11 Latest Trends That Will Dominate Manufacturing in 2022
Much was said about Industry4.0, and also how it has revolutionized the manufacturing world by providing manufacturers with opportunities to use innovative tools and technologies across the product lifecycle. There is no doubt that Industry 4.0 has allowed manufacturers to increase operational visibility, reduce costs, expedite production times, and deliver outstanding customer care.
But as 2022 quickly approaches, it is time to turn away our attention from Industry 4.0 and toward Industry5.0. Where the fourth industrial revolution centered on utilizing technology to maximize the way of production, the fifth is about linking machine and man — which is, cooperation between people and intelligent systems. Based on who you ask, Industry 5.0 is on the immediate horizon, also it is currently here, it is coming hastened by the start of the COVID-19 pandemic.
Regardless of which standpoint you sign up to, there can be no doubt that manufacturers need to continue to embrace change to be able to remain ahead of opponents and acquire market share within an off-beat industry. People who would like to not only survive but flourish, have to leverage the latest technology and trends.
Employee Safety Becomes a Top Priority
It goes without saying that worker safety is a — if not that the — major trend for manufacturers heading right into 2022. Workplace security has, of course, always been a priority for manufacturers, but it takes on new importance in light of this outbreak.
Besides basic security measures, like enforcing social bookmarking steps on the manufacturing floor and ensuring workers sanitize their workspace, manufacturers need to carefully and attentively track who enters and leaves their centers, and the individuals or gear they socialize with. It has led many manufacturers to in-source facilities management and maintenance and put increased focus on traceability, which requires Manufacturers to recover internal gear information from OEMs.
This renewed focus on worker security even extends up to area support; to be able to minimize contact, technicians need to be prepared for every task so that they can quickly finish open job orders. It would not be surprising if there had been a remarkable increase in manufacturers’ first-time repair rates because of this.
In addition, we forecast that this trend is going to have an immediate impact on supply chain visibility, as manufacturers need greater transparency from providers since they work to monitor claims and issues during the manufacturing procedure.
IoT is (Still) THE Big Thing
Although the Internet of Things (IoT) is becoming a more prevalent, prevalent technology in the manufacturing industry, it stays on the very top of tendencies calendar year after year due to its adaptability and invention — and this season is no exception.
IoT, which involves the interconnection of special devices inside a present internet infrastructure, has enabled manufacturers to make informed, strategic decisions employing real-time information and accomplish a vast array of goals, such as cost reduction, improved efficiency, improved security, product creation, and much more.
According to a study by the MPI Group, almost a third (31 percent ) of manufacturing procedures now incorporate smart devices and embedded brains. Additionally, 34 percent of manufacturers have plans to integrate IoT technology in their procedures, while 32% plan to incorporate IoT technologies in their products.
“IoT and predictive analytics have a big effect on manufacturing, providing exciting opportunities for linking operations and altering business processes,” explained Michael Strand, Senior Vice President in Hitachi Solutions America. “Innovation is driving company development, and technologies are allowing Manufacturers to evolve having the increasingly digital-first business landscape”
COVID-19 has attracted renewed attention to IoT technology because of its remote monitoring and predictive maintenance capacities. From a public safety standpoint, it is impractical, if not impossible, for field service technicians to appear on job websites on a minute’s notice; each work order needs to be meticulously planned well beforehand.
IoT-enabled apparatus makes it possible for Manufacturers to securely track equipment performance in space and identify possible problems in front of a malfunction even happens; they also enable technicians to acquire a comprehensive comprehension of the issue at hand and think of potential solutions until they arrive at the job site so that they could get in and get out that much quicker.
Also read: How to Select Right Sensor for IoT Device
Predictive Maintenance Keeps Production on Track
Talking of predictive maintenance, a breakdown in crucial equipment is expensive to Manufacturers concerning downtime, repairs, and loss of productivity. A whopping 98 percent of associations report a single hour of downtime costs them over $100,000.
For that reason, it’s vitally important for Manufacturers to make certain that all equipment operates at optimum performance levels — and most are turning into predictive analytics and predictive care to achieve that.
Predictive maintenance is demonstrated to reduce unplanned outages and also to extend machinery life through years. Predictive analytics empowers manufacturers to track equipment performance utilizing any range of performance metrics and also to automate the data collection procedure utilizing IoT technology.
This insight provides Manufacturers with a better knowledge of how systems operate and if they’ll fail, allowing them to administer predictive care and save precious time, money, and tools in the procedure. You may even run tracking evaluations while equipment is in operation, so there is no lack of production because of equipment shutdown.
