Hartford Business Journal

By Sean Teehan Hartford Business Journal Contributor B etween workforce issues, the acceleration of new technology and heightened supply chain disruptions, Connecticut manufacturers have their work cut out for them in 2022. These aren't new trends for manufacturers, but a pandemic- induced reshuffling of the labor market and other disruptive conditions COVID-19 has imposed have exacerbated some of them. In addition to supply chain, workforce and technology concerns, experts say the industry can expect an uptick in M&A activity and a sharper focus on clean energy in 2022. The next year should be a dynamic and challenging one for Connecticut's manufacturing industry, but nothing companies cannot handle, said Colin Cooper, the state's chief manufacturing officer. "Connecticut manufacturing has been in a constant state of flux and development since its evolution at the dawn of the Industrial Revolution," said Cooper, who recently announced plans to retire in 2022. "While the pace of change continues to accelerate, Connecticut manufacturers are well positioned to address the coming challenges." Supply chain disruption Challenges and disruption in getting and shipping material and products have always been a feature in the manufacturing industry. As shutdowns and confusion amid periodic COVID-19 spikes across the world have thrown supply chains for all industries into turmoil, manufacturers have been no exception. Throughout 2022, manufacturers will spend a lot of time dealing with and finding solutions to supply chain issues that will emerge, said Brittany Isherwood, president of Farmington-based Burke Aerospace. "Supply chain issues will be solved in part through local and domestic sourcing as manufacturers quickly learn to overcome them to satisfy their customers," Isherwood said. There's been a lot of talk nationwide about companies "reshoring" operations to the United States, rather than outsourcing manufacturing to far-flung regions with cheap labor costs, Cooper said. The logic is that employing more expensive labor at home could be Industry Outlook: Manufacturing While challenges persist, CT manufacturers have new opportunities in technology, clean energy, offshore wind Burke Aerospace President Brittany Isherwood said manufacturers will have to focus on local and domestic sourcing in 2022 to overcome supply chain issues. PHOTO | STEVE LASCHEVER Colin Cooper Jeff White Chief Manufacturing Officer Colin Cooper (center holding red folder) visits Plantsville-based Sign Pro Inc. PHOTO | CONTRIBUTED a net positive for companies, since they will have reliable access to their products and won't be interrupted by backups at ports or spikes in international transportation costs. Additionally, Cooper said, productivity gains facilitated by new manufacturing technology and increased labor costs in developing markets are lowering or eliminating the cost differential for offshore producers. But attorney Jeff White, a partner at Robinson+Cole who leads the law firm's manufacturing practice, said he thinks talk about companies reshoring may be overblown. "Yes, there will be reshoring, but I am not convinced that this trend will explode in 2022," White said. "There are significant challenges for doing so, particularly when the manufacturing involved is labor- intensive." Recruiting and talent development Connecticut has spent years trying to develop a pipeline of younger workers to enter the manufacturing industry to replace a large number of older workers set to retire in the next few years, and that effort will continue in 2022, Cooper said. "Even considering productivity growth, we estimate that we will need 6,000 to 8,000 new entrants into manufacturing annually for the foreseeable future," Cooper said. Isherwood said manufacturers will spend the next year trying to develop their talent pipelines through partnerships with other companies and schools, in order to address skills gaps and align the next generation of operators with current technology. Additionally, Cooper said the state is actively engaged in identifying new pools of talent and providing training opportunities to those individuals. Accelerated technology adoption Manufacturers will also be looking at which new technologies they should adopt to streamline operations, experts said. Automation technology and advanced manufacturing will be the two major tech focal points for companies in 2022, Isherwood said. And technology could be used to help address labor shortages. "Automation continues to be at the 25 HARTFORDBUSINESS.COM | JANUARY 3, 2022

• Cover