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Since the pandemic began, we have learned a lot about the importance of supply chains. These silent ‘highways’, perfectly serving society, are now at the center of discussion. From reshoring to national security, rising costs to shipping disruptions, the global supply chain is changing before our eyes. Innovative investments in technology, workforce skills, and market access enable Illinois small and medium-sized manufacturers (SMMs) to not only adapt, but evolve to become the hubs of the global supply chains of the future. .
transform an established industry
Supply chains are evolving. As an example, look at the automobile industry. Illinois has always been a major auto manufacturing state. However, the automotive industry is currently undergoing a transformation as the move to electric vehicles is causing a historic restructuring of the automotive supply chain. Components that have been manufactured in Illinois for decades, such as engines and exhaust pipes, are gradually being replaced with new parts such as battery cells. As noted in the Center for Automotive Research’s Impacts of Electrification Transition of Electrification Transition of Illinois’ Automotive Industry report, the majority of American cars sold by 2040 will be electric. Additionally, about 70% of his more than 1,000 auto parts makers in Illinois have been identified as at risk of losing market share in the transition to electrification.
But the automotive industry is also a great example of Illinois’ industrial base adapting to new challenges. In Town of Normal, automotive startup Rivian is refurbishing a local Mitsubishi factory to assemble his all-electric adventure vehicle. And an hour north he’s in Joliet, where Lion Electric builds cars at the largest dedicated electric vehicle plant in the United States. These giants will stimulate the local economy and soar demand for new components made by other Illinois manufacturers in the automotive supply chain.
Simply put, change is coming to the SMMs that make up most of Illinois’ automotive supply chain. The production of electric vehicles requires the creation of many new components. There are risks for a small auto parts business, but opportunities for businesses that choose to evolve. With millions of new electric vehicles on the road, there is a lot of growth potential for small and medium-sized auto parts makers that can change production. Take action to create the productivity gains you need to succeed in the new EV market. You will need many new tools. That means integrating new technologies, new job skills and new market access plans. This is the moment the Illinois automotive industry transforms into a future supply chain leader.
New Technology: Automation
There are many new technologies to help Illinois manufacturers prepare for supply chain changes. The first consideration is automation. Of particular value to manufacturers struggling with labor shortages, automation technologies (such as robots and cobots) can improve efficiency and productivity in ways that reduce long-term operating costs. Contrary to popular belief, automation will not replace human workers. Rather, automation enables workers to perform new, complex, and productive tasks. However, installing new robotic systems can be expensive and difficult. So you can rely on experts and specialists like IMEC to take the guesswork out of selection and implementation.
New Skill: Career Pathway
Skill up is the key. Advanced equipment such as robotics requires a highly skilled workforce. Many of his future supply chains require workers with advanced skill sets. Today, it can be difficult to obtain the kinds of skills needed in the modern manufacturing workforce. Manufacturers will benefit from a dedicated “career pathways” system that allows employers to efficiently find, train and hire qualified workers for their businesses. A Career Pathway is a training program that fundamentally relies on imparting valuable job skills to new employees so that valuable workplace knowledge can be passed on to the next generation of manufacturers. Workers gain valuable skills and employers find the teams they need to succeed in the sector’s changing supply chain. IMEC proudly includes Career Pathways as one of the services he offers to his SMM in Illinois.
New Markets: Matchmaking
The Illinois SMM is a proven entrepreneur and plays an important role in the local economy. Now they have the opportunity to solidify their position as a key member of the global supply chain for decades to come. However, there are challenges in finding new markets for SMMs looking to grow. IMEC can help with this by offering a special “Illinois Manufacturing Matchmaking” service. Essentially, IMEC leverages good and well-developed relationships with key clients to introduce SMMs that may act as new suppliers. We at IMEC have had great success in finding customers for his SMM in the past. We partnered with NASA and its contractors to host a matchmaking event where products manufactured at her SMM in Illinois will be sent to Mars. If you run an SMM and are looking for new business opportunities, IMEC can help you launch your business literally out of this world.
Now is the time to act
Illinois manufacturing is making a long-awaited resurgence. Our state will be home to innovative new facilities like Rivian and Lion Electric. There is a lot to look forward to, but there are also challenges. His chain of future supply will require new tools. Now is the time for SMM to invest in innovative technology and worker skill sets to play a leading role in the coming manufacturing revolution. Illinois will continue to be a manufacturing hub well into the future. IMEC looks forward to being part of making that happen.
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