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An obvious downside that we will carry over from last year are the widespread supply chain disruptions. In 2021, we saw systemic delays at global ports, but also one-off situations, such as the blockage of the Suez Canal by a container ship. This sustained supply chain instability inevitably puts increased pressure on already fragile systems, such as the global computer chip supply. Early this year we saw a fire in a single factory exacerbate the already serious shortage of semiconductors.  



Particularly in light of the highly infectious Omicron strain, labor shortages will be an ongoing question this year, which started hampering growth late 2021. Widespread infection in factories could further threaten productivity without the right plans in place. Last year, we posted a blog about how digital transformation and artificial intelligence projects can help manage both near- and long term labor challenges which still rings true today. 

Still, while Omicron slowed growth late last year, 2022’s manufacturing growth forecast remains optimistic: capacity constraints at factories are expected to improve as constraints such as labor start to ease, but more importantly, Total Factor Productivity will grow as digital transformation projects complete, driving an uptick in production. In other words, manufacturers will begin seeing the benefits and results of the investments they made in preceding years. 

Particularly green initiatives have the potential to reshape a facility’s operations. For example, Kinta helped a client optimize their operations for energy conservation. Not only will this help reduce pollution in the long run, but the client will also see recurring annual savings. Making investments into products such as Kinta provides manufacturers with the resources to bounce back stronger than ever from the adversities of the past two years.

In conclusion, Kinta is headed into this year with cautious optimism. As vaccines continue to roll out, supply chains stabilize and artificial intelligence projects start to bear fruit, manufacturing has the potential to slingshot its way to greater levels of growth than before the pandemic. If you’d like to learn more about how you can future-proof your facilities, don’t hesitate to reach out to us at [email protected]