Competing in the new market demands business agility

It’s unusual to see positive economic indicators paired with historic labor and supply chain challenges. But this is the trajectory for the US manufacturing industry in 2022 emerging from the pandemic. The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand. As industrial production and capacity utilization surpassed pre-pandemic levels midyear, strong increases in new orders for all major subsectors signal growth continuing in 2022.

However, optimism around revenue growth is held in check by caution from ongoing risks. Workforce shortages and supply chain instability are reducing operational efficiency and margins. Business agility can be critical for organizations seeking to operate through the turbulence from an unusually quick economic rebound—and to compete in the next growth period. As leaders look not only to defend against disruption but strengthen their offense, our 2022 manufacturing industry outlook examines five important trends to consider for manufacturing playbooks in the year ahead.