A guide to help manufacturers

get safely back to business

beyond COVID-19

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Blindsided by

shifts in labor,

supply and demand?

The crisis affected manufacturers in three critical areas with labor, supply, and demand all hit simultaneously. Production capacity was instantly slashed as labor disappeared during global lockdowns. Supply of critical components was impacted with lead times ballooning. Next, demand was hit by changing consumer preferences in response to the crisis. Consumers began to stockpile FMCG items like toilet paper and face masks, and quickly reduced spending in many product categories. While other industries were able to modify their processes and implement remote working, this simply wasn’t realistic for many manufacturers. In the future, companies may oversee production remotely from their home office, and IOT may be in full swing. However, the manufacturing world simply wasn’t prepared this time around. Challenges continue to abound as organizations and governments reconsider the effectiveness of globalized production and supply chains. Now, as manufacturers consider how to get back to full production, we’ve put together a comprehensive guide with trends and insights to guide manufacturers during this reopening phase. Also, we’ve included our most helpful iAuditor templates to help get your business safely back.

The unexpected and sobering impact of COVID-19 is still reverberating across the manufacturing industry globally. For most manufacturing organizations, this is the most challenging period that they’ve experienced throughout their lifetime.

Table of contents

Blindsided by Shifts in labor, supply and demand? 1

Common insights in manufacturing 2

Trends in food and beverage manufacturing 8

Trends in automotive manufacturing 9

Trends in electronics manufacturing 10

Trends in textile manufacturing 11

Trends in chemical manufacturing 12

Trends in pharmaceutical and medical manufacturing 13

Trends in aviation manufacturing 14

How manufacturing leaders can get safely back to business 15

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As manufacturers recover from the disruptions brought about by the crisis, existing processes are being more closely examined. Previously overlooked weaknesses in production have now been tested with many delivering inadequate results, prompting much needed changes.

Laser focus on business continuity

Business continuity planning is front of mind as organizations scramble to reduce future interruptions to production. Supply chains previously considered robust have collapsed under new strains, and flaws in existing business models have been clearly exposed. Significant vulnerabilities with offshore manufacturing have appeared overnight, as Chinese suppliers shut their doors for weeks.

Now, as reopening begins, business continuity will be the first item on the agenda of many manufacturing organizations.

Common insights

in manufacturing

The overall economic impact on manufacturing varies considerably by category. As some product categories like bicycles, FMCG, and health care are experiencing decade high growth, others such as luxury automotive are seeing unprecedented declines.

While this trend had already commenced, it is now gaining momentum fast. Consumers are beginning to question the globalization of production and actively sourcing locally produced items. Product labels are being more closely examined, as manufacturers are bombarded with requests for ingredient origin. As an organic consequence of global supply disruptions, many local manufacturers are well placed to continue production. Immunity to supply constraints has provided local manufacturers with a compelling differentiator, instantly.

As large competitors fail to deliver on agreed deadlines, local manufacturers have stepped in to absorb these orders. The consumer-driven trend is set to continue with new government incentives emerging to further encourage businesses to manufacture locally.

Get safely back to business with these free business continuity checklists:

• Business continuity planning checklists

• Business impact analysis

• Compliance audit

• Crisis management plan

Free checklists for local manufacturers:

• Factory Reopening

• Manufacturing Facility Reopening

• Cal/osha COVID-19 General Checklist for Manufacturing Employers

• COVID-19: Screening Checklist for Visitors and Employees

• Social Distancing Plan Template for Workplaces Checklist

• COVID weekly GMP audit

• COVID-19 & Fresh Produce Protecting Your Workforce

• COVID 19 Employee Screening Questionnaire

The introduction of multiple new variables will require businesses to develop and test many different scenarios.

Enhanced focus on business continuity is set to continue indefinitely as organizations adapt to the new normal of post-crisis life.

Local manufacturing is back A well-recognized consequence of the crisis has been shifting consumer sentiment towards offshore manufacturing.

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Vacuums to ventilators and beyond Manufacturers globally are retooling at the speed of light to meet new market demand. As existing markets contract, companies are using their vast resources and connections to help governments respond to the crisis. Dyson workers have gone into production overdrive pumping out much-needed ventilators for the NHS in the UK.

While Brazil’s famous footwear brand Havaianas, has started producing everything from face masks to test kits. Japanese electronics manufacturer Sharp now has an entire TV factory dedicated to producing face masks. Even Britain’s Royal Mint in Wales has designed face shields for health professionals.

Other companies like Tesla have leveraged overseas partnerships to source vital supplies that are desperately needed locally. New players emerge from left field Competition is springing up everywhere for traditional manufacturing brands. Disruption of incumbents is occurring at a frenetic pace across industries, and most businesses didn’t even see their new competitors coming. Existing businesses are shifting production into unexpected categories and capitalizing on new opportunities.

