Positioning for Success in the New Year
By Lisa Anderson
Manufacturing has been in contraction according to the Manufacturing PMI (Purchasing Managers Index) for the last few years, while geopolitical risks are heightened and tariffs have created additional uncertainty, yet the future is starting to look bright. Investments and expansions are picking up, which will stimulate opportunities in the New Year. The most successful manufacturers will position for success by preparing for opportunities, mitigating risks and building resiliency and capabilities.
Opportunities are Coming Down the Pike
n recent years, the U.S. has seen an unprecedented surge in investment commitments across manufacturing, clean energy, semiconductors and infrastructure. Companies have announced more than a trillion dollars in new facilities, expansions and technology projects, supported by major federal programs such as the Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act. According to the National Association of Manufacturers, manufacturing activity generates one of the strongest ripple effects in the economy, with each dollar spent creating multiple dollars of broader economic impact. As this wave of investment accelerates, manufacturers that are prepared and agile will be well-positioned to capture new business and expand revenue.
For example, as the U.S. invests in drone production, there will be several materials, components and electronic manufacturers that will have the opportunity to gain new business. These manufacturers will further stimulate demand for rare earths and critical minerals mining, processing and manufacturing. Similarly, an industrial equipment manufacturer that had primarily served the food industry with complex air flow systems saw an opportunity when electric vehicle production expanded. Because they had prepared for growth and actively sought new markets, they successfully adapted their equipment for EV applications and secured a major customer in that sector.
Mitigating Risks
Even as manufacturers position themselves for growth, they must also address critical vulnerabilities. China’s dominance in rare earths and other critical minerals, accounting for roughly 60 percent of global production and influencing as much as 80 percent of processing capacity, illustrates how concentrated supply chains can quickly become points of failure. Any dependency linked to these materials should be treated as a strategic risk. Manufacturers should conduct a thorough assessment of their end-to-end supply chains, identify exposures and prioritize mitigation based on impact. Diversification will require investment, but beginning with the highest-risk categories and implementing disciplined improvement initiatives, such as lean SIOP (Sales, Inventory and Operations Planning), increased automation, artificial intelligence and other advanced technologies, can strengthen resilience and build long-term capability.
For example, an industrial manufacturer struggled to keep up with changing customer requests as their work processes required manual intervention to maintain high service levels. Thus, they rolled out scheduling upgrades and focused on implementing MRP and capacity planning tools that were available in their ERP system. By utilizing this functionality, they were able to automate 80 percent of the manual workload, focus high-skilled resources on managing exceptions and they built the capabilities and capacities to expand to additional product lines.
Building Capabilities and Capacities
The best way to be prepared for success is to invest in talent. As Baby Boomers retire, statistics show that entry-level workers are not fully qualified or trained to take on their jobs. The only way manufacturers will be ready for opportunities is to build talent. Leading firms are forging partnerships to expand apprenticeships, hands-on training and upskilling initiatives, while also pairing new employees with experienced mentors and creating pathways for emerging leaders. Cross-training is increasingly essential to ensure agility and continuity across operations. Scaling from modest production volumes to large-scale output is not feasible without a robust talent pipeline supported by modern processes, new ways of thinking and AI-enabled strategies. Manufacturers that take talent development seriously will be the ones best positioned to capture the opportunities ahead.
The Bottom Line
As new opportunities emerge, organizations that have strengthened their capabilities and built resilience will gain momentum and capture market share. Those that fail to adapt will find it increasingly difficult to compete in a rapidly evolving global landscape. The coming years will offer an exceptional window for manufacturers that can scale effectively while managing risk, protecting margins and sustaining high service levels. The companies that invest in talent, technology and operational readiness now will be the ones that lead the next wave of growth.
Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth.
