As the manufacturing sector moves another year further from Covid-19‚ the industry still feels the knock-on effects of the pandemic. And‚ while manufacturing hasn’t publicly suffered as much as industries like travel and retail‚ it has had its fair share of challenges.
As a result‚ 2022 became the year of digital transformation in the manufacturing sector. We saw companies invest in new digital technologies‚ apps and processes to streamline their operational efficiency.
Moving into 2023‚ the entire manufacturing industry moves towards using advanced technologies to address a number of business challenges. Resiliency‚ efficiency and connectivity are all themes that highlight the industry’s direction.
In this blog‚ we will explore the following:
- The challenges that manufacturing faced in 2022 and could see in the coming year
- The new products and services dominating the industry
- How technology can optimise the future of manufacturing.
Manufacturing industry landscape and initiatives
The past year saw manufacturing operations tested to their limits. Supply chain challenges‚ rising costs and labour shortages led to organisations finding new ways to run their day-to-day operations.
Technology helped address many of the difficulties. Digital transformation began to hit the headlines as manufacturers focussed on using technology to gain more control and visibility over their processes.
Above all‚ we saw the clear need for a more innovative and connected manufacturing ecosystem. So‚ how can manufacturing technology improve the industry further as we move into 2023 and beyond?
Manufacturing trends in 2023
Increasing impact of the internet of things (IoT)
The first manufacturing trend on our list is the increased use of IoT. Specifically‚ industrial IoT (IIoT) will have more use cases as manufacturing plants become even more connected and intelligent.
Within an IIoT system‚ organisations use sensors and other connected devices to collect vast amounts of real-time data. Using this information‚ they can stay ahead of the curve to improve efficiency across the board.
IIoT will grow to lead manufacturing into Industry 4.0. Instead of individual cogs making up the manufacturing machine‚ we will see an entirely connected process – helping companies make more informed decisions faster than ever before.
We will also see IIoT helping workers on the ground. More connected devices will help track the movement of goods‚ with engineers able to follow many metrics throughout the manufacturing process. To manage the increased data flow‚ we will also see factories use 5G and private networks to transmit their key information.
Accelerated impact of digital transformation
Next on our list‚ we will continue to see the massive impact of ongoing digital transformation. In 2022‚ many companies were forced to embrace digital transformation to address pricing‚ supply chain and legacy software issues.
Now we’ve seen the results of digital transformation‚ there’s no turning back. In 2023‚ we will see companies push further towards Industry 4.0. Specifically‚ we will see the following technologies lead the way:
- IIoT
- Machine learning and artificial intelligence (AI)
- 3D printing
- Advanced predictive analytics.
Each of these can have a significant impact on manufacturing business models. For example‚ we’ve already seen over 60 per cent of manufacturing companies report cost savings thanks to decision-making grounded in data analytics.
Inflation and supply chain security
Rising costs and supply chain challenges dominated the news in 2022. Those factors will continue into next year‚ with many manufacturing companies considering actions like reshoring and supply chain digital transformation.
To address rising costs‚ the manufacturing process must become more efficient than ever – reducing waste and downtime. We’ve already seen how IIoT and predictive analytics can help improve the process‚ with further challenges to come.
One such challenge is supply chain security. With a more connected and integrated environment comes more potential for cybersecurity incidents. In fact‚ half of manufacturers list cybersecurity as one of their most substantial concerns in the future.
As more and more cybercriminals aim attacks at the supply chain‚ manufacturers must build in security by design. By investing in robust and secure new technologies‚ manufacturers can increase productivity while keeping key resources safe from attack.
Sustainability and corporate social responsibility (CSR)
Our next manufacturing trend in 2023 is an ongoing concern: sustainability. Around 20 per cent of the world’s emissions come from the manufacturing sector‚ highlighting the potential impact of green initiatives.
And‚ while many companies must abide by environmental rules and regulations‚ we will continue to see more CSR efforts in the coming years. In some cases‚ this requires new technologies and operational improvements.
In 2023‚ we expect to see more manufacturing companies using digital transformation to move towards key carbon neutrality and green targets. This will likewise help those companies by reducing waste‚ improving public relations‚ and introducing advanced technologies.
Enterprise resource planning (ERP) and predictive modelling
Downtime is a critical manufacturing concern. The average manufacturer sees around 800 hours lost to downtime per year – due to equipment failure‚ maintenance and their knock-on effects. For some companies‚ that downtime can cost up to half a million dollars per hour.
The manufacturing industry will continue to introduce new technologies that help minimise downtime. That doesn’t necessarily mean reacting quicker when new issues occur – but preventing them from happening altogether.
To do this‚ companies will use IIoT‚ connected smart devices and more integrated systems. This will help create intelligent ERP systems‚ allowing teams to run predictive maintenance models that help fix potential issues before they happen.
Digital transformation in manufacturing has also created the possibility of running simulations to improve decision-making. Known as digital twinning‚ the intelligent‚ connected factory generates enough data to create a virtual version of critical tools. This lets teams run tests against the virtual resources before deploying‚ improving the first-time success rate of new technologies.
Summary
The manufacturing sector has relied on digital transformation to weather the supply chain‚ labour shortage and inflation storm. In 2023‚ that trend will continue as we move towards even smarter factories.
IIoT‚ automation and predictive maintenance will all help improve performance‚ while technologies like smart devices and digital twinning will lead to even more substantial advancements.
At hedgehog lab‚ we have extensive experience helping manufacturing companies take advantage of digital transformation. With our manufacturing technology services‚ you can optimise your current processes or open up innovative new possibilities. Head to our insights area to learn more‚ or get in touch today.
