Are You Ready to Compete in 2024?

By Dan Janka, President of Mazak

POSTED ON 12/4/2023 – In 2024, economic factors will continue to challenge manufacturers. The manufacturing sector will continue to experience a mild recession as the consumer-driven part of the economy quickly slows. With 10,000 baby boomer generation employees predicted to leave the workforce per day, according to a report by ITR Economics, the labor shortage will also persist in the coming year. On top of all this, wage rates will climb along with interest rates and energy costs.

While the outlook may seem somewhat bleak, the new year will bring new opportunities in manufacturing. Foreign investment, reshoring activity and vertical expansion within certain market segments are and will continue to keep recession in check. Those sectors, according to a 2024 Oxford Economics Outlook, include semiconductoraerospace, defense, private space explorationautomotive/EVmedicalinfrastructure and surprisingly oil and gas.

Faced with both challenges and opportunities in 2024, today’s manufacturers must ask themselves one very critical question: How will we continue to compete in such an economic environment?

The answer: Advanced manufacturing technology. However, yesterday’s technology won’t secure tomorrow’s success.

According to the ITR Economics report, 2024 is the year manufacturers need to “get their houses in order” to prepare for the expected upswing in 2025. In light of this, manufacturers – both large and small – must continue to invest in innovative technology to  overcome industry challenges and compete effectively in expected growth industry sectors.

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