5 Change Areas Manufacturers Should Consider When Pursuing Tech Solutions

True digital transformation means democratizing automation, meaning that manufacturers can seamlessly shift from deployment to scalability, which will allow for broader adoption of new technologies throughout the industry. There’s a shift in the traditional mindset occurring, paired with new, innovative technologies – which is breaking down limitations and opening new opportunities for manufacturers and their workforce, explains Paolo Avagliano, VP of Delivery and Customer Success at Bright Machines.

Today, manufacturers are looking at every process and protocol that once made factories run efficiently to understand if they are still providing value. While accelerated by the pandemic, we have reached this critical point largely because of Industry 4.0 technology that is making it possible to change how production is done. Just as other sectors are evolving, the manufacturing industry, which has typically been slower to adopt new technology, is now demanding flexible solutions that will better equip them to navigate consumers’ buying patterns, build supply chain resiliency, and outpace their competition. 

So, why now? Why is it that manufacturers are more willing to make the shift to modern solutions? 

First, the benefits and value of real-time insights and flexible production are more apparent than ever. With advanced solutions, manufacturers across sectors are seeing ‘30 to 50% reductions in machine downtime, 10 to 30% increases in throughput, 15 to 30% improvements in labor productivity, and 85% more accurate forecasting’, according to McKinseyOpens a new window . Automation solutions that once touted the benefits of robotics pre-integrated with machine learning and computer vision are also no longer hard to obtain or difficult to deploy, with the smart manufacturing market expected to grow to reach $446.24 billion by 2029Opens a new window , according to Meticulous Research. 

Modern technology improves production within the walls of the factory. Simultaneously, today’s applications, having reached a heightened state of maturity, are enabling manufacturers to better adapt to external factors as the industry itself transforms.

See More: Automation and AI Are Key for Manufacturers’ Go-To-Market Strategy

5 Key Areas of Change 

The COVID-19 pandemic taught every person and every business that they need to be better prepared for the unpredictable. Over the last two years, we have seen disruption after disruption impact the market and influence the way we work and the way we live. That change is not slowing down any time soon. 

Here are five key areas of change that are top of mind for manufacturers (or should be) as they consider adopting modern, intelligent solutions:

1. 1. Supply chain disruptions: The pandemic, trade wars, and other global disruptions have made leaders everywhere rethink their global operations. In a 2020 McKinsey survey, just over three-quarters of respondents said they planned to improve resilience through physical changes to their supply-chain footprints. One year later, the surveyOpens a new window showed that an overwhelming majority (92%) said they had done so. The survey revealed significant shifts in footprint strategy; companies were much more likely than expected to increase inventories and much less likely to diversify supply bases. 
   2. Reshoring and near-shoring: Ongoing supply chain issues have led to an increasing desire to reshore or near-shore production to avoid the pitfalls of a global supply chain, including extended delays and skyrocketing freight costs. Almost 90% of respondents in the McKinsey survey mentioned above said they expect to pursue some degree of regionalization during the next three years. We are already seeing big players make moves. It was reportedOpens a new window that General Motors is considering spending nearly $4 billion to expand electric vehicle and battery production in Michigan, while Toyota announced plans for a $1.3 billion battery plant in North Carolina that will employ 1,750 people.
   3. Labor shortages: It is no surprise that the industrial sector has been facing a labor crisis for years now. Not just finding talent to fill open positions but also finding the right talent with the skill sets needed to seamlessly manage new technologies. Deloitte Insights indicatedOpens a new window that manufacturers find it 36% more difficult to find talent today than in 2018, even though the unemployment rate is much higher than in the recent past. To this, executives are embracing the idea of reskilling their current employees. According to a McKinsey surveyOpens a new window , ‘two-thirds of respondents think that corporations should take the lead in the development of the new skills required for the digital era, and 80% say at least half of all new roles should be filled by reskilling existing workers.’
   4. Sustainability pressures: There is global pressure to introduce more sustainable practices across all industries, and manufacturing is no exception. Leaders are increasingly adopting greener processes and energy alternatives for various reasons, including increasing competitiveness, attracting new customers, strengthening their brand, and much more. Digital solutions such as 3D printing and virtual twins, for example, are making it possible to create simulations to measure and assess the areas of production that can be improved, whether right-sizing the use of materials or reducing waste. 
   5. Shifts in the B2B model: With these changes, the B2B model itself is experiencing a shift. The traditional manufacturing model included a supplier, a system integrator, and the end customer, who all played a unique role. What we are seeing now, as intelligent solutions are becoming easier to access, deploy, design, and maintain, is that these different players, namely end customers, can now build and manage their systems. 

True Transformation Means Democratizing Automation 

These critical areas of change are not just trends we will see come and go. They are changing the fundamentals of manufacturing and contributing to a generational shift that the industry will experience for years to come, made possible in part with modern manufacturing solutions, such as intelligent automation. 

When manufacturers take that next step forward — when they shift from deploying new technologies to scaling intelligent solutions across all factories, we will see the industry evolve for the betterment of the business and the market. And as the labor relationship between humans and machines evolves, so does the set of skills required. Simple technology that is easy to use will be critical to retaining and empowering this next-generation workforce. Bringing these two things together will help drive the democratization of automation throughout the industry, creating an environment for skilled talent to drive innovation forward. 

This era we are in, where there is a shift in the traditional mindset occurring, paired with new, innovative technologies, is breaking down limitations and opening new opportunities for manufacturers and their workforce. If you are in manufacturing, it is something to get excited about; you can be part of the change to help shape the industry’s future.

What trends do you see in the manufacturing industry? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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