We’re in the final weeks of 2023, and it only seems right to look at the industries you are all part of and see what’s in store as we venture into 2024.
Let’s look at the manufacturing industry. With ongoing shortages of skilled labour, some lingering and targeted supply chain disruptions, and newer challenges created by the need for product innovation to meet company-set net-zero emissions goals, 2024 will be the year to scale up production through decarbonisation and electrification, improve competitiveness through digital transformation and navigate talent obstacles.
Whilst tackling the above, manufacturers looking for investment may struggle to secure it without embracing a smart factory approach where possible. Technology is going to play an important role in supporting manufacturers in taking on the challenges that may arise in 2024.
Tackling talent obstacles requires a highly proactive approach, with flexibility at the forefront – things like flexible scheduling to production workers, remote work where viable, and opportunities to swap or split shifts. In addition to that, rewarding workers is paramount, and adapting workforce policies to further improve talent attraction and retention will help build momentum – upskilling your existing talent and taking time to better prepare for current and future job roles can help build clear career pathways. Fostering partnerships with local communities can improve attraction as well, so taking time to speak to local colleges and universities can help new talent to filter through.
Looking at opportunities, enhanced aftermarket services can create consistent revenue flows and offer 2.5 times greater operating margins than new equipment sales. Expanding into aftermarket services can even strengthen customer loyalty and boost your brand power.
The industrial metaverse and Industry 4.0
The ‘Industrial Metaverse’ is a topic we need to touch on. As mentioned earlier, the smart factory approach through the industry’s journey toward industry 4.0 is in full swing. Large players are already leveraging digital technologies (both in and out of the factory), and this is set to transform the way products are made.
So, what is a smart factory? Well, a smart factory integrates advanced technologies such as AI, 5G, IoT, data analytics, and cloud computing on the production floor. These technologies promote agility, resilience, and efficiency in operations. It sounds like an overhaul, and it is. However, the potential benefits are vast – gains in asset efficiency, labour productivity is increased, product quality is increased as well as substantial cost reductions.
How to get there…
Few organisations have the luxury of a clean slate start-up and even fewer have the luxury of unlimited capital to exploit a new idea. But there are some common traits seen consistently within successful Industry 4.0-focused businesses:
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Clear, meaningful strategy: A clear strategy that is relevant to all functions and people in the organisation. End-to-end investment plans to ensure all aspects of the supply chain are synchronised in their capture and use of common data (single point of truth).
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Embracing continuous learning and common values: A united workforce with inquisitive minds, open to new ways of working, accepting of technology and empowered to suggest and make changes. Continuous improvement methodology is embedded across the enterprise and not just a sporadic manufacturing-only activity.
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Research and development: A systematic way for collecting and using information about future developments. Not just in product/service design, but across the supply chain and back-office functions, too. The knowledge does not necessarily need to be created in-house, but it needs to be readily available and accessible.
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Awareness of surroundings: Activities are driven by evidence-based knowledge and consideration of changes in the global ecosystem, suppliers, competitors, and customer expectations. Education is often provided to both suppliers and customers. This enhances long-term relationships and helps manage expectations.
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Agile technology: Connected systems that are secure, but able to adapt at minimum cost to the needs of customers and new functionality, e.g., AI, block chain, digital twins. The technology solution provides real time controls via the blended use of ‘Edge’ and ‘Cloud’, combining the best of in-house systems and outsourced solutions.
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Capital equipment and future proofing: Where possible, manufacturing equipment is configurable and can be developed and modified at minimum cost. Early decisions around in-house or outsourced manufacture to maximise agility and logistics. This allows focus to be maintained on areas of differentiation.
And finally, we hope these insights help our manufacturing customers, and anyone else reading, and we want to wish everyone the best for 2024 – we’re on hand if you need anything - Have a wonderful Holiday Period – From Everyone at Innov8!