However, the shifting in product categories is only part of the equation, as business models quickly adapt to market forces.

High street cookie stores have shifted from selling retail biscuits to large-scale production of dough. Italian restaurants are now manufacturing pasta and competing with supermarkets.

The breathing space and necessity of generating revenue throughout the crisis has proven to be the mother of all invention. The pace of change occurring across businesses hasn’t been seen since war times and may well change manufacturing forever. Leaders demand safety data in real-time The crisis has accelerated demand for real-time safety data, as leaders make critical operational decisions faster than ever. Increased compliance requirements, additional corporate responsibility, and shifting employee levels are some of the challenges. Previously, the digital transformation of safety information was considered optional - now it’s operation critical.

Contactless electronic records are being used for safer, real-time monitoring of almost everything. Use cases range from monitoring compliance with new sanitation programs to faster completion of onboarding checklists for contractors.

Many paper-based tools were already a burden to businesses - the crisis has just provided the push necessary for transformation.

Automate everything Around 85% of manufacturing is already automated and completed by machines. However, the remaining workforce required has now been exposed as a significant weakness.

Consequently, the cost-benefit analysis provides a more compelling case for industrial automation than twelve months ago. As manufacturers look to build additional redundancy, investment in technology and automation programs are considered key.

The ability to fill gaps exposed by the crisis and maintain full production is essential for long-term survival and continued growth. End-to-end supply chain visibility Severe component shortages have hit manufacturers from every industry. Now, the difficult supply chain questions are being discussed in zoom meetings across the globe.

Simple, easy to produce components have flatlined production capacity as supply evaporated. Even large multinational manufacturers have been crippled by supply issues with seemingly insignificant components that weren’t even on their radar.

Many of the issues could have been better managed with enhanced visibility of the entire supply chain.

Pre-crisis many manufacturers only had visibility of their primary or secondary suppliers, who managed additional sourcing requirements.

Manufacturers are now investing in the entire supply chain’s visibility, down to individual components or raw material sourcing From producers to digital health advisors Manufacturers have adopted the new role of health advisor to employees. As important information on the crisis is discovered, companies are using digital devices to educate staff.

From cascading health bulletins to providing virus updates or requesting daily health surveys. Early access to information in both directions has become a competitive advantage across organizations.

Digital tools are providing senior leadership teams with the data required to make difficult decisions on the fly.

Free checklists to help you protect your people:

• PPE Safety Inspections

• Temperature Log

• Social Distancing in Communal Areas

• General Guidelines To Protect Employees & Customers

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You can’t eat here anymore

Many companies have started allowing workers to reduce their daily work hours by thirty minutes to facilitate home eating. Social distancing requirements have presented unique challenges in communal areas used by employees. In particular, meal rooms used by workers throughout breaks in production have become problematic.

As many organizations operate with fixed floor space, accommodating social distancing quickly reduces meal room capacity. The lack of capacity has forced organizations to implement these novel solutions to maintain production levels.

This has resulted in manufacturers globally reconfiguring production lines, modifying tasks, and reducing interactions to meet social distancing guidelines. Plastic safety New physical dividers are popping up everywhere in factories across the globe. From plastic screens for security personnel to production space dividers, and enclosed receiving docks. Manufacturers have quickly embraced the trend of separating employees using plastic.

Using enhanced physical separation tools to reduce transmission will likely become an ongoing requirement for manufacturing organizations. Eventually, the sight of plastic separation screens in factories will appear as normal as gloves in a hospital. Clean it, now clean it again Shared machines, tools, and touchpoints are an unavoidable reality for many manufacturers. To ensure employee safety and reduce transmission of viruses, many organizations have stepped up sanitation programs. Previously, cleaning of common equipment was completed daily or twice daily.

Now, that has accelerated to several times per hour or more. In many cases, companies have hired specialized cleaning firms to complete these tasks, underscoring the need for additional digital reporting tools.

• Free checklists to prevent the spread of coronavirus:

• Prevention And Mitigation Of COVID-19 At Work

• COVID-19 Checklist for Employers and Employees

• COVID-19 Prevention and Work Practice Controls Checklist

• COVID-19 Cleaning and Personal Hygiene Inspection

• Cleaning Checklist• Hand Hygiene• Infection Control• Legionella Risk Assessment

Free checklists for social distancing:

• Physical Distancing Checklist

• Social Distancing Plan

• Social Distancing in Communal Areas

• COVID Dining Room Inspection MM Checklist

Mind the gap Before the crisis, production line workers manufactured goods side by side with other employees, and close physical proximity wasn’t an issue.

Now, every single human touchpoint is considered an unacceptable risk.