Shifting Focus from B2B to B2C
In the last few decades, many manufacturers have chosen to transition from a conventional business-to-business (B2B) version to some business-to-consumer (B2C) version. The B2C version boasts several attractive advantages, such as:
- Increased Profits: providers can find the complete manufacturers suggested retail price (MSRP) as opposed to wholesale prices for their merchandise.
- Faster Time to Market: as opposed to contending with the long-term conventional retail sales cycle which needs one to lock in product growth much ahead of delivery and order, Manufacturers can quickly prototype, evaluate, and drive products to promote, giving them a distinct competitive edge.
- Brand Control: B2C removes the probability of a producer’s brand being misrepresented by third parties.
- Price Control: Manufacturers have the opportunity to Fortify their MSRP.
Better Customer Data: Selling directly to customers empowers manufacturers to collect customer information that may ultimately lead to improved products, more powerful relationships, and improved earnings.
To effectively market directly to customers you will have to decide on a platform for your eCommerce operations that supports both your B2B and B2C sales platforms. It might need to provide on order fulfillment and monitoring, secure payments, customer support management, and sales and marketing action monitoring when supplying a 360° view of your B2B and B2C client connections.
Manufacturers Plan Their COVID-19 Exit Strategy
The unfortunate fact of COVID-19 is that particular products and the companies which manufacture them will vanish from the market, to not return. Those manufacturers who do manage to live will probably have experienced their approach slate wiped clean, which means there is no time like the present to begin planning a pandemic exit approach. Gartner divides its post-pandemic planning frame into three stages, referred to jointly as”The Reset”:
- Phase 1, Respond: Immediate Action required to Help Keep Individuals Secure and Crucial business functions Functioning
- Phase 2, Recover: Restart Tasks: reopen, rehire, rebudget, resupply; Produce a Strategy to Reestablish scalable Country
- Phase 3, RenewStrategic, Lasting execution Throughout the Business; Utilize learnings and Emerging patterns from Previous phases as Components of a new Base
Gartner also explains five potential pathways companies can choose to reset based on how they have been impacted by the pandemic: Organizations who have been hard hit by the pandemic are counseled to decrease or indefinitely retire functioning models which were pushed to the verge of breaking.
Organizations thrown into chaos because of sudden surges in demand could anticipate the need to reunite into pre-pandemic amounts in the not too distant future. Others have been advised to reinvent themselves, possibly by focusing on new lines of business or refocusing capacity. In the end, associations with digitalized company units would be wise to rescale.
Manufacturers must determine where their goods fall within this five-point scale and strategy accordingly. Moving into 2022, we could expect to find lots of calling around future earnings as Manufacturers roll into restoration and conform to the”new standard” — that will require Manufacturers to readjust predictions, evaluate the impact on the company, and ascertain the way to retool, rescale, or reunite. Given the huge diversity which exists within the production business, it is safe to state that no two businesses’ COVID-19 exit plans are very likely to look exactly the same.
A New Approach to ERP
Enterprise resource planning (ERP) planning systems have become a mainstay amongst production firms because of their capacity to streamline processes through automation, offer accurate, real-time info, and also to reduce prices. Nevertheless, COVID-19 has fundamentally altered the manner in which manufacturers interact together and use their ERP systems.
We have seen an increasing number of manufacturers coating agile applications in addition to their current ERP systems, as opposed to attempting to create ERP to do all of it. By way of instance, a number of our manufacturers here at Hitachi Solutions have approached us to make Power Apps for all from worker security programs to back-to-work systems; those temporary solutions sit in addition to our customers’ ERP systems and permit them to adapt to the new standard of COVID-19 without needing to experience a multi-year development procedure.
We have also seen Manufacturers take a data-driven strategy to ERP updates. This strategy empowers manufacturers to transfer data ahead, merge around modern data systems, and assemble tangent functions in addition to their present data model without needing to execute a complete replacement or create any substantial adjustments to their current ERP, causing a quicker time to value.
Manufacturers Gain Greater Visibility into Big Data
Renewed interest in IoT and enhanced emphasis on predictive maintenance means big data is a much larger trend than previously; we could probably expect virtually every surface to be changed to a detector for information collection to be able to create real-time insights for Manufacturers.
The capacity to collect information from a multiplicity of resources, together with increasingly strong cloud computing capacities, make it feasible for Manufacturers to slice and dice data in ways that provide them with an extensive comprehension of their company — a complete essential since they operate to enhance their forecasting and planning units and produce a prosperous COVID-19 exit approach.
VR & AR Support Touchless Service Model
COVID-19 has turned out to be a significant barrier to the field support arms of manufacturing firms, preventing technicians from visiting job sites to install administer or equipment fixes. Luckily, assistive technologies such as augmented reality (AR) and virtual reality (VR) have made it possible for technicians to give remote support by sending clients AR- and – VR-enabled apparatus and walking through basic repairs and troubleshooting.
