacturing vs. overseas
training and staffing
raw material costs
executives
good employees
controlling cost and component quality
outsourcing
supply chain / productivity
cheap imports, taxes, government regulations
dependable workers
competition from foreign manufacturers
imports
low-cost imports
raw material cost
cost
offshore
qualified personnel to hire
quality and cost
labor
U.S. consumer and the economy
increase in material costs and healthcare and shrinking profit
margins due to high labor costs
cost reductions passed to smaller manufacturers, capable workforce
being profitable enough to stay in the U.S.
foreign competition
global competition
economic slowdown
overseas trading
China
rising raw material prices
dealing with foreign competition, human resources, and finding
reliable educated employees
finding motivated sales staff
offshore labor rates
quality and costs
foreign manufacturing
talented, capable people
staying up with technology
change management
labor costs, lack of continual improvement
work force
Asian market, new quality era
product moving overseas for all the wrong reasons
budget cuts
rising costs
overseas competition
outsourcing
sales
health insurance
foreign competition
qualified labor
outsourcing
global competitiveness
qualified help
dealing with unions, and competing with low-cost countries
cost
quality raw materials on time
oil prices
cost
cost pressure - China, etc.
cost
foreign competition
hiring skilled and motivated team members
China
accounting rules
skilled labor
healthcare, educated employees, foreign competition
controlling energy costs
imports
competition
competition from low-cost manufacturing
demand for our product
competitioncost control
complacency
costs
foreign labor prices
high prices causing demand to lessen
China
evolving technology and capability to absorb at front line
finding good people
change and controlling the costs of manufacturing
China
salary compensation
Staying innovative, ability to change - one of my biggest challenges is creating personal growth in the company for my staff. We are a pretty small company compared to most and constantly understanding what drives my staff and what they need to feel growth can be tough.
poor image as a profession
high cost of raw materials and labor
control costs
cost increase
government regulations and laws (e.g., FMLA)
retirement of knowledge base, skills
cost
inflation
weakening dollar
cost increase
U.S. recession
competition
keeping the peace
balancing quality and expenses
outsourcing
changes
competing with low-cost manufacturing countries
controlling process consistencyglobal competition
global competition, customers, suppliers
lack of strategic planning
outsourcing to cheap labor
competitiveness
global sourcing management
foreign competition
cost reduction
raw material and energy costs
rising labor/material costs
becoming global and doing it well
leadership, not being penny-wise and pound-foolish
cost
value/cost
qualified employees
constant change of competitive landscape
controlling costs
global competition/people
relocation of facilities overseas
cost of benefits to employees
global cost pressures and attracting young talent
employee morale
labor
costs
government regulations
recruitment and retention of skilled employees
finding and developing workers for manufacturing jobs
global competitors
worldwide sourcing
global competition
accident-free environment
government regulations/interference
changing regulations / inferior imports
production efficiencies/staying competitive/workforce development
senior managements conflicting priorities
global competition
economy
foreign competition
lower labor costs outside U.S.
costs of energy, finding good labor
executives focused on quarterly reports
foreign competition
labor and transportation
outsourcing
climate change
lean sustainment
planning for growth, executing, sustaining
cost-effective innovation
profit erosion because of mature product lines
making products cheaper and more efficiently than our global competitor
U.S. government
availability of skilled labor
efficiency and productivity
balancing quality, delivery and cost performance
downward price pressures
lack of skilled workers
overseas competition
understanding and balancing constraints
price/cost pressures
bad management
people
maintaining control of material costs
adapting to change
retaining talent
the work ethic of the younger generation
finding and retaining skilled workers with below median salaries
energy costs
smart executive management
foreign competition
globalization
material costs and availability
government incentives
raw material shortages
China
imports
market share
hiring and developing great talent
overseas competition
domestic cost to manufacture versus foreign sources
efficiency
maintaining qualified suppliers
China's horrible quality
hiring quality personnel
Eastern labor, and the stigma of "low-cost" outsourcing
healthcare costs
employee development
VP and CEO salaries and perks
management cutting budgets to increase bottom line
remaining competitive in the global marketplace
cost containment
costs
managing change
qualified employees
keeping jobs in America
finding qualified workers
work
3-month management cycles
overseas sourcing
loss of manufacturing customer base to 3rd world countries.
employees lack of international business
being competitive with foreign companies
poor market conditions
weak dollar impacts profitability / need to build export market for our products
Asia competition
cultural change to Lean manufacturing
international competition
competitiveness
outsourcing
reducing costs
foreign competition
global competition
shrinking sales due to foreign competition.
cost increases
competing with other countries
dynamically changing to meet the demands of the industry
overseas competition
days of supply
globalization
rising energy costs relative to product costs
offshore competition
declining sales vs. profit targets
global sourcing
international competition
finding skilled people
global marketplace demands
getting the entire operation to understand the importance of customer centricity
global competition
labor skills shortage
shrinking employee pool
workforce quality
reducing cost
maintaining a competitive cost structure
price of our products - can be made cheaper overseas
aging workforce
cost of labor
cost reductionsinternational competiveness
U.S. manufacturing staying in the U.S.
