Keeping pace with advancements in technology, ongoing workforce and supply chain challenges and preparing for fluctuations in demand: Those are some of the challenges the manufacturing sector will face in 2024, according to panelists who will participate in the Business Record’s Made in Iowa Manufacturing Forecast, scheduled for 11:30 to 1 p.m. on Aug. 9.

This year’s panelists include Laura Phillips, vice president of engineering at Pella, Michael O’Donnell, director of CIRAS at Iowa State University, Megan Green, counsel and engineering manager at Weiler, Dereck Lewis, owner of Thelma’s Treats, and Thomas Root, associate professor of finance and department chair at Drake University.

In advance of the Manufacturing Forecast, we asked panelists what challenge their company or the manufacturing sector would face in 2024, and a solution or strategy they are employing to address that challenge. Here are some of their responses, which have been lightly edited for brevity.

Laura Phillips
One challenge that Pella and the manufacturing industry are facing is keeping up with advancements in technology. Manufacturing technology looks vastly different than it did just five to 10 years ago, and it plays a pivotal role in shaping our industry. It can provide insights for improved decision-making, enhance operational efficiency and safety, and improve team member experiences. Staying at the forefront of technological advancement requires specialized knowledge, skills and investments from the organization. At Pella, we are investing heavily in strategies to advance and deploy technology. Our priorities include digitizing and modernizing our operations with Smart Factory solutions, as well as automating complex processes to make the work easier and more efficient for our team.

Michael O’Donnell
A key challenge for manufacturing executives in 2024 will be rebalancing the business. We’ve spent the past three-and-a-half years in emergency response mode. Early indications are that supply chains are settling, and companies are closer to meeting labor needs. Now is the time to step back and assess the overall business to make sure the right resources are in the right place. Consider comparing your headcount, costs and product mix from 2019 to 2023: This will help you better identify positive changes that you can leverage, and unwanted ones that can be fixed.

Thomas Root
The 2024 national and regional manufacturing outlook is not surprisingly tied to the broad macroeconomic environment. Recently there have been signs of a slowdown in production. This is reflected in the regional employment numbers in the industry. At the end of June, there were 7,000 fewer manufacturing employees in Iowa, Illinois, Minnesota, Missouri, Nebraska and Wisconsin compared to the end of April. Slightly over 1,000 of that decline came in Iowa. This reduction in employment is a possible sign of slowing economic growth, which could place significant pressure on the industry over the next 12 to 18 months. Successfully planning for potential variability in demand will be key to being successful in 2024.

Megan Green
I anticipate our biggest challenge in 2024 will be maintaining our workforce and our supply chain. If demand for our product remains as strong as we expect it to, we’ll have a difficult time keeping up unless we can continue to add employees and our supply chain partners can maintain higher levels of output capacity. In terms of strategy, we are increasing our ability to manufacture in-house so we are less dependent on third parties. We have also added alternate work schedules (4×10 and 3×12) to attract and retain employees. Each of these strategies has its limits, but we are making other small and incremental changes that will help, too.