By: Virginia Shram | March 27, 2024
It’s important to stay up to date with the latest trends and proven returns in manufacturing. Here are 5 recent trends and predictions for the industry that you don’t want to miss out on.
By: Virginia Shram | March 27, 2024
Both manufacturing technology and production processes are continually evolving. In today’s world of lean manufacturing practices that rely on continuous improvement, it’s important to stay up to date with the latest trends and proven returns. Here are 5 recent trends and predictions for the industry that you don’t want to miss out on.
With the average baby boomer retirement age looming on the horizon, manufacturers are justifiably concerned about maintaining the knowledge of their aging workforces. There are just too many positions that need to be filled with not enough workers signing up to fill those spots.
Many fear that automation will replace the need for much of the manufacturing workforce, but that has not yet proven to be the case. While AI technology is promising, it’s still just that – promising. Very few factories have successfully sidestepped labor shortage issues by introducing robotics, if it’s even viable at all in the long-term.
Companies should be aware that in order to attract experts in the trades, they need to be offering top wages within the industry standard. Skilled electricians, plumbers, and HVAC technicians are incredibly valuable assets and will be highly sought after, so make sure to attract them with adequate compensation and inclusion to company culture.
IT specialists will always remain critical to operations support. If and when things go wrong, you don’t want to rely on an outsourced help desk that’s not intimately familiar with the specifics of your digital ecosystem.
Digital power users and IT support workers will be needed to maintain IIoT networks, spearhead integrations, and introduce new technologies on the shop floor.
Parsable’s report State of Digital and Connected Work on the Manufacturing Front Lines suggests, “It’s critical to measure and highlight the value of mobile-based software and digital tools for frontline workers early on, but also have a plan to roll out your program to additional sites and use cases. Bring in your software partner’s customer success and implementation teams for support and direction.”
These types of IT workers are perfect candidates for team leads, as they can translate specifics of digital transformation between the frontlines and the C-suite.
We mentioned that workers in the skilled trades will be highly sought after. At the same time, the skillset of the average new frontline hire will be lower than in the decades before. This is because general labor shortages will push manufacturers to hire new workers without decades of experience.
In other words, competitive manufacturing companies won’t wait for government subsidized training programs to fill the labor gap – they will hire from outside of manufacturing and simply provide training themselves in real-time on the job.
While this lower threshold for entering the manufacturing industry may pose an initial challenge, it’s easily combated with innovations in digital platforms designed for quick onboarding and knowledge transfer.
Companies will address this skills gap by introducing digital communication tools like visual work instructions, video instruction, automated reporting and quality checks, and real-time shop floor assistance.
Perhaps most importantly, just because new hires may not be as familiar with standard assembly protocols doesn’t mean they don’t have valuable insight into process optimization.
From the World Economic Forum’s Views From The Manufacturing Front Line report: “Workers highlighted engaging opportunities to use installed technologies more fully and creatively. Such technologies need not be confined to the uses for which they were originally designed or acquired. Indeed, in almost every interview, participants shared potential new use cases for implemented technologies, thoughts about new systems that could be applied, or additional ideas for improvement.”
Take advantage of your workforce’s growing diversity by supporting two-way communication and frequent feedback – it’s to both of your advantages.
We’ve previously written about how the “focused factory” is the kingpin of mass production; focused manufacturing leaders stay competitive by producing limited product lines at high volume (also known as LMHV).
This type of production will still exist, but most factories will follow the opposite path, and become more flexible in more ways than one. This is partly due to their size in comparison to competitors.
Product line flexibility will increase as spending decreases in recessions and consumers save up for quality products that last a lifetime out of necessity.
Factories will also need to become more flexible when it comes to supporting their workers on the frontline. This includes offering staggered shifts to support young parents and unconventional opportunities for career advancement to fill gaps in expertise. Digital tools will support the existence of remote workers without compromising on-site efficiency, since analytics are available in real-time regardless of location.
Global inflation has cut away at manufacturing profits, and supply chain difficulties have weakened access to dependable materials and services.
To save money in these tough times, many factories have done away with what can be easily outsourced to the cloud: things like dedicated server rooms, on-site networks, and digital inventory and legacy data.
Simply put, it’s both cheaper and easier to employ cloud services than ever before. Manufacturers already undergoing workplace transformations are seeing the benefits of embedding digital technology into their workflows.
Cloud computing and its various software applications like VKS are modular and scalable, giving executives wiggle room for changing budgets in difficult times.
There’s lots to be excited about when it comes to the manufacturing industry in the near future. Despite growing challenges, industrial leaders will find innovative solutions to maintain productivity and competition in this ever-evolving global landscape.