We are again living in uncertain times. The name for uncertain times is VUCA, which stands for Volatility, Uncertainty, Complexity, and Ambiguity. It describes constant, unpredictable change that is now the norm in many industries and areas of the business world.
Here is a partial list of the factors that are causing VUCA for industrial equipment manufacturers:
- Owners and investors expect growth
- Supply chain uncertainty
- Labor shortages (NAM projects 2.1 million unfilled U.S. jobs by 2030) and turnover (39% in 2022)
- Inflation dropping (maybe)
- Ever-increasing customer expectations
- Reshoring
- Climate change
- Interest rates (maybe) declining
- Frequent price changes
- Digital transformation
- Generative AI
- Almost 50% of all quotations result in no buyer action
It is no wonder that managing a manufacturing business in VUCA times can lead to frequent adjustments in both short- and long-term plans.
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About Middlesex Consulting
Sam Klaidman is the founder and principal adviser at Middlesex Consulting. He helps his B2B product manufacturing clients grow their service revenue and profitability by applying the methodologies and techniques associated with Customer Value Creation, Customer Experience, and Market Research professions to assist his clients in designing and commercializing new services and the associated business transformations. Contact Sam here.