Businesses, including industrial automation companies, around the country and world have experienced disruptions in operations over the past 18-plus months due to a number of uncontrollable situations: the COVID-19 pandemic, the Texas deep freeze, the Suez Canal blockage, and the semiconductor chip shortage in China. These issues have hit manufacturing and automation industries particularly hard. While many businesses are recovering and operating as close to normal as they can, there are ever-present issues related to these challenges. Element Three , a marketing consultancy that works with leading manufacturing brands, wanted to pinpoint what the most impactful long-term implications are, and suggest ways to move forward.
By talking to 20 manufacturing companies ranging from Fortune 500 to regional leaders across the U.S., and combining that knowledge with first-hand experience with clients, the agency was able to identify four lasting impacts. Here we share the top remaining issues and how to address them.
1. Changing buyer behaviors
Buyer behavior has been changing for years, but COVID-19 accelerated the change as it became necessary for many businesses to sell primarily online for the first time. Manufacturers have had to enhance their digital presence and, in some cases, just begin to develop it, in order to meet customers’ changing behaviors. This is a major shift for many companies, as it was traditionally believed that more expensive or luxury purchases—like those often produced in automated factories—were nearly always purchased in-person. To overcome this challenge, manufacturers must enhance the online customer experience. This includes websites that are easy to navigate, virtual product demonstrations that go in-depth to showcase features, and access to more on-demand information about each product.
As the hybrid buying style of in-person and online is unlikely to go away any time soon, sales teams must be trained to nurture sales in both environments, as well.
2. Uneasiness around events
Events have historically been the main lead generation activity for many manufacturers. Last year, we saw events disappear or go virtual. This year, more events are coming back with in-person options, but should companies attend? This was a major question for manufacturers. Events are costly and also require a significant amount of time and team support. If a company chooses to attend, will potential customers also be there? While attending events may still be worthwhile, it makes sense to be incredibly selective this year.
Go back and analyze events from the past. Look at the number of leads from each show. Did they become customers? Some companies go to the same shows year after year simply out of habit, not because the show is actually a difference-maker. If shows have historically driven results, try attending again but expect some attrition. Ask for a list of attendees before signing up, and consider a different way to engage in the event.
For example, instead of being a booth sponsor, consider hosting a happy hour for attendees.
3. Labor shortage
While automated factories require fewer workers overall, the companies that operate them will still need support. Illness, job competition, and temporary shut-downs have caused delays in manufacturing facilities across the nation and around the world. To address labor shortages, companies need to treat their employment efforts like a demand generation activity. Be extremely articulate about why someone should consider working for your business. A competitive wage is obviously a need, but other benefits can make a huge difference in a job’s appeal.
Additionally, applicants should be able to easily learn more about the company’s culture and unique attributes that make it a great place to work. Your business is now competing with the likes of Amazon, Walmart, and major e-commerce players such as Wayfair for the same talent. Just like new competitors for products force companies to clarify their value statement, these competitors for employees are going to win if a business cannot clearly articulate why an employee should choose it over a household name like Amazon.
4. Supply chain disruption
There is no immediate solution for the challenge of simply being unable to complete orders due to a lack of parts. The good news? Everyone is experiencing this—so you’re not losing to competitors based on availability. The most vital aspect of dealing with supply chain disruptions is keeping customers informed. Despite what some may think, customers are largely understanding about delays, especially when they are aware of them in advance. Keep everyone aware of updates, and do not stop marketing and selling products even if they are on delay or out of stock.
This may sound counterintuitive, but keep in mind that your buying cycle is significantly longer than that of a consumer product. Increase your communication cadence so customers clearly understand when they can expect their product to arrive, and so they can promptly receive any important updates to their order along the way. This is truly a huge opportunity to differentiate based on your customer service capabilities. Automated factories and manufacturing businesses of all kinds are seeing record demand, but issues caused by challenges of the past year and a half are still limiting the ability to fully capitalize on this immense growth opportunity. By pinpointing each problem and tackling it individually, your company can take action to move forward successfully.
