Survey: Automakers Reevaluating Lean, Moving Away from Just-In-Time

A new survey commissioned by ABB Robotics reveals that supply-chain disruption and rising material costs has executives at automotive OEMs and their suppliers reevaluating their lean-manufacturing principles, shifting from just-in-time to just-in-case strategies.  Manufacturers are holding more stock to protect against unplanned disruptions, finds the survey, produced in partnership with Automotive Manufacturing Solutions magazine. 

When asked to select their top three challenges, 62 percent of survey respondents cited ongoing supply-chain concerns, while 41 percent cited the impacts of material and component-price increases; 31 percent pointed to growing labor costs and shortages.

Specifically, when questioned about labor and skill, 56 percent cited specific skills shortages as concerns, 48 percent believe that new skill sets are required, 35 percent believe there’s a lack of education, training and qualifications, and 29 percent express concern over uncompetitive pay and working conditions.

When asked how significantly various technologies will change the industry, 50 percent of respondents view digitalization and data management as extremely significant, 43 percent say the same about automation and robotics, and 39 percent of respondents view modular and flexible manufacturing  as extremely significant.