government regulations
delivering cost efficient quality products to compete with foreign markets
hiring laborers
quality talent for manufacturing/production positions
commodity pricing and low-cost country competition
perception that manufacturing is dying
export of manufacturing to China, India, etc.
imports from China, South Africa
lack of skilled employees
foreign competition
managing the supply chain
retaining qualified people
process and organizational change
changing
fighting the unequal playing field with currency valuation in the global marketplace.
getting good talented people
the economy
cost pressures
retaining good employees
many competitors with shrinking volume
material volatility
moving offshore I feel is unethical to U.S.
cost of materials
pricing pressure from overseas sources
skilled trades manpower
profitable growth
human resources
global competition
commodity costs
lack of workers
foreign trade
global competition
cost pressures from materials, people, and overhead expenses
competent employees
labor
offshore competitors
worldwide competition
outsourcing
low-cost country manufacturing
staffing
price of fuel, utilities
raw material price increases
rising costs
recession
offshoring
China
scarcity of resources
controlling costs
employee buy in
traditional thinking and refusal to change to TPS
skilled employees
challenged to global sourcing
sufficient people resources
young workers with machine/equipment aptitude
skilled labor
Identifying and eliminating waste from all processes
overseas competition
price pressure
global competition
remaining competitive in the face of pressure to use offshore sourcing.
material cost
adapting to rapid change
declining sales
ingredient costs
competitive pricing
unfair trade
China
energy costs and the normalization of the global economy
cost control
poor management
hard competition, labor problem, and difficult and expensive raw industry materials
plant re-locations to the Far East
the graying of the workforce and getting young people into manufacturing to take the retiring persons' positions
rising raw material costs
workforce engagement
China
global economy
finding young engineers that want to work in a manufacturing environment
outsourcing to low-cost countries
undereducated work force
cost competitiveness
regulations, environmental issues
excess domestic capacity due to overseas competition.
being competitive in price and quality with imports
raw materials cost
labor unions
recruiting and retaining the right people
workforce
government regulations, labor, stiff competition, rising cost, slowing economy, where do I begin
imports from China and global competition for materials.
competing in global environment
aging workforce with little interest by the younger generation in manufacturing
staying competitive in a global environment
finding engineers
staffing with competent people
cost management
retaining and recruiting skilled operators
finding good people
outsourcing overseas
economy
delivery issues; backlog
emerging markets
cost, shipping
energy prices
staffing / foreign competition
labor shortage
product prices vs. input costs
overseas competition
commoditization of products
imports
cost to purchase goods made in the U.S.
profit margins
low-cost country competitive products
maintaining a discipline for quality with profit, not just production
outsourcing
having the U.S. be competitive worldwide
finding new leadership
continual improvement
Asian product and their low cost
productivity / creativity
globalization
finding qualified employees
control cost
inventory management
overseas competition
low-cost offshore competition, especially China
having a long-term vision when management feels the need to go for short-term profits
foreign competition
remembering to just get better every day
loss of institutional knowledge
shortage of skilled people
low-cost competition
keeping up with technology while keeping costs low
offshoring
low-cost imports
growth into new markets and new product development
China
receiving purchased goods
foreign competition, people want it faster (between lead times and new products)
remaining competitive globally
maintaining competitiveness in a global market
skilled labor
continually improving
offshore competition
cost
recruitment
technical Skills
lack of quality replacements in the workforce
remaining competitive
foreign competition
personnel retention
global competition
skilled workers
competition with offshore manufacturing
materials costs
low-cost regions
foreign competition
staff
jobs are being lost overseas
skilled employees
manufacturing cost
healthcare cost
people
world competition
transforming from make-to-sell into sense-and-respond companies / lack of mobility in the market
employees
government regulations and healthcare cost
good employees
cost savings
skilled employees
growth
food safety
increasing costs
attracting good employees
manufacturing being sent to China/Hong Kong
quality people
offshore competition and raw materials
safety-first behavior
finding qualified employees
work ethics of employees
talent, knowledge of workers
qualified personnel and gas prices
cost of goods
raw material prices
international competition
raw material cost increase / inflationary pressures
the need for engineering professionals
becoming more flexible, rising raw material costs / fuel
cycle time
change in product design
change
no image in the market
overseas competition - low-cost countries
foreign competition: cheap prices
consolidation
labor force
plant closings / Chinaworkforce
foreign competition
government regulations
finding skilled people
labor cost
shortage of labor
global competition
cost and availability of product and on-time delivery
China
CEOs in corporate America
offshore manufacturing
price competition from low labor countries
raw material costs
globalization
global competition
remaining competitive in the market
complacency
foreign countries manufacturing products cheaper than America can do it
offshore competition
rising costs
labor cost
electric costs
pricing
poor management
remaining competitive
offshore competitive pricing
protecting our environment
keeping manufacturing in the U.S.
competition from abroad
business functions are still disconnected from each other; conflicting functional objectives are not linked to higher level business purposes
rising healthcare costs
lack of qualified and skilled workers
skilled workers
the outsourcing of manufacturing jobs overseas
economy/healthcare
customer base mfg less domestically
E. Coli
metal prices and the market
frivolous lawsuits
offshore sourcing
rising healthcare and petroleum costs
keeping industry in U.S.
making it cheaper
globalization
low-cost geographies / must embrace lean
quality workers
well-qualified employees with "employability" skills
raw material costs
costs
China
controlling costs
employee retention
lack of manufacturing skill
keeping jobs in the U.S.
global competition
costs
hiring qualified employees
cost of energy and derivatives
being in Michigan
imports
foreign competition
keeping costs down
costs for labor and materials
energy costs
MBA's
cost pressure from both raw materials to the industry in general as well as competitive costing from
overseas labor
cost effective labor
foreign manufacturing
the slump in housing construction
finding skilled direct labor
long-term strategies
inflationary prices paid for materials
rising commodity cost
workforce training
parts proliferation
finding qualified applicants with so many of the manufacturing jobs going outside the U.S. - the pool of skilled candidates is shrinking
innovation
quality/price
inflation
unfair competition from abroad
global competition
keeping work in the U.S.
energy/raw material costs
safety
global competition
overseas competition
taxes
skilled employees
unstable oil prices
quality
trend sourcing
cost of materials made from petroleum
overseas competition
knowledge of industry (years of experience) vs. degreed without experience
imports
government intrusion
China
outsourcing
labor costs
low-cost manufacturing
finding skilled workforce
work ethic
products from China
fluctuating cost of raw materials
educating people to see manufacturing as a viable and growing career path
corporate management
our unwillingness to drive costs out of the operations
global competitiveness
competition
skilled employees
competition
material costs in a global market
qualified people
real-world education
work overload
competition from other countries, mainly China
replacement employees
inexperienced people in the workforceglobal competition and supply chain
globalization and rising cost
development of subordinates
skilled labor
China
housing market
people
foreign competition
material costs
leadership development
petroleum costs
low quality finished components from China
offshoring of U.S. manufacturing
technology advancements
metal pricing
Asia
keeping jobs in the states
global competitive pressures
inventory and transportation
government
current economy
low-cost countries
labor costs
accountability in management and need for lean manufacturing
loss of manufacturing due to unfriendly government/business climate
global competition
loss of jobs to offshore locations
inflation
management's attitude toward personnel and development
people
lost of customers = lost of manufacturing jobs
finding qualified people
personnel
labor market
offshore manufacturing
imports
finding capable employees
turnover, competition
foreign competition
supply change management
global competition
cost control and innovation
cost of medical benefits, workers comp and all other insurances
less than adequate government policy support, especially in regards to energy/feedstock supplies
industries moving out of U.S.
competent labor force
human resource Issues
managing the people
closures
lack of government support for manufacturing; legislation like NAFTA, CAFTA, GATT, and the new one pushing our manufacturing further south where slave labor is available
cost of materials
material
maintaining costs to keep job on shore
the technology changes that require a quick response with a product and a low selling price
getting enough qualified candidates
foreign competition
government regulations /politics
the balance of import vs. the market as brand is the only issue vs. the product knock off
no long-term focus -no reinvestment
availability of qualified drug-free workforce
aging workforce
knowledgeable management
reliable suppliers of materials and competent management personnel
stress and frustration of dealing with poor leaders who TRY to lead us
staying ahead of foreign competition
metal prices
maintaining competitiveness
efficiency
being competitive in the markets they serve
keeping manufacturing in the U.S.
quality workforce (recruit and retain) while being cost-competitive
imports
unions; escalating healthcare costs; consultants
maintaining a workforce
competition from low-cost geographies
downtime
efficient integration of the entire supply chain
outsourcing to low-cost manufacturing regions
outsourcing
keeping it in the U.S.
qualified candidates for positions both salaried and hourly
outsourcing
China / loss of U.S.-based manufacturing
R&D
attracting and retaining good talent
offshore competition
Internet
quality control issues
finding and retaining high quality talent
skilled applicants
qualified workers
insurance - health, workers comp
outsourcing
cost pressures
recruitment, training and adopting lean enterprise wide
global outsourcing
price increases
rising cost of doing business
outsourcing offshore
reducing costs while maintaining quality
excess capacity
keeping healthcare costs down
China
commodity pricing and Asian labor advantage
getting and keeping qualified staff
medical cost
foreign competition
rising cost of raw materials
skilled workers
outsourcing to other countries
culture change
cost containment
competitive pressures
finding people
low labor outsourcing
foreign competition
labor costs
keeping costs in check to remain competitive
outsourcing and logistics
adapting to any and all changes
globalization of supply chain
the pace of change
staying competitive with foreign competition
finding capable suppliers
education level of employees
low-cost countries as competitors
qualified help
undetermined business
modernizing without offshoring jobs
sourcing in global markets
culture change
customer spec changes
keeping costs under control
competition from offshore / lower pricing
global competitiveness
currency effects
labor skills and cost
outsourcing
quality
safety
orders
attracting good graduates into manufacturing
increase cost of metals-housing industry
competition from low-cost countries
keeping a manufacturing base in the U.S.
finding personnel who actually WANT to work in manufacturing
low price importsforeign competition
recognition of the importance of manufacturing operations
recruitment
