If there is anything that the challenges, problems, and disruption of recent years have taught us, it’s that the status quo is unsustainable. Change is happening to manufacturing, whether we want it or not.
Today, manufacturers are grappling with supply chain challenges that would have been unimaginable a few years ago. Who would have speculated on a global pandemic causing havoc with both international shipping and labor resources? No one could have seen the impact of late shipments and backorders having as much of an effect on reshoring as trade wars and regulations.
The question for CEOs and leaders in manufacturing is how to mitigate the risk and capitalize on the opportunity when change happens. What strategies will deliver the best ROI? What risks should the business prepare for? How can the business best be protected against unwanted change?
It pays to look to the future and to analyze the trends and technology that are shaping the industry.
Considering the recent challenges and issues facing manufacturing, many companies have already begun to adjust their strategies and are seeing positive results. Other companies continue to wait, leaving their business at risk.
Here are the trends we see shaping manufacturing and production technology in 2022.
Supply Chain Consistency and Security
Supply chain challenges continue to pressure manufacturers to adapt. While many point to specific issues as the root cause of the problems, the longstanding instability and weakness in the global supply chain have been revealed. For years, companies have relied on low inventory and low-cost suppliers to reduce costs, while gutting domestic suppliers and pushing manufacturers to offshore. The result has exacerbated the issues we see today.
Now, manufacturers are prioritizing consistency, diversity, and strength over cost in evaluating suppliers. That strategy requires a coordinated approach with data and production technology. In addition to evaluating suppliers and inventory, manufacturers will need to better manage their own inventory and plan for longer lead times for material shipments. Managing that requires more production insight and information than can be managed on a spreadsheet or an ERP. This will require better production data visibility and more accurate production scheduling and planning.
The Workforce Shortage
Unfilled manufacturing jobs, especially those for skilled workers, will limit growth, revenue, and productivity. This workforce shortage is already having a negative impact on the industry. Rather than hoping for an influx of skilled workers hungry for a job, the industry needs to take action to retain and better support workers. Manufacturers need to be proactive to attract new workers, reskill existing workers, and provide more productivity-enhancing tools and systems to increase efficiency.
Solving the workforce shortage will also require a multi-channel approach. In addition to reaching out to trade schools and graduates, resources will need to be put in place to capture, record, and disseminate critical information that was once siloed or kept by a single employee. Processes must be adopted that support employees, reduce variation, and capture and support best practices so that employees are relying on the process, rather than experience, as they work.
Digital Production and the Smart Factory
For many years, manufacturers have been tentative to embrace software to solve their issues. For some, it's the pace of change that's scary; others worry about the ability of software vendors to deliver the tools and results they promise. In production, there's the added pressure of sticking with the current path if you're making it work now.
Today, technology has reached a point where it is both affordable and reliable, and the challenges related to COVID continue to push manufacturers to adopt software to aid in production. The technology has matured and can deliver measurable results once implemented, with an ROI that makes sure the investment pays for itself. Smaller manufacturers are embracing digital tools, often first to directly address specific production problems, and then rolling it out to the entire plant. We expect this to continue, with manufacturing companies implementing MES and lower-risk automation.
Data-Driven Manufacturing Solutions
Closely connected to the continued adoption of smart factory tools, manufacturers are also looking at data-driven solutions for increasing productivity and reducing costs. Predictive maintenance, for example, is an easy step for reluctant manufacturers to tentatively leverage smart manufacturing. Sensors, tracking, and monitoring systems are less expensive, more capable, and more commonplace and can provide critical data to maintenance teams to help reduce unplanned downtime or repairs.
The adoption of data-driven solutions will continue as manufacturers look for and find more effective ways to collect, manage, and use data. With this effort, manufacturers will also need to implement process controls and better communication tools to ensure the team members who need the information have it. We expect that many companies will expand additional digital tools to accommodate their data-driven goals and smart factory initiatives.
Automation and Workforce Shifts
Companies are investing in automation with good reason. Automation isn’t new, but as the cost of technology lowers and labor availability is reduced, automation provides a solution. Companies are turning to automation, sensors, and even robotics to complete work and fill gaps in the workforce.
When implemented successfully, automation can handle low-priority tasks at a much lower cost while reducing errors and mistakes. It can free up your workforce for higher-priority work. That said, as automation use is adopted, it does require the support of skilled employees. The existing workforce will need upskilling, so that frontline workers can be moved to higher-priority tasks.
Sustainability and Net-Neutral Carbon
Recognizing the need for sustainability and the advantages of reducing waste and energy consumption has led many businesses to increase investment in green work practices and carbon neutrality. This aligns with the ESG (Environmental, Social, and Governance) strategies that many businesses have come to embrace. It also aids in meeting the shifting local and national regulations and customer requirements.
In addition to identifying where and how waste is generated, and how material and energy consumption can be reduced, manufacturers are also looking at operations and manufacturing processes. Waste in production, additional paper packets and paper waste, and shifting in-person activities to online or remote work, are all ways that manufacturers can increase sustainability and will, in the end, further increase their adoption of digital manufacturing.
While manufacturing is often slow to evolve, the current challenges and wealth of opportunities have drastically increased the pace of change. Companies and manufacturing leaders are ready to improve their processes and adopt new solutions. The cost, availability of technology and systems, and ease of implementation have reached a point where it is accessible not only for enterprise manufacturers but small and mid-sized companies as well.
If you are a manufacturer, there has never been a better time to explore new solutions and tools. To learn more, contact CIMx Software and talk to one of our engineers about the challenges facing your business, and the available opportunities to increase production, eliminate problems, and boost profitability.
Contact CIMx Software to see how paperless manufacturing can help you meet the demands of 2022.