Articles
To maintain this growth, trends such as leveraging digital technologies, adopting strategies for the future of work, and driving supply-chain resiliency should be put in place. However, according to Deloitte: “While overall demand and production capacity have hit recent highs, there are indications that the near-term outlook may not be as bright.” The company cites concerns related to inflation and the economy as well as challenges with attracting and retaining staff.
A poll of more than 200 decision-makers at global manufacturing companies, conducted by Fictiv – a provider of operating systems for custom manufacturing – found that 68% listed improved resilience and agility as a top business priority in the coming years.
Avoiding risk
Investing in advanced technologies can help mitigate risk. Manufacturers have increased their digital investment in recent years and accelerated the adoption of emerging technologies. Companies with higher digital maturity have shown greater resilience, as did those that accelerated digitalisation during the pandemic. Continued investments in advanced manufacturing technologies can help develop the required agility.
The Industrial Internet of Things (IIoT) has enabled manufacturers to make informed, strategic decisions using realtime data and achieve a variety of goals, including cost reduction, enhanced efficiency, improved safety, product innovation, and more.
According to Martin Boggess, vice-president of manufacturing and field service at Hitachi Solutions, IIoT will remain a leading trend for 2023.
Boggess said: “Given recent projections, which claim that the IoT in the manufacturing market will reach up to $399.08bn in value by 2026 at a compound annual growth rate of 14.5%, it’s clear that manufacturers’ investment in IoT will only increase in 2023 and beyond.”
With the increase in IIoT and Industry 4.0 technologies, such as connected devices, will come an explosion in the amount of data generated by businesses. Enterprises with advanced IIoT set-ups can generate as much as 70 terabytes of data per day from a single assembly line. The need to transmit such large volumes of data is also fuelling the growth of 5G.
With speeds significantly faster than wi-fi or 4G (up to 10Gbps), near-zero latency, and wireless connectivity, 5G brings an unprecedented degree of flexibility to high-speed manufacturing, with the potential to connect almost any sensor or device.
A recent forecast by consulting firm McKinsey projects a minimum of 22 million 5G units in the manufacturing sector by 2030. Another study by Capgemini states that the addition of 5G to manufacturing businesses could unlock $605bn of revenue.
Labour challenges
Addressing the tight labour market and workforce churn is expected to remain a top priority for most manufacturers.
Despite a record level of new hires, job openings in the industry are still at near all-time highs. Additionally, voluntary separations continue to outnumber layoffs and discharges, indicating significant workforce churn. To overcome this hurdle, manufacturers will need to offer competitive pay and benefits, and create the kind of workplace environment that aligns with candidates’ expectations.
While things may not look particularly rosy in the short term, if these trends are adopted, 2023 could be a year of innovation in which manufacturers pursue growth strategies.
Want the best engineering stories delivered straight to your inbox? The Professional Engineering newsletter gives you vital updates on the most cutting-edge engineering and exciting new job opportunities. To sign up, click here.
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.