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The biggest issues facing manufacturing today include persistent labor shortages and a widening skills gap, along with supply chain disruptions and the complexities of digital transformation and cybersecurity.

Key Challenges in Manufacturing:

• Skilled Labor Shortage:
  A significant and growing concern is the difficulty in finding and retaining skilled workers. Projections suggest millions of manufacturing jobs could be vacant by 2033 due to an aging workforce, shifts in career preferences, and a skills gap in areas like automation and digital technologies.
• Supply Chain Vulnerabilities:
  Manufacturers continue to grapple with supply chain disruptions, which can stem from various factors including tariffs, increased raw material costs, and labor unrest. These disruptions can lead to production delays, increased costs, and impacts on revenue.
• Digital Transformation & Cybersecurity:
  While embracing advanced technologies like AI and automation offers opportunities for efficiency and growth, it also introduces new challenges related to cybersecurity and the integration of new systems with legacy infrastructure. Manufacturers need to invest in cyber resilience strategies to protect against attacks and ensure business continuity.
• Rising Operational Costs:
  Inflation, increased raw material costs, and higher labor expenses are contributing to rising operational costs, impacting profitability and financial planning.
• Competitiveness:
  U.S. manufacturers face challenges in building competitiveness with global counterparts, especially for small and medium-sized enterprises.