As they face a rapidly shifting global trade landscape, manufacturers worldwide have “significant untapped opportunities” to improve efficiency, reduce costs, and strengthen long-term business continuity, according to a survey from consulting firm Aprio.
That research comes as businesses in every sector are tracking a volatile geopolitical climate and the threat of a looming trade war, Aprio said in its second annual “U.S. National Manufacturing & Distribution Study,” which gathered responses from executives at companies with headquarters in 34 states, representing more than 20 industries
In fact, nearly a quarter of companies import more than half of their components, and almost a third spend $1 million or more on custom duties and tariffs, making them vulnerable to trade policy shifts, geopolitical risks, and logistics bottlenecks.
In the face of those conditions, many industrial companies have substantial opportunities for improvement across critical functions, Aprio said.
First, most companies continue to experience supply chain problems like product delays and product defects. Yet more than half of companies don’t assess many supplier criteria. The top criteria assessed are quality/reliability (48% of companies), total cost (46%), and productivity (42%).
Second, nearly half (48%) of companies experienced at least one breach of IT networks and data in the past year, and 17% report five or more breaches. Yet, even the most-used approaches are deployed at only half of companies, like cybersecurity training (52% of companies), cybersecurity policy (50%), and cybersecurity audits (46%).
Third, many companies continue to face annual labor turnover rates of more than 10% for frontline employees (42% of companies), managers and supervisors (30%), and senior executives/leadership (28%).
And fourth, nearly two-thirds (66%) of companies empower half or fewer of frontline employees to solve problems, and 67% of companies report that half or fewer of their frontline employees are multi-skilled.
