The future of manufacturing: ESG, talent and supply chains

The global manufacturing industry is undergoing a transformative era, driven by evolving approaches to sustainability, talent dynamics, and supply chain strategies. Part two of our manufacturing survey, commissioned by IFS, provides a comprehensive analysis of these trends based on a global survey of senior decision-makers in manufacturing.

Key Findings:

• ESG Integration: 98% of manufacturers acknowledge the importance of ESG (Environmental, Social, Governance) factors, with 68% in the initial or developing stages of their ESG journey. However, only 21% have fully integrated ESG activities into their business strategies.
• Talent Recruitment: Manufacturers face significant challenges in attracting and retaining skilled workers due to competition from other industries, skills shortages, and negative perceptions of manufacturing jobs. Strategies to address this include flexible work policies, inclusive workplace cultures, and investments in STEM education.
• Supply Chain Resilience: Nearly all manufacturers (98%) are rethinking their geographic strategies to enhance supply chain resilience.

Approaches such as nearshoring, friendshoring, and onshoring are being considered to balance resilience, sustainability, and cost considerations.

Strategic Priorities:

• ESG as a Strategic Driver: ESG is moving beyond compliance to become a catalyst for operational improvement and new business models. Companies that lead in ESG integration are expected to achieve long-term competitive advantages.
• Workforce Development: Investing in skills development, promoting inclusive cultures, and enhancing employer branding are essential for attracting the next generation of workers.
• Supply Chain Innovation: Advanced digital tools and localized supply chains are enabling manufacturers to be more responsive, reduce risks, and maintain sustainability standards It is imperative for manufacturers to embrace ESG practices, invest in talent, and drive supply chain innovations to navigate today's challenges and position themselves as leaders in an increasingly dynamic and competitive market.

Download our report to discover more today.