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Manufacturing Industry Risks
August 20, 2018
Manufacturers reported greater concerns about attracting and retaining talent, safety on the job and returning employees to work after an injury, compared to businesses overall.
As increased automation, globalization and a changing workforce continue to reshape manufacturing, the top manufacturing concerns reflect these emerging trends. With a growing skills gap for highly technical jobs, manufacturers are more concerned about attracting and retaining workers (63%) and workplace injury (47%) than the general business population.
The impact on the business if highly skilled employees are injured can be significant, both in terms of lost productivity and increased medical costs. With soft tissue injuries and chronic pain bleeding into healthcare costs, manufacturers need proactive management of their workers compensation process to contain costs and help employees through the process of returning to work. Manufacturers are more worried (35%), compared with other industries about effectively returning employees back to work after an injury.
The loss of critical equipment can also present challenges for manufacturers, particularly if that equipment is not insured for its full replacement cost. Contrary to what manufacturers may believe, the cost of replacing aging equipment may actually increase over time. And while two-thirds of manufacturers say they have a business continuity plan in place, it may not address leased equipment, another area in which manufacturers are often not fully insured.