2021 Marcum National Manufacturing Survey

11

www.marcumllp.com

100%

Q23 Will the pandemic permanently change the way you manage:

90%

80%

70%

60%

Workforce safety measures 45.71% (16)

Workplace environment 40.00% (14)

50%

Do more with less 40.00% (14)

Adoption and deployment of technology 25.71% (9)

40%

Workforce headcount 17.14% (6)

30%

Supply chain 20.00% (7)

Logistics 17.14% (6)

20%

10%

Other 2.86% (1)

0%

PANDEMIC’S IMPACT Effects of the Pandemic Remain

LOOKING AHEAD Plenty of Uncertainty Ahead

Staffing challenges are not the only lingering side effect of the pandemic. After more than a year of unusual shortages and price spikes hitting everything from bicycles to lumber, it makes sense that manufacturers are wary about supply chain issues. Ongoing disruptions to the supply chain have hit manufacturers of all stripes. The most common supply chain challenge was controlling costs, with 40% of respondents expressing concern. At least 25% noted difficulty in sourcing raw materials. Given that the virus remains a threat to physical and economic health, we were not surprised to find most respondents believe the pandemic will result in permanent changes to how they do business. Given the general optimism in this cohort, we think those changes could mean efficiency gains or other beneficial approaches. The pandemic has accelerated change, and the best companies are adapting quickly.

Across the board, respondents are aware of the many physical and economic threats posed by COVID-19 and variants like Delta. Having gone from an optimistic outlook in the early summer to alarming case numbers and hospitalizations by the late summer, we still don’t really know when — or if — the coronavirus will stop affecting our daily lives. That uncertainty held true for manufacturers as well, with a majority saying the pandemic permanently changed how they do business. Enhanced workforce safety is a major focus, with 46% saying those measures will stay in place permanently and 40% saying the workplace environment is changed forever. Many manufacturers have also become more efficient during the pandemic, with 40% saying they are now able to do more with less moving forward, 26% adopting and deploying new technology, and 17% lowering long-term headcount. And after more than a year of supply chain disruptions and logistical challenges, 20% of respondents expect permanent supply chain changes and 17% anticipate permanent logistical changes.