2021 Industrial Market Outlook: Trends, Challenges, and Strategic Opportunities

COVID‑19: Adjusting to the New Normal

“Adjusting to the New Normal”

Manufacturers spent most of 2021 adapting to COVID‑19. Safety protocols—temperature checks, reconfigured floor plans, expanded remote‑work options—became industry standard. The pandemic accelerated adoption of automation and digitalization that manufacturers had been considering pre‑pandemic. A 2021 MAPI survey found that 78% of CEOs expect permanent design changes to protect worker health and safety.

“78% of CEOs surveyed by MAPI say their factory floors will have permanent design changes for worker health/safety”

Labor: A Persistent Skills Gap

Finding Qualified Workers Hasn't Gotten Any Easier

Labor shortages remain the biggest structural challenge for manufacturers in 2021 and beyond. Although the sector lost 1.2 million jobs in spring 2020, it has recovered only half. A NAM third‑quarter survey showed that 55 % of manufacturers worry about recruiting qualified talent. Skills mismatches and the impending retirement of Baby Boomers—who will depart in the next few years—exacerbate the problem. COVID‑19 added further strain: 52 % of manufacturers anticipate that at least one‑quarter of salaried staff will work remotely on most days.

Reshoring & Supply‑Chain Resilience

Resilience is the New Mandate

Supply‑chain disruptions have intensified focus on reshoring and resilience. NAM’s Manufacturing Leadership Council survey reports that over 60 % of respondents plan to prioritize supply‑chain resilience, and 43 % intend to explore local production or reshoring. A McKinsey study indicates that 70 % of manufacturers expect to alter global sourcing strategies, with 32 % planning to relocate.

“A McKinsey study finds 70% of manufacturers expect to change global sourcing strategies, with 32% planning to relocate”

Industry 4.0: Building the Factory of the Future

Building the “Factory of the Future” on the Fly

COVID accelerated smart‑factory adoption. Forrester Research notes that the pandemic removed barriers to technologies such as 3D printing, augmented reality, and remote services. 2021 is seen as a transitional year: many firms are hiring knowledge workers to run advanced plants, and 20 % are shifting from disaster‑recovery to resilience strategies that allow minimal on‑site staff.

Diversity: Momentum Builds

The Movement is Gaining Momentum

Manufacturers are intensifying efforts to diversify hiring—targeting Black, Hispanic, and female candidates. The Manufacturing Institute’s Task Force on Closing the Opportunity Gap aims for a workforce that mirrors America’s diversity by 2030. CEOs are increasingly vocal on racial and social justice, driving organizational change.

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