Despite supply headwinds, labor shortages, and an uncertain economic environment, the manufacturing industry continues to surpass the expectations of previous years. To maintain this growth, leaders should leverage digital technologies, adopt strategies for the future of work, and drive supply chain resiliency. Our 2023 outlook explores five manufacturing industry trends that can help organizations turn risks into advantages and capture growth.

Manufacturing has demonstrated continued strength in 2022, building on the momentum it gained emerging from the pandemic, and surpassing expectations from the prior two years. While overall demand and production capacity have hit recent highs, there are indications that the near-term outlook may not be as bright.

The industry is currently experiencing concerns related to inflation and economic uncertainty. In addition, manufacturers continue to grapple with talent challenges that may limit the industry’s growth momentum. Moreover, supply chain issues including sourcing bottlenecks, global logistics backlogs, cost pressures, and cyberattacks will likely remain critical challenges in 2023. As leaders look beyond leading amid disruption and revamp their approach, our 2023 manufacturing industry outlook examines five important trends to consider for manufacturing playbooks in the year ahead.

Source: Deloitte

​California stands as the center for manufacturing output in the United States with over 35,000 manufacturing firms and employing over 1.2 million Californians. Since California supplanted New York in 1965, our manufacturing firms have created new industries and supplied the world with manufactured goods spanning aerospace, computers and electronics, and, most recently, zero emission vehicles. California continues to expand its manufacturing prowess into new and emerging technologies with companies spanning industries from food and beverage, machinery, computer and electronics, chemicals, aerospace and motor vehicles.

California Manufacturing Facts

Manufacturers in California account for 10.36% of the total output in the state, employing 7.57% of the workforce. Total output from manufacturing was $324.43 billion in 2019. In addition, there were an average of 1,222,000 manufacturing employees in California in 2020, with an average annual compensation of $112,381.20 in 2019.

Manufacturing Output and Firms

Total Manufacturing Output ($billions, 2019):      $324.43
(Percent share of total gross state product):        10.36%
Manufacturing Firms in California (2017):             35,321

Employment and Compensation

Manufacturing Employment (2020):                                      1,222,000
(Percent share of nonfarm employment):                             7.57%
Average Annual Compensation (Manufacturing, 2019):      $112,381.20

Sources: National Association of Manufacturers (NAM)

The 2022 Search Fund Study reports on the financial returns and key qualities of search funds formed in the United States and Canada since 1984. This report updates the previous 2020 study with data through December 31, 2021.

​This study provides data to support the search fund community including current searchers, CEOs, investors and entrepreneurs evaluating whether they want to pursue a search fund.

According to the New York Times: Companies are testing whether the United States can regain some of the manufacturing output it ceded in recent decades to China and other countries.

General Motors disclosed in December that it was considering spending upward of $4 billion to expand electric vehicle and battery production in Michigan. Just days later, Toyota announced plans for a $1.3 billion battery plant in North Carolina that will employ 1,750 people.

Micron Technology said it planned to invest more than $150 billion in memory chip manufacturing and research and development over the next decade, with a portion of that to be spent in the United States. And in November, the South Korean giant Samsung said it would build a $17 billion semiconductor plant in Texas, its largest U.S. investment to date.

“Reshoring is not going to happen overnight, but it is happening, and it’s exciting,” she said. “If you place an order offshore, there is so much uncertainty with a longer lead time. All of that adds up.”

It is unusual to see positive economic indicators paired with historic labor and supply chain challenges. But this is the trajectory for US manufacturing in 2022 emerging
from the pandemic. The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand. As industrial production and capacity utilization surpassed pre-pandemic levels midyear, strong increases in new orders for all major subsectors signal growth continuing in 2022. Deloitte projections based on the Oxford Economic Model (OEM) anticipate GDP growth in manufacturing of 4.1% for 2022.

​About the Deloitte survey:
To understand the outlook and perspectives of organizations across the energy, resources, and industrials industries, Deloitte fielded a survey of more than 500 US executives and other senior leaders in September 2021. The survey captured insights from respondents in five specific industry groups: chemicals and specialty materials, engineering and construction, industrial products, oil and gas, and power and utilities.

Source: Deloitte

​This note is a biannual study completed by IESE Business School on search funds that were formed outside the United States and Canada. It was undertaken in partnership with the Stanford Graduate School of Business and uses a quantitative, survey-based research method in order to gain insight on the financial returns and important characteristics of all known international search funds, including the qualities of search fund entrepreneurs. The study targeted all known search funds outside of the United States and Canada, in close coordination with the Stanford study, with data drawn from 83 first-time search funds. The sample set is diverse, with international searchers in 22 countries on four continents.

​Source: IESE Business School University of Navarra
https://awaytolearn.iese.edu/