It is clear looking at the results of Lab Manager’s 2024 Industry and Equipment Trends Survey that the top challenges facing labs boil down to two important areas: money and employees.
Put another way, most laboratory managers aren’t going to be able to solve their most significant problems on their own; rather, they’re going to need to reach out to other departments for help, whether that’s the human resources (HR) office, finance team, or executive suite.
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Respondents to the independent survey were asked to choose up to three top challenges. Here’s what they said, along with Lab Manager’s parenthetical groupings among money and employees:
- Budgets—57 percent (money)
- Investment in tools, equipment, and instruments—55 percent (money)
- Attracting and retaining the right staff—54 percent (employees)
- Effective leadership and management—42 percent (employees)
- Sufficient lab space—26 percent (money)
- Lack of government support—16 percent (money)
- Innovative research—14 percent (money)
- Individual development—14 percent (employees)
Credit: Lab Manager
Budget growth requires clear lab metrics
With finances being among the top challenges facing labs, future budget growth is a concern. Thus, it will be important for labs to position themselves strategically in terms of return on investment, whether that be in research efforts, test volume, or other metrics. Convincing a finance committee or executive to spend money on new capital purchases or more lab space will require clear indicators of how the lab contributes to the bottom line, especially compared to other departments within the organization.
This exercise may require introspection from lab leaders, particularly in certain industry segments. Medical labs, for example, have historically struggled to present themselves as a revenue generator1 within health systems.
Likewise, reaching out for support from HR will be an important aspect for any lab hoping to attract and retain talent. Shortages in lab staff have plagued hiring endeavors in biotech2 and medical laboratories3, for example.
“Oppose short-term Band-Aids lowering personnel standards, particularly medical laboratory science,” a survey respondent advised others when describing trends in the industry. “Support quality, long-term solutions.”
With finances being among the top challenges facing labs, future budget growth is a concern.
Some labs have endured scuffles in more difficult staff-retention environments. “The welfare and well-being of the technologist [and] career elongations to senior chief technologist and principal chief technologist is not yet accepted by [my employer],” wrote one presumably disgruntled respondent.
Money, AI, and automation commingle in labs
Tight budgets also play into innovation, particularly technology adoption. Asked in the survey about the biggest pain points when evaluating and rolling out new technology, a whopping 64 percent noted the difficulty in getting budget approval. That response was one of the largest percentages of any answer in the poll. It speaks to the tug-of-war between wanting to use innovative technology and the reality of paying for it.
Along the same line of thinking, 42 percent of respondents indicated that another substantial pain point with technology was the service and maintenance of equipment and software.
The survey prompted participants for their thoughts about two hyped technologies: artificial intelligence (AI) and automation. At their best, adoption of these tools can make laboratory processes more efficient and uncover critical patterns in test results. At worst, they simply cover up bad workflows.
Credit: Lab Manager
Of respondents, 46 percent indicated that automation was a top opportunity for labs, and 38 percent said the same for AI.
General opinions of AI seem positive across the industry, as 86 percent of survey takers said the technology would speed up research methodologies either a little bit or significantly. By contrast, only 5 percent believed AI would lead to no significant changes.
That being noted, some respondents pointed out that AI may be vaunted too aggressively. “AI is overhyped, and people don’t take the time to understand where it can help with research, advocacy, and streamlining processes,” wrote one reader. “People also don’t understand how limited it can be. It doesn’t replace a person.”
Automation received a more mixed reaction in the survey compared to AI. Asked how much their laboratories incorporated automation into workflows, respondents answered the following:
- Select activities of the lab only—42 percent
- Poorly or not at all—23 percent
- Active integration involving all parts of the lab—19 percent
As Lab Manager previously reported, labs can’t simply swap out manual processes for automation.4 Rather, evaluation must include determining whether a workflow is effective to begin with and the best way to integrate automation based on the viewpoints of end users.
Credit: Lab Manager
Innovation thrives in labs, even with less
It’s interesting to note that innovative research—which one might consider a hallmark of the overall lab industry—is not widely seen as a challenge. This result likely indicates that lab managers are happy with the progress of innovation at their sites.
That said, six out of 10 respondents also believed they needed to “do more with less” when it comes to their research and work priorities. The implication here is less budget or fewer staff, which brings the survey full circle back to the top challenges facing labs.
Going into 2025, readers should take away two key points from Lab Manager’s survey results:
- If an executive or superior scoffs at the idea of a lab’s budget being a challenge, the poll’s results can help illustrate a broader trend occurring in the industry.
- AI and automation garner significant interest from peers, suggesting that these technologies hold promise for labs that adopt them.
Savvy lab leaders may want to approach any automation or AI project with an eye towards how it could offset budget obstacles.
References
1. https://www.clinicallab.com/fight-inflation-by-improving-your-lab-s-margins-27392