For many Manufacturers, this presents a thrilling prospect. Before, clients were often loath to research touchless support alternatives and rather preferred the ease of having a tech come onsite to finish a repair. Now, as a result of COVID-19, more clients are open to the idea, allowing manufacturers to assess new procedures and processes together with the long-term objective of making them permanent fittings. In the long run, clients and field support technicians gain from the decreased probability of vulnerability, and manufacturers gain from researching new lines of business.
3D Printing Makes Production Faster & Cheaper
Even though it may appear to the public like something from a science fiction book, 3D printing was a staple in additive production for nearly 40 years. Nowadays, manufacturers rely on 3D printing to encourage prototyping — an exceptionally cost-effective method for product designers to test and troubleshoot new goods — and also to create items on demand as opposed to needing to manufacture and warehouse them.
3D printing has also changed the time-consuming and expensive procedure of tooling. Historically, it took weeks for manufacturers to produce the molds, jigs, and fixtures necessary for the mass manufacturing of heavy gear, and lots of manufacturers relied upon the support of tooling firms headquartered abroad. Now, due to 3D printing, manufacturers may finish tooling onsite in just a matter of days; that has generated 3D printing a fixture at the automotive and aerospace manufacturing companies lately.
Manufacturers Reevaluate Shoring & Sourcing
Ahead of COVID-19, reshoring — which is, bringing imported products or substances back to national production — was well on its way to becoming common practice among U.S.-based manufacturing companies. Based on a report, as numerous as 749,000 tasks were attracted back into the U.S. between 2010 and 2018 as a consequence of reshoring.
There are a number of reasons for this:
- The savings in several go-to offshoring nations have become more powerful in recent decades, resulting in a rise in salaries for their taxpayers.
- Nations where labor stays cheap lack the infrastructure to support complex production operations.
- The price of transport continues to grow.
- Manufacturers are now able to use innovative software applications and robotics to automate a number of the procedures that once demanded human intervention.
“COVID-19 has gotten people’s attention,” explained Harry Moser, President of this Reshoring Initiative, a company founded to promote production repatriation. “COVID-19 has shown the U.S. dependence on offshore production, notably China. […] Since the pandemic shows we could suddenly be in the impossible situation of not having sufficient critical supplies. This isn’t because we did not attempt it’s because we had practically no base in which to assemble here from the U.S.”
Very similar to the way COVID-19 has prompted a renewed reshoring campaign, it has also led Manufacturers to reevaluate sourcing. The pandemic has caused considerable disruption to the worldwide supply chain, which makes it harder for Manufacturers who supply from different nations — China, specifically — to get a grasp of substances.
It has prompted many Manufacturers to diversify sourcing by embracing a”China, Plus One” plan or near-sourcing. Near-sourcing, also called local sourcing, is the procedure where a company brings operations nearer to where its final product is marketed; in production, it generally refers to the sourcing of raw materials from national providers.
We can anticipate both reshoring and near-sourcing to be top tendencies heading into 2022, as Manufacturers try to reduce or remove completely dependencies on foreign substances. These trends won’t just aid manufacturers stay resilient to prospective COVID-related disruption in the event other nations shut down another time, they will also supply a much-needed boost into the U.S. market.
The Job Market Remains Uncertain
We have seen news reports regarding mass layoffs and furloughs as a consequence of COVID-19; obviously, the manufacturing sector continues to be affected, but the amount of disturbance varies from 1 manufacturer to another according to what they sell. Businesses that produce bespoke products have noticed a substantial decrease in employees, while those who make essential goods have really had to scale upward, including product lines, and employ new employees so as to fulfill demand.
The ones that have had to decrease their workforce have switched to IoT automation and product lineup and mill process optimization in an effort to keep things as close to business as normal. Optimization, in particular, allows for cost control and endurance, which are vital for businesses whose earnings are down.
Looking forward, manufacturers will probably continue to reevaluate their work based on changes in demand. Those businesses which find themselves in a position to employ will probably have their sights set on exceptionally data-focused employees.
Even though this kind of worker is very likely to be a rare find on account of the continuing lack of tech-savvy ability, companies such as Hitachi Solutions are creating easy-to-use technology which will produce new opportunities for workers of all backgrounds.
COVID-19 has altered the entire world — and the manufacturing industry — as we understand it. Manufacturers who want to survive in this new age must fully adopt Business 5.0 and reimagine the future of the businesses — and the sooner, the better.
Image credit: Hitachi Solutions