The challenge manufacturers now face is ensuring that contractors complete cleaning tasks to the standard required. In addition to formal satiation programs, workers are now being encouraged to use resources like hand sanitizer liberally, to manage their own risk of infection.

Spot, the safety marker As production employee numbers return to normal levels and production capacity increases, organizations are racing to implement social distancing markers.

From bright, painted lines separating staircases, elevators and entry points to round spots covering floors. These new markers and signs are providing workers with an important visual cue that this isn’t business as usual, at least not yet. Time to flex your shift Standardized start and finish times for production workers aren’t always achievable post-crisis.

Many manufacturers have been forced to implement staggered shift patterns during reopening. The new shift patterns provide reduced contacts between workers, while still allowing companies to meet production volumes.

Other organizations have increased operating hours to allow for more shifts throughout the workday. Cupboard or kitchen? Existing production areas are being quickly repurposed as organizations require more floor space than ever for social distancing. Manufacturers are recovering additional square feet everywhere from outdoor gardens to car parks, and even storage locations. Fast space transformations are allowing organizations to maintain peak staffing levels safely at minimal extra cost.

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sThe plan is to slowly increase the number of workers in groups of 40, ensuring safety and sustainable output. As workers return, they are greeted by extensive social distancing markers, placed two meters apart.

New markers have been introduced everywhere, from red tape hanging on the factory floor to cross marked urinals in bathrooms. Vauxhall have even introduced novel measures like individual ashtrays for workers in common areas.

One of the biggest challenges facing food and beverage manufacturers is maintaining social distancing throughout human-based processing tasks.

Historically, workers would complete processing tasks side-by-side with minimal distance between.

Now, social distancing guidelines are disrupting existing manufacturing processes across the sector.

Trends in automotive

manufacturingTrends in food and

beverage manufacturing The common theme across automotive manufacturers globally is a gradual transition back to full production. In the UK, Vauxhall has temporarily reduced production levels to maximize social distancing and get back to manufacturing sooner.

Japanese technology manufacturer Mitsubishi Electric are shaking up human-based food processing tasks one robot at a time.

Logos at a distance Global car manufacturers have become active participants in government social distancing campaigns. Some of the most recognized automotive brands have designed modified logos to encourage continued social distancing practices. Mercedes’ iconic combined three branch logo has been replaced by separated branches. While Volkswagen group have separated the VW letters and increased padding between Audi’s recognizable quad circle logo.

However, Mitsubishi have developed a new collaborative robot named ‘CoBot’ just in time for reopening. CoBot is designed specifically to work in collaboration with human workers in production lines.

The introduction of CoBot in factories provides the perfect social distancing spacer between employees while allowing organizations to reopen faster.

Material orders have become smaller and more frequent, leaving very little buffer. The lean, just in time supply chain has successfully freed up capital for other purposes and seemingly worked well for decades. Until the crisis hit, that is.

Now, significant weaknesses have been exposed in lean manufacturing. The impact has been particularly noticeable within electronics manufacturers. As Chinese suppliers disappeared into lockdown, the lead times for components ballooned amid component shortages.

Organizations must now reconsider previously unquestioned supply chain principals and retain some supply fat. Just in time supply is set to become just in case inventory.

While other industries have been chasing lean, ultra-efficient supply chains, fashion has remained largely unchanged.

Overproduction is the norm within fashion brands, as garments are produced seasonally in advance, then shipped into retail channels.

Market supply and demand are almost entirely disconnected, creating large volumes of unsold inventory.

Invisible demand The single biggest challenge facing global electronics manufacturers is visibility of demand post-crisis. Initially, the price of semiconductors spiked as shortages became apparent - now the next challenge is anticipating and responding to unpredictable demand.

The pricing of electronic components is likely to fluctuate until demand gets back to more predictable levels.

The excess supply is estimated to exceed 30-40% of overall production volumes. While significant levels of wastage are expected, these volumes have ballooned during the crisis, prompting calls for a shake-up of the business model.

The inefficiency of existing players has created opportunities for disruption by emerging businesses challenging the status quo.

Trends in electronics

manufacturing

Trends in textile

manufacturing

Inventory has become a dirty word in many manufacturing industries globally, as organizations attempt to align supply and demand with razor precision.

Fashion manufacturing is set to change forever, as the crisis exposes fundamental flaws in the existing business model.

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With many organizations unable to fulfil the insatiable demand created by the crisis, another unlikely manufacturer jumped categories to fill the void. As pubs shut their doors and purchase orders disappeared, London based 58 Gin turned to chemical production for the first time.

Guidelines published by the World Health Organization provided the team with all the information required to engineer effective hand sanitizer. Production quickly shifted from boutique gins for British bars to hand sanitizer for everyone.

The majority of drugs consumed throughout the developed world are produced in either India or China.

