Research Shows Manufacturing Workers Are the Least Engaged of All the Occupations Surveyed, Leading to Absenteeism, Loss of Productivity, and Business Disruption

StaffConnect has released a new eBook entitled, “Can Technology Help the Manufacturing Industry Solve Its Employee Engagement Crisis?”  The document reviews the current state of employee engagement in the manufacturing industry, discusses what has led to what can be described as epidemic levels of disengagement, reviews the resulting dire consequences – and offers immediately actionable solutions.

Employee engagement is defined in Forbes as “the emotional commitment the employee has to the organization and its goals.” While this is clearly a critical component of HR and internal communications strategy in any industry, engagement is particularly important in the manufacturing sector because of its exceptionally low levels of engagement. The 2017 State of the American Workplace report from Gallup shows U.S. manufacturing workers are the least engaged of all the occupations surveyed, with only a quarter of employees engaged—significantly lower even than the also disappointing national average of 33%.

Why is this happening? StaffConnect says that when examining some of the main issues currently plaguing manufacturing organizations, it becomes clearer why it’s tough to keep engagement levels high. The typical structure of manufacturing enterprises makes engagement more challenging (i.e., a high percentage non-desk employees (NDEs) on the manufacturing floor, or on the road).

But with today’s mobile technologies, there’s no reason for remote workers or those who travel out in the field to have to rely on sporadic email update, or out-of-date message boards to get the information they need. Mobile applications have the ability to reach the entire workforce, facilitate feedback, and generate engagement-related insights and reports. What’s more, instead of simply being peer-to-peer, integrated mobile engagement solutions enable operation managers to communicate with workers and vice-versa from any location.

“Clearly, the manufacturing sector faces some unique challenges when it comes to its workforce. But figuring out how to increase engagement is a worthy exercise from a bottom-line business perspective. Engagement enables businesses to reach their full potential by helping to create open communication channels, improve productivity, and retain talented staff. On the employee side, engagement helps workers fulfill a wide range of personal and professional needs that can ultimately lead to feelings of life-changing self-actualization and desire to make a social impact,” said Geraldine Osman, Vice President of Marketing, StaffConnect. “With this in mind, it’s important that manufacturers begin to build a business case for engagement.”

Ultimately, inspiring employee engagement in the manufacturing industry is about creating an emotionally connected organization where the entire workforce is empowered to interact, share, and collaborate with their peers and managers—no matter what they do or where they work.

To download “Can Technology Help the Manufacturing Industry Solve Its Employee Engagement Crisis?” in its entirety and to learn more about how technology can help employee engagement in the manufacturing industry, click here.

New report highlights technologies driving next-generation supply chains and how to overcome the top barriers to adoption

Atlanta, GA – MHI announces the release of the fifth in a series of MHI Annual Industry Reports developed in collaboration with Deloitte Consulting on April 11 during MODEX 2018 in Atlanta. The 2018 MHI Annual Industry Report, titled “Overcoming Barriers to NextGen Supply Chain Adoption” provides new insights into trends and technologies that are having a dramatic business impact on supply chains, their security and the people who run them.

Manufacturing and supply chain professionals are facing many challenges but, according to the report, the top two are increasing customer demands on supply chains (73%) and hiring qualified workers (64%).

Eleven technologies are working together to create next-generation supply chains that can meet these challenges because they are digital, on-demand and always-on. Eight out of ten survey respondents believe these supply chains will be the predominant model within just five years.

This year’s report provides updates on the innovative technologies MHI predicted would have the most potential to transform supply chains four years ago when the MHI Annual Industry Report was launched. The 2018 report includes two new technologies (Artificial Intelligence and Blockchain) that are rapidly emerging and also covers the potential of these technologies to disrupt the industry as well as their adoption rates and barriers to adoption. The 11 technologies covered in the report are:

• Robotics and Automation
• Predictive Analytics
• Internet of Things (I0T)
• Artificial Intelligence (AI)
• Blockchain
• Driverless Vehicles and Drones
• Wearable and Mobile Technology
• Inventory and Network Optimization
• Sensors and Automatic Identification
• Cloud Computing and Storage
• 3D Printing

“Early adopters are successfully combining next generation (NextGen) supply chain technologies to improve speed and agility and increase efficiency and visibility,” said George Prest, CEO of MHI.

