The epidemic of COVID-19 has caused a massive effect on every sector of global business. The most significant impact can be seen in the manufacturing industry. The growing threat has badly hit manufacturers in not being able to meet the demands. Scarcity in resources due to the blocking of overseas trade and not enough personnel for the job are two of the major impacts of the lockdown. Every sector, ranging from automobiles and gadgets to food production, are having hard times dealing with the lockdown. This immense pressure to meet the needs, manufacturers have had to adapt to new ‘normal’ since lockdown. Let’s shed some lights on how manufacturing has changed since lockdown.
Tough for New business to thrive
New businesses are in a challenging position to enter into the manufacturing business. The lockdown has resulted in a high degree of uncertainty in every aspect.
Speculators and economists have cited that even if the market reopens, new businesses will have a tough time finding their place in this cash-constrained competition. So, it is incredibly unusual to find new manufacturing businesses thriving in the post-lockdown phase.
Challenges in finding a skilled workforce
The lockdown has caused more than 30% of the skilled workforce to migrate back to their hometowns. This significant drop in qualified human resources has taken a toll on the manufacturing sector. To fill this void, manufacturers will have to employ fresh recruits, which they also need to train for meeting the regular demands. Digitization and robotizing might be a better alternative for the large scale manufacturers. But it can wreak havoc for small and medium enterprises.
The price hike is a major concern
Movement of raw materials and machinery almost to a halt, the economics of price and scarcity have inflated the price. It’s not that it is a deliberate act of the manufacturers; however, to raise the minimum operation cost, the price hike is inevitable.
Every business requires cash, and just like every business, the manufacturing companies are concerned with cash flow and working capital. Working capital is the lifeblood for every company, and this is the only thing that stands between manufacturing companies to remain afloat. Once it crumbles, the manufacturing company will go down to the brink. Thus, stakes have never been higher than now for the manufacturing businesses.
Till date, concerns about hygiene practice is the most talked-about-topic in the manufacturing sector. Manufacturing is one of those sectors where every employee work close to accelerate production. Before lockdown, employees weren’t hesitant to work closely in a confined area. But it isn’t possible now. Health is a top priority, so manufacturers need to implement a way of maintaining physical distance for every worker. Quarantining the areas of production will be the safest option for everyone.
So, how can manufacturers adapt to this lockdown period?
Now that we’ve all figured out the problems that arise in the manufacturing business, owners who are in manufacturing need to find ways on improving their odds against this time of turmoil.
Introducing proper worker safety with hygiene and sanitization process
These workplace etiquettes might be simple, but it is the most effective defense against COVID. After all, it’s the workplace that manufacturers should give utmost importance now.
- Place sanitizer dispensers in entry and exit around the workplace will promote handwashing culture in the workplace. Make sure they are refilled every once in a while.
- Meetings are to be kept brief, and social distancing should be mandatory.
- Make sure everybody has easy access to soap and water in the workplace.
Promote respiratory hygiene in the workplace.
- Masks and paper tissues need to be available at all times for every employee.
- Make sure there are closed bins for safely disposing of the used tissues and masks.
- If any of the workers show mild symptoms, then it is advised to take his/her COVID test.
Redefining the workplace by introducing clean rooms
Manufacturing section of every company is a delicate place. This is a top priority place where you should imply every safety measure. A proper safety workplace needs to have a standardized cleanroom with 100% protection against every kind of microbes.
Pharmaceutical manufacturers are required to have a Grade A cleanroom. However, the rest of the manufacturing businesses such as packaging should at least need a Grade D cleanroom for battling against bio-chemical hazards.
Determine what category your manufacturing business falls under and redefine your workplace by introducing clean rooms. You can reach us if you have any queries on how to redefine your workplace by implementing cleanrooms.
Transforming the business model
Lockdown has alarmed every business, so your business needs to adapt too. There have been news in the media regarding how companies have adopted new business models in manufacturing. Automation can be one of the solutions for manufacturing business. However, small and medium industries will have a hard time automatizing their day to day operations due to limited budget for research and development.
Another way for small manufacturers is to opt for rationalizing their product range. Businesses that have been making diverse products will undoubtedly have a higher cost per production. So, rationalizing can help in the optimization of the resources. This will reduce the cost per output for the manufacturers.
Manufacturers of distillery such as 58 Gin, have switched their business model by making sanitizer with the same formula for making gin. Also, vacuum cleaner company, Dyson, are taking orders in bulks for ventilators from the UK government. Furthermore, LVMH, luxury goods maker, has started introducing fragrant hand sanitizers worldwide. These exemplary transformations are a few of many.
How can the government help in cash crunching
It is challenging for any business to run when there’s a shortage of working capital. The survival of companies is only possible if there’s substantial financial help from the government in this time of lockdown. Releasing of stimulus check by the government is believed to be a savior by many businesses. It can be a temporary relief for many of the companies who are in manufacturing.
Diversifying raw material supply sources
The lockdown has drastically limited the movement of raw materials. So, manufacturers now need a safety net for the uninterrupted supply of raw materials. Tie-ups such as dealing with more than one supplier are necessary for every manufacturing business. This will ensure a steady supply of raw materials when demands are high.
Even though there’s a lot to adapt in the coming days due to COVID lockdown, one thing every business owner can do promptly is redefine their workplace for the safety of their workers.
Now, as there is a dire need for the clean rooms in every manufacturing business, we, here at Traxinprod, have been indulging ourselves in making cleanrooms that can effectively and efficiently filter the pollutants such as dust, microbes and aerosol particles. An adequately made cleanroom helps in keeping the workplace clean by limiting the presence of submicron particles in the environment.