As borders closed, governments around the globe have acknowledged the risk that offshore production of pharmaceuticals poses.

Now, as the search for a vaccine continues questions surrounding access to drugs remain. Forget the patents Crippling shortages of medical equipment have led to unpreceded changes for medical manufacturers.

Packaging spikes Traditional markets for chemical manufacturers have contracted as the crisis impacted demand for chemical products normally used in production.

However, another new market has emerged with significant growth in chemicals used in the production of packaging. Demand for packaging has skyrocketed across food, health care items, and personal care use.

Organizations that operated tightly held monopolies based on intellectual property rights have started giving away their designs. Global giant

Medtronic has released the full designs of many best-selling ventilators to encourage supply. The diagrams have allowed manufacturers in Vietnam to start producing similar products within weeks.

Medtronic has actively supported production by other organizations even offering assistance to tweak software or resolve production issues.

Trends in chemical

manufacturing

Trends in pharmaceutical

and medical manufacturing

Chemical manufacturers around the world have wrestled with record demand for hand sanitizer.

Supply chain volatility brought about the crisis has highlighted major gaps in local pharmaceutical production.

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Trends in aviation

manufacturing

Aviation manufacturers have been heavily impacted by the crisis as passenger flights are grounded across the world.

New aircraft orders have disappeared, and existing orders have been postponed, as airlines assess the damage. Now, as the aviation industry prepares for reopening and increases in passenger numbers, capacity is front of mind. Social distancing restrictions will likely result in government-mandated restrictions on capacity for the foreseeable future. To compensate for the reduced capacity, airlines are seeking cost savings in other areas.

Emirates and other major airlines have already started working with manufacturers on weight-saving design changes. One of the primary design changes being by manufacturers is ultra-light material for passenger seating.

By introducing lighter material and small design changes to seating airlines can achieve significant reductions in weight and offset capacity restrictions.

SafetyCulture has digitized the world’s COVID-19 reopening guidelines into a simple digital checklists that any team member can use in minutes from their desktop or mobile device. iAuditor is used 50,000 times a day in over 80 countries to keep people safe and healthy.

How manufacturing

leaders can get safely

back to business

Getting safely back to business is now the number one priority in the manufacturing industry. In order to stay on top of your game in a post-COVID-19 world, staying cautious and measured is key.

Free checklists to help leaders get back to business safely:

• Factory Reopening

• Manufacturing Facility Reopening

• Mine Reopening

• Guidelines for Reopening of Businesses

• COVID 19 Employer Compliance Checklist

• COVID-19 Risk Assessment Template

• Workplace Checklist - COVID-19

• Business Reopening Plan

• Operational Readiness

• Return to Work

• Safely Back to Business

Make safety your edge

If you’re a site manager, owner, or operations manager, iAuditor can help provide the foundation of safety within your team. It’s helpful admin features mean that you can implement accountability within your teams. Review checklists, assign actions, and monitor dashboards to see real-time information on safety standards.

By integrating iAuditor with your teams, you can pave the way to win more business as you build a strong edge with safety.

Install checklists that help you identify items such as:

• Does everyone have the correct PPE?

• Are social distancing and hygiene processes being observed?

• Are visitors and customers aware of the safety standards that have been put in place?

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Put safety first by using checklists

Safety checklists are imperative to utilize in a post-COVID-19 world. Manufacturers might implement checklists such as our manufacturing facility reopening checklists, or our business reopening checklists.

As health is on everyone’s minds, it’s important to elevate the safety of your people first, in order to minimize disruption to supply chains. A simple checklist can ensure that sites are doing the right thing, by the right people, at the right times — without missing a beat.

Balance commercial growth and public safety

Safety has to be part of any business’ core proposition, but this doesn’t mean that commercial growth has to be compromised. Business continuity checklists can help you weather the crisis quickly and efficiently, with guidelines for both staff and customers.

Getting back to trading safely is top of everyone’s agenda, despite concerns about an additional ‘second wave’, or even the chance that the pandemic could be transmitted at your facility. It’s now necessary for businesses to forward plan for this possibility, covering roles and responsibilities should the crisis hit.

With iAuditor, you can draw up an inspection checklist for every facet of your operations. This means problems can be tracked, reported on, and resolved much faster.

iAuditor lets your team collect consistent data, standardize operations, send reports, identify failed areas, and get problems resolved with easy to use checklists.

You can share your manufacturing inspections immediately, at the touch of a button. Check the health of your staff, manage social distancing requirements, and make sure that your facilities are cleaned appropriately.

Build a robust safety culture

It’s now time for every business to have a genuine safety culture, and this is of the utmost importance in the manufacturing sector.

With iAuditor’s actions features, you can spot a task that needs to be completed, assign it to a team member, and alert them with an email, SMS, or a push notification. It also allows you to track and report.

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