Forecasting what the year will bring is always difficult, especially during a pandemic. (Just ask anyone who made plans for a big event in late January only to see it spoiled by the arrival of the omicron variant.)
But the National Association of Manufacturers and its Manufacturing Leadership Council are making an attempt to define critical issues facing U.S. manufacturers, asking: "What's Ahead in 2022?"
NAM, which recently named Dow Inc. CEO and Chairman Jim Fitterling as its board chairman, said manufacturing has shown resiliency, with production 2 percent higher at the end of 2021 than it was in February 2020, according to Chief Economist Chad Moutray. Moutray expects the economy to grow 4 percent in 2022.
However, some big hurdles remain, including a labor force that is not likely to return to pre-pandemic numbers. That's due to people aging out of the workforce and people with young children who are worrying about a lack of child care and schooling, Moutray said.
We should expect more use of automation and Industry 4.0 investments to help companies cope with workforce shortages. At the same time, supply chain kinks are likely to continue, so expect officials in Washington to propose legislation to help solve those issues.