Survey results published by Quality Magazine and Clear Seas Research offer insights into key concerns and trends for manufacturing businesses this year.
Here, we outline manufacturers’ top quality concerns in 2023, their budgets, priorities, and reasons for investing in quality.
Annual quality spending survey
Quality and Clear Seas Research conducted the 22nd Annual Spending Study to determine actual spending for quality assurance and control equipment, systems, software, and services. It was published at the end of 2022 when most respondents had drawn up their 2023 budgets.
The spending was compared to the budgeted amount, as well as the change in budget allocation within quality equipment and service categories.
The survey respondents were mainly quality professionals. Assembly and machining were the top manufacturing operations at their locations.
2023 quality budgets in the United States
In terms of 2023 spending, almost half of respondents (48%) anticipate spending the same as 2022.
Almost as many anticipate spending more, with 43% expecting an increase, by an average of 19%. Only 9% expect a decrease in the budget, on average by 25%.
Respondents planned to start spending early in the year. Twenty-five percent expected to make their first purchase in January and 61% in the first quarter.
Top concerns for businesses in 2023
Thankfully, COVID is no longer a top concern for businesses. In fact, it’s now the least concerning issue, with only 17% of respondents worried about it compared to 52% in 2022.
In 2023, the top three concerns are supply chain interruptions (69%), current economy/inflation (63%), and skilled labor shortages (56%).
These are the same top three concerns as last year, but the numbers have changed.
Supply chain interruptions
While supply chain interruptions are still the biggest worry (69%), they’re less concerned than last year, when 78% of respondents were worried about it.
Economy/inflation
This year, the economy/inflation is the second biggest and a growing concern for manufacturers (63%). Last year, the figure was 55%.
Skilled labor shortages
The shortage of skilled labor is still an area of major concern (56%), but less so than it was a year ago, when 65% of respondents were concerned.
Other key business concerns for 2023
Achieving business goals remains a top concern. As many as 40% of respondents are concerned about achieving goals in the next six months, only a couple of percentage points lower than the previous two years.
Thirty-six percent of respondents are worried about employees not showing up for work. This is 10% less than the number who were worried the previous year, but 2% more than the year before that.
The good news is that manufacturers are considerably less concerned than the previous two years about business stability over the next 12 months. Only 35% of respondents cited this as an area of concern compared to 46% and 51% in the previous two years.
IT cybersecurity with remote employees is also less of a concern than it has been. In 2023, 19% of respondents are concerned compared to 24% and 27% in previous years.
Manufacturers’ top reasons to invest in quality in 2023
Manufacturers’ principal motives for investing in quality are to:
- improve productivity
- reduce scrap and rework
- increase production capacity
- reduce costs
- replace equipment.
The focus on improving productivity is easily the biggest motivation for investment and, at 72% compared to 53%, is significantly stronger than it was just a few years back in 2019.
So, what are businesses planning to invest in? The top five planned quality investments are:
- General-use test, measurement and inspection equipment (calibration, laser systems, etc.)
- Test, measurement and inspection services
- Gages and gaging systems
- Product testing equipment
- Software application.
Other planned purchases include consulting and training services, optical inspection and measurement equipment, materials test equipment, non-destructive test equipment, form and surface measurement equipment, CMMs, and color and coating thickness measurement.
Ninety-six percent of respondents said they plan to purchase at least one of these items. So, how much are they budgeting to spend?
For general-use test, measurement and inspection equipment, three-quarters of respondents budgeted less than $60,000. For most, 2023 will bring a similar pattern. Calibration equipment dominates the category, taking up half of this budget.
Gages are a staple of a quality program and the budget reflects this. Budgets for gages and gaging systems for 2022 and 2023 look similar, with the majority of respondents budgeting under $60,000.
Nothing gets done without software, and more than half budgeted less than $20,000 for this item, which is set to continue in 2023.
For consulting and training, the majority of respondents expect the 2023 budget will remain the same. Twenty-eight percent of this budget will be spent on certification/registration.
Quality management and process improvement are slated for nearly one-third of this budget.
isoTracker’s quality software for 2023
isoTracker’s cloud-based QMS software is a secure, centralized system that can help alleviate manufacturers’ top quality concerns in 2023.
It includes a document control module, as well as complaints management, audit management, and training modules, with built-in CAPA capabilities. It allows users to access real-time data from anywhere in the world.
We offer a flexible pricing model that gives small to medium businesses access to affordable professional quality management software. You only pay for the modules you choose.
Also, isoTracker offers an obligation-free 60-day trial with full access to all modules and assistance. When you sign up, all the data created during the trial is preserved and carried over.
