This article is the third of a five-part series that, in the next two weeks, will call on subject matter experts to look ahead to digital transformation and manufacturing trends in 2024.
Also next month, please watch for Smart Industry's annual Crystal Ball Report, available to members as a downloadable e-handbook, from a larger group of experts who also forecast "smart" manufacturing milestones in the new year.
With the signing of the Infrastructure Investment and Jobs Act and the CHIPS Act in 2021 and 2022, U.S. manufacturers have crept back towards normalcy. As of July, private companies have spent $201 billion to onshore manufacturing operations back to North America, making strides in production.
In 2024, manufacturers must aim to continue this momentum and embrace a sense of urgency to get ahead of the game—and the competition.
See also: The Crystal Ball Report 2024: A preview podcast
With potential economic and political headwinds in the upcoming year, ongoing supply chain and material challenges, and demands to meet new sustainability goals, an aggressive approach to transforming manufacturing operations is called for. To win this coming year, manufacturers need to prioritize digital transformation, invest in talent, and beat supply chain disruptions.
Create smarter factories with digital technologies
Economic uncertainty, a tight labor market, rising costs, and supply chain stressors underlie the importance of improving agility, resilience, and efficiency. These steps benefit productivity and a manufacturer’s bottom line. Getting on the journey towards Industry 4.0 is needed now more than ever. A total of 83% of manufacturers believe that smart factory solutions will transform the way products are made in the next five years.
Integrated technologies such as artificial intelligence (AI), 5G, Internet of Things (IoT), and cloud computing can offer great benefits to manufacturers by providing real-time analytics, total visibility, and scalable solutions like enterprise asset management for new and existing factories.
Improve talent attraction and retention
While manufacturers put more dollars into technology investment, it’s also critical to invest in their people. With much of the manufacturing workforce retiring, companies need to create an ample talent pipeline and recruiting process that attracts new talent.
According to a survey by the National Association of Manufacturers, more than 59% of respondents said that not having enough employees will impact their ability to make investments or expand.
See also: How manufacturers can cut complexity with integration technology
Manufacturers must meet the needs of today’s employees. To do so, they should take advantage of retirees’ knowledge by creating mentorship programs between industry veterans and fresh talent. Manufacturers should also inspire young talent through high school and university partnerships.
With the industry more tech-forward than ever, it's an exciting time for young people to join the manufacturing industry. Offering in-depth training programs, digital tools to streamline tasks, and fostering a more flexible work environment is key to attracting younger workers and getting through the ongoing talent crisis.
Avoid supply chain disruptions by reshoring
Manufacturers learned that long overseas supply chains can be fragile. That’s why manufacturing construction spending surged more than 80% over the past year to build new factories in the U.S. For North American manufacturers who have yet to establish roots back home, now is the time to do so. Reshoring even a few specific elements of a company’s manufacturing process can remove much of the uncertainty that comes with global supply chains.
Reducing delays can be a difficult task to plan for, however, with the right solutions in place, companies can take preventative measures to ensure resilient factory and supply chain operations. Reshoring efforts also are drastically helping revive North American manufacturing hubs with more jobs and economic impact. In Ohio alone, manufacturing output has gone from $81.6 billion in 2019 to 114.8 billion by the end of 2021. It’s time to keep growing these numbers throughout North America.
In 2024, progress is a must
Despite having significant growth in the last two years, there’s so much manufacturing transformation on the horizon. Embracing this goal of transformation will require visionary leadership and a proactive mindset. While pushing towards this transformation does require several resources, adopting this forward-thinking approach can position manufacturers as industry leaders and help shape the future of the industry by setting a new gold standard of operations.
See also: Q&A: Getting help: Why Seeq and other tech providers leverage so many partnerships
Manufacturing leaders who embrace these changes will show their strengths in resilience, efficiency, and modernization. From a revived and newly invested workforce to the diversification of manufacturing hubs, and the promise of increasing optimization and efficiency with emerging technologies—2024 will continue to be another critical year for manufacturers’ success.