Potential to Disrupt and Create Competitive Advantage

The top technologies respondents say can be a source of either disruption or competitive advantage are:

• Robotics and Automation (65%, up from 61% in 2017)
• Predictive Analytics (62%, up from 57% in 2017)
• The Internet-of-Things (IoT) (59%, up from 55% in 2017)
• Artificial Intelligence (AI) (53%, new category in 2018)
• Driverless Vehicles & Drones (52%, up from 30% in 2015)

Adoption Rates

Cloud Computing and Storage has the highest current adoption rate at 57%. Adoption is expected to grow to 91% over the next five years. Inventory and Network Optimization, now at a 44% adoption rate, is expected to grow to 90% over the next five years.

Over the same time frame, Predictive Analytics is expected to reach an 82% adoption rate, followed by IoT at 79%, Robotics and Automation at 73%, Blockchain at 54%, Driverless Vehicles and Drones at 50% and AI at 47%.

Top Barriers to Adoption

The top three barriers to adoption of these technologies are:

1. Making the business case for NextGen supply chain investments
2. Tackling the supply chain skills gap and workforce shortage
3. Building trust and security in digital, always-on supply chains

Supply Chain Talent Gap

To implement any of these technologies, firms need access to a skilled and increasingly digital supply chain workforce. This has been a theme in all five annual reports—and the talent gap is growing as the adoption of these technologies increases.

The top critical skills needed to compete in the NextGen supply chain according to the survey are strategic problem solving (49%), analytics/modeling/visualization (43%) and general business acumen and cross-functional knowledge (38%).

“Algorithms, automation, sensors, big data and artificial intelligence are dramatically changing what supply chain talent looks like, how to find it and how to retain it,” added Prest.

Emerging Trend: Blockchain as a Solution to Supply Chain Cybersecurity and Transparency Challenges

When it comes to cybersecurity, the sophistication of hackers and “threat actors” is the biggest risk (44%), followed by the lack of awareness of the threat within the organization (40%) and poor cybersecurity practices among suppliers (37%).

While cybersecurity concerns grow, the demand for transparency at every level of the supply chain is skyrocketing as consumers increasingly expect full information about the origin and history of the products they consume.

Blockchain’s unparalleled ability to enable transparent yet controlled data sharing—in a way that is extremely reliable, efficient, and highly encrypted—provides a powerful and robust platform to tackle some of today’s toughest supply chain challenges, while also providing an unmatched level of cybersecurity. This is where Blockchain can be a huge supply chain differentiator.

This year’s report introduces the topic of Blockchain and examines how it may be the answer to cybersecurity, trust and transparency challenges of supply chains.

The biggest barrier for Blockchain adoption is that very few people understand what it is or how it can realistically be used in their operations. Only 11% of respondents believe they have a working understanding of Blockchain technology and how it might be applicable to supply chains.

Adoption of Blockchain in supply chains currently stands at 5%, but it is projected to jump to 54% over the next five years.

Firms across industries can benefit from using Blockchain in their supply chains. Automotive manufacturers, food producers and pharmaceutical manufacturers, among others, can take advantage of the immutable and transparent nature of Blockchain to track product origin, then quickly and discreetly recall products that may have been produced with a defect. This minimizes brand damage, costs, and customer inconvenience.

The report also provides real-world case studies of NextGen supply chain technologies and recommendations for leaders for developing strategies implement these innovations.

“The time is now to think big, but start small and act fast. You don’t need to invest a lot to start testing these technologies,” said Scott Sopher, Principal and Leader of the Global Supply Chain Practice at Deloitte Consulting LLP.

“While the transition to NextGen supply chains is complex, inaction is not a strategy. Ignoring these important developments may leave your supply chain at a severe disadvantage in the future,” added Prest.

The findings in this report are based on survey responses from 1,100 manufacturing and supply chain industry leaders representing a wide range of industries. Half of respondents hold executive-level positions such as CEO, Vice President, General Manager, or Department Head. Participating companies range in size from small to large, with 47% reporting annual sales in excess of $100 million, and 10% reporting annual sales of $10 billion or more.

The report was released at a keynote panel during MODEX 2018 on April 11 in Atlanta’s Georgia World Congress Center and  can be downloaded at mhi.org/publications/report.

About MHI

MHI is an international trade association that has represented the material handling, logistics and supply chain industry since 1945. MHI members include material handling and logistics equipment and systems manufacturers, integrators, consultants, publishers and third-party logistics providers. MHI offers education, networking and solution sourcing for their members, their customers and the industry as a whole through programming and events. The association sponsors the ProMat and MODEX expos to showcase the products and services of its member companies and to educate manufacturing and supply chain professionals on the productivity solutions provided through material handling and logistics. MODEX 2018 is being held April 9-12 in Atlanta’s Georgia World Congress Center.

About Deloitte 


Deloitte refers to one or more of Deloitte Touché Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entitles. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Within the technology section of Roadmap 2.0, the potential benefits of utilizing augmented reality smart glasses within supply chains are briefly explored on page 26. Notably, three potential applications are mentioned: picking for order fulfillment, equipment maintenance and repair, and training support for new employees as they grow accustomed to their assigned tasks.

Before exploring why, first an explanation of what augmented reality smart glasses do. Augmented reality (AR) is different from virtual reality (VR) and mixed reality (MR), notes Dr. Randy Bradley, assistant professor of information systems and supply chain management at the University of Tennessee’s Haslam College of Business.

“Augmented and mixed reality maintain an existing physical reality, but add a digital element to create a value-added mix of real and virtual,” he explains, “as opposed to virtual reality, which completely immerses the user in a computer-generated and simulated environment.”

With AR smart glasses, an overlay of digital information—such as instructions, graphics or simulated screens—is displayed within the wearer’s natural view without obstructing the reflection of light off physical objects. “And mixed reality,” continues Bradley, “brings virtual and real worlds together to create new environments with digital and physical objects and sounds, as well as their data, coexisting and interacting.”

That combination of a view into the real world, supplemented by field-of-vision instructions that support the task at hand, is what gives augmented reality smart glasses so much potential within supply chains, says Jay Kim, chief strategy officer at Upskill, a company that creates enterprise software for AR devices.

“Smart glasses really have the potential to transform how people work, particularly within processes that require a lot of labor-intensive manual work to accommodate high variability,” he notes, adding that processes like picking, packing, sorting and kitting are ideal examples.

Pictures of required products, diagrams of product locations in storage rack, turn-by-turn directions while navigating a warehouse, or illustrations of where to place specific items within a parts kit all contribute to faster, more accurate workers. Not only does this support increase efficiency for experienced associates, it also helps to onboard new employees, as well as eliminates language barriers in a multi-cultural workforce.

In maintenance and repair applications, a technician wearing augmented reality smart glasses no longer has to refer to a printed manual of instructions, keeping their hands free to perform the tasks. Time is saved because the smart glasses can display step-by-step images or diagrams of how to repair the machinery. Further, equipping the smart glasses with a camera would allow them to broadcast images of the equipment being worked on to a remote technical assistance location off-site for additional diagnosis and repair recommendations.

Bradley also says some companies are evaluating the use of augmented reality smart glasses for monitoring and boosting worker productivity through gamification.

“Operations often introduce performance incentives on a team- or shift-wide basis; smart glasses could potentially allow them to track down to the individual level and make it so each person is aware of what the others are doing to encourage competition in terms of speed, accuracy and so on,” he explains.

To learn more, check out MHI Solutions third quarter 2017 article “Augmented Reality Smart Glasses,” here.

Both Bradley and Kim will be participating in a MODEX 2018 keynote panel discussion of the findings contained within MHI’s fifth Annual Industry Report on Wednesday, April 11, 2018. Starting at 8:45 a.m., the presentation features insights into the report and several key next-generation supply chain technologies. Joining them in the discussion are eight other participants from academia, the supply chain industry, and technology experts.

Additionally, several MODEX exhibitors will be highlighting augmented reality wearable systems—along with a host of other next-generation technologies—within MHI’s newly created Smart City Logistics & Connected Supply Chain solutions center, located in Hall C. For more information or to register, visit modexshow.com.