In the world of manufacturing ERP, innovation doesn’t knock — it kicks down the door with a robotic foot. Picture factory floors where robots and humans team up, 3D printers whip up customized products in a snap and machines foresee problems before they happen. This isn’t science fiction; it’s the future of manufacturing.
These trends fuel the flames for much-needed manufacturing innovation and problem-solving. Ready to stay ahead of the game? We’re delving into forces shaking up the industry. So, buckle up and read on!
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Key Takeaways
- The United States saw the most robot installations in 2022 with 39,576 units installed.
- Robots aren’t replacing humans, but working alongside them in factories can free up people for more complex tasks and improve safety.
- AI is transforming manufacturing by designing products, optimizing production lines and improving quality control.
- The future of manufacturing is digital, with factories using data to automate tasks, create 3D-printed products and predict equipment failures.
- The workforce needs reskilling to adapt to new technologies like robotics and data science.
- Manufacturing is becoming more sustainable by focusing on reducing waste, using recycled materials, and designing products for a longer lifespan.
- Manufacturers are building resilience in their supply chains to avoid disruptions caused by unexpected events.
Top Manufacturing Trends for 2024
1. Industrial Automation and Robotics
The International Federation of Robotics (IFR) recorded a record-high surge of 3.9 million more operational robot installations in 2022. The United States, the region’s leader in the Americas, saw robot installations reach 39,576 units in 2022 — a 10% leap in just one year.
But why this explosion in automation?
The future of automation in manufacturing is through integrated technologies. Interconnected machines and sensors collect real-time data, allowing factories to optimize production and minimize downtime constantly.
So, to answer the burning question: Are human jobs at stake?
The short answer: No. Robots aren’t stealing all the jobs. They excel at repetitive tasks, freeing up humans for more complex roles. Robots are also becoming partners in hazardous environments, keeping workers safe.
Mike Ciaccio, the General Manager of Polymershapes, shared his insights on robotic systems with us. Based on his experience with clients, he believes that the tide is turning from a race between man and machine to a partnership:
…Some of our high-tech customers are using robots for quality assurance — employing robotic systems that are equipped with cameras and image recognition capabilities that inspect circuit boards for defects. The human inspectors verify and classify any anomalies detected by the robots.”
The future leans towards a collaborative approach, with the rise of cobots, which are smaller, versatile robots designed to work alongside humans. Cobots handle the heavy lifting or tedious aspects, allowing employees to focus where critical thinking is paramount.
A Case in Point: Bosch
Let’s consider a real-world example of automation and robotics reshaping industries. Bosch, a technological powerhouse, stands as a prime example.
Bosch Thermotechnik implemented cobots and saw several major benefits:
- Ergonomic Relief: Repetitive tasks like assembly and material handling are often physically demanding. Cobots take over these duties, reducing strain on human workers.
- Increased Efficiency: Cobots perform tasks with high precision, boosting production speed and consistency.
- Flexible Deployment: Unlike bulky industrial robots, cobots are lightweight and require minimal setup. This accessibility allows for easy integration into existing production lines and redeployment as needed.
Ciaccio suggests that this human-machine collaboration is poised to evolve manufacturing jobs and the need to reskill existing workers. But more on that later!
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2. Generative AI and Machine Learning
The business world is abuzz with GenAI and machine learning. Recent findings by Market.us predict that the global generative AI in the manufacturing market will soar to $10,540 million by 2033.
Another noteworthy finding is that the product design segment took the lead in 2022, capturing 27.4% market share.
AI and robotics adoption is skyrocketing. The State of Generative AI & Market Intelligence Report reveals that 80% of respondents anticipate ramping up their AI reliance within the next 12 months.
Manufacturers, and by extension, consumers, have much to anticipate. Here’s why:
Smart Design for Streamlined Production
Generative AI is emerging as a powerful design partner. AI algorithms analyze vast datasets to suggest innovative product tweaks or entirely new concepts. Product design is leading the charge. In 2022 alone, it seized a commanding 27.4% market share.
AI is changing the landscape by enabling swift design generation, slashing time-to-market, and fostering heightened product innovation.
Quality on Autopilot
Machine learning is taking quality control to new heights. By continuously analyzing data from machine sensors, these algorithms can predict potential equipment failures before they occur.
The result? Less downtime, fewer defects, and ultimately, a more consistent and reliable product for your customers.
Efficiency Management
AI benefits extend beyond design and maintenance. Generative AI is poised to become the ultimate efficiency expert. By analyzing vast data on production lines, material usage, and energy consumption, it pinpoints areas ripe for enhancements.
These improvements mean smoother workflows, reduced waste and an uptick in productivity. All of which can lead to lower costs and a broader array of offerings for your customers.
3. Industry 4.0
The fourth industrial revolution is here, and it’s digital. This current wave is bringing the Internet of Things (IoT), artificial intelligence (AI) and digital tech into the manufacturing world.
It’s a brave new world, but how exactly is this happening? At the heart of it all lies data.
Data analytics makes a factory environment possible where machines and sensors collect real-time data on every aspect of production.
Here’s a glimpse into the exciting future of manufacturing technology:
- Smart Factories: Imagine factories where machines analyze data to identify inefficiencies and adjust production lines automatically. This ability translates to smoother operations, less waste and a significant boost in productivity.
- Additive Manufacturing: Forget traditional manufacturing limitations. 3D printing helps create complex, customized products on demand. This strategy could revolutionize everything from prosthetics to aerospace components with minimal waste and increased design freedom.
- Digital Twins: These virtual replicas of physical machines act as digital shadows, allowing for simulations and predictive maintenance. Imagine catching a potential equipment failure before it happens, minimizing downtime and maximizing efficiency.
But not everything is sunshine and rainbows. The question arises: is this impact ultimately good, bad or downright ugly? As manufