Costs Rise for US Manufacturers as Higher Salaries Needed to Attract In-Demand Talent
Cost pressures are weighing heavily on all manufacturers in the US, with all having to offer higher salaries to attract in-demand talent. This is according to new research by Visual Components, a developer of 3D simulation software, which has shed light on the range of factors that is adding to the financial pressure for the sector in 2023. In the UK, 94% of manufacturers surveyed have had to offer higher salaries.
Alongside the need to offer higher salaries due to skills shortages, the typical cost associated with downtime due to unreliable legacy equipment is between $12,701 - $31,750 for a third of respondents (33%). Ineffective utilization of robots has also led to almost one-in-five (17%) stating that between $31,751 - $63,500 has been wasted due to a mistake when deploying them. Almost one-in-ten (7%) report figures of over $127,001.
With over a quarter (28%) of manufacturers spending over $63,501 robot deployments over the last 12 months, failing to use robots to their full capability is also a significant financial risk. Almost one-in-three respondents (28%) say that they have invested over $63,501 in robot deployments in the last 12 months.
In an effort to reduce costs, manufacturers have focused on reducing power usage (36%) in a time of spiralling energy prices, with this an even bigger focus among French companies (40%). Despite a sustainable focus, just over two-thirds (68%) are confident that their business will play a key role in helping the global drive for net zero carbon emissions.
“Economic factors such as skills shortages have driven up costs for US manufacturers, but organizations are also losing money from ineffective technology deployments. To keep expenditure to a minimum, businesses can deploy simulation software to allow cost-effective and efficient decisions to be made in real-time, while enabling reliable and consistent automated processes that don’t incur any costly mistakes. Organizations can also avoid missing out on potential revenue by programming robots quicker to send items into production and down the supply chain,” said Mikko Urho, CEO, Visual Components.
The preceding press release was provided by a company unaffiliated with Packaging Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Packaging Impressions.
