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4 Things to Know About Manufacturing in 2023

Manufacturing companies in the U.S. and around the world are planning for what could be a tumultuous 2023, but sometimes, in chaotic economic conditions, there are opportunities if you know where to look.

Maybe you’re a manufacturer, and you’re trying to plan for equipment investments, like a slitter rewinder machine, or you’re thinking about how the labour market might look in the upcoming year.

Below are some of the things to know, broadly, about what could affect manufacturing in 2023.

1. Technology

There are a lot of risks that could impact manufacturing in 2023, and one way that you can protect yourself or insulate yourself somewhat from these risks if you’re in the industry is through the use of technology.

Advanced technology investments can help you become more resilient and mitigate the myriad of risks you might be facing down.

Manufacturers have largely increased digital investments over the past few years and have accelerated their adoption of emerging technologies. The companies that had already been in the midst of those investments tended to fare better during the pandemic than the ones that hadn’t.

With investments in technology like automation and robotics, you can potentially improve your efficiency, while AI and machine learning can give you a competitive edge.

2. You May Be Dealing with Voluntary Exits from Your Employees

We’re in a bit of a strange time economically right now. Inflation is high, and a recession seems to be right around the corner, if not already happening. At the same time, the labour market is strong, and employees have a lot of opportunities available to them.

Job openings in the manufacturing industry are especially high, and pay increases to deal with the talent shortage may not be enough.

Manufacturers will have to rely on other approaches to the labour issue, such as upskilling and reskilling current employees.

Having a diversity, equity, and inclusion strategy can help you attract talent who might not otherwise be drawn to the manufacturing industry.

You’re also likely going to have to redesign how your employees work to offer more flexibility in work arrangements to keep up with the evolution of work culture.

3. Supply Chain Problems

Around 80% of recently surveyed executives in manufacturing say they’ve felt a heavy impact from supply chain disruption over the past 12 to 18 months.

Many surveyed executives say they believe that disruptions to supply chains might be the biggest area of uncertainty in manufacturing in the coming year. Manufacturers are strategising to mitigate related supply chain risks by using more digital technology but also going back to some of the more traditional ways to do things.

For example, you could focus your efforts on building redundancy in your supply chain and put your sights on relationship management. You might also want to boost your local capacity so that you’re less exposed to transportation bottlenecks and logistical problems.

Supply chain issues, as they currently exist, could continue for more than another year, lasting well into 2023.

In a survey of manufacturers specifically related to supply chains, 73% of responding companies said they don’t believe their current supply chains are fully protected, and 12% said they believe their supply chains lack resilience.

4. Corporate Social Responsibility

The ESG landscape is going to be something manufacturers have to watch closely in 2023. A lot of organisations are voluntarily compliant with various disclosure frameworks, ratings, and regulations for reporting, but on a global scale, there’s a move toward more disclosure for metrics that aren’t financial in nature.

Particular implications for manufacturers could include managing waste, with almost ¼ of recently surveyed manufacturing executives saying they needed better capabilities for waste management. They also said that the use of technology could provide opportunities for improvements in product recycling for more sustainability in manufacturing operations.

Another effort that manufacturers say they’re looking at is increasing supplier diversity and the elevation of technology-enabled smart buildings that provide help with the achievement of carbon neutrality.

With regard to energy transformation, which can help operations become more sustainable, fleet electrification is one way to start.

The Department of Energy has programs that are available to strengthen battery supply chains, helping with fleet electrification.

Finally, as energy prices are so high right now, some manufacturers with current investments in the internet of things might repurpose those investments to help them keep their energy use under control.

For example, these existing investments might include IoT sensors and analytics, which can be used to measure energy use and optimise power bills.

Dipping Your Toes into Gold Investing? How To Prepare For 2023

In the coming years, both recession and inflation are likely. In light of this, now might be a suitable time to diversify your investment or increase your current gold holdings. Various factors come into play that influences the value of gold in the current year. These factors include rising interest rates, widespread inflation, and lingering geopolitical tensions.

Dipping Your Toes Into Gold Investing? How To Prepare For 2023

Dipping Your Toes into Gold Investing? How To Prepare For 2023

As 2023 draws near, you might be wondering about the status of the gold market. Although there’s no straight answer on how well gold will perform next year, there are several considerations to keep in mind that can give you a perspective on where gold is headed next year.

Aside from knowing the current status of the gold market, it would be best if you also considered checking out both local and online resources. Finding books to read when investing in gold and researching gold investments are excellent first steps. Here are the crucial considerations if you’re investing in gold in 2023.

Current Price Forecast for Gold

Gold has always been a valuable asset over the years. It’s one of the most highly desired forms of investment. Moreover, it’s in demand with its share of ups and down, given the market has grown over the years.

Today, it’s a stable and mature market. It’s crucial to remember that the gold market steadily moves up and down. Once the dollar’s value drops or when the stocks and bond markets decline, gold will also move in either direction. However, gold continues to thrive as a safe haven asset since it not only shifts differently along with the other markets, but it also holds its value well and grows steadily.

A Glimpse at The Historical Price of Gold

Gold has been around since ancient times as a crucial metal, but it was only around 550 BC that it was used as a form of currency. In the olden days, gold or silver was used as coins for most transactions. Gold played an important role during the Roman Empire and was eventually used throughout history. Over time, the precious metal went through various uses and eventually established itself as a key element on the market.

Factors That Affect the Price of Gold

Several factors play a role in its value as an established and mature market. Unlike stocks and bonds, gold stands out and acts distinctly. The reality that it functions as a hedge indicates that you must closely scrutinise other potential elements that uniquely impact other assets. Some factors to keep in mind include inflation, consumer demand, geopolitical factor, protection against volatility, interest rates, and dollar value, to name a few.

The consumption demand is about the use of gold as an asset. The demand continues to change, and recently, it has gained demand in the electronics industry due to its role in conductivity. Gold is also in demand in the jewellery industry, especially among those who want to invest in gold that they can store in central banks.

In addition, gold is an ideal choice of asset for individuals who want to safeguard themselves against volatility and uncertainty. The metal is also a physical asset that you can store, and its market shifts differently from the usual volatile markets, so it’s in demand for those hedging against uncertainty.

Some investors may choose gold if the domestic economy is growing or facing a looming recession. It’s crucial to remember that gold and inflation typically work together since the value of money drops negatively during inflation. Once this happens, people prefer to store money in an investment that grows in value, such as gold.

What To Expect with The Gold Prices in The Coming Years

The movement of gold is mainly upward, but it’s at a steady pace. With this in mind, the value of gold may increase, and there may be a positive trend in the coming years for several reasons.

One is the strong buying power of central banks. The central bank’s demand for gold has skyrocketed in recent years. The significant spike indicates that gold will remain an indispensable asset for central banks, likely to continue up to 2023. The higher interest from central banks may impact the price of gold, often driving up its value.

The looming recession is also a factor to consider, which can be favourable for gold. Generally, when a recession happens, the value of risky assets such as stocks and bonds tend to drop while gold increases.

Final Thoughts

The decision to invest in gold in 2023 will depend on your investment strategy and specific needs. Moreover, investing in gold has its risks and potential losses. Remember that gold is no different, but it’s considered one of the least risky investments.

Gold will always be in demand in various industries, central banks, and investors. Looking closely at the ups and downs of the gold market and the contributing factors to its value may help you decide whether to invest in gold this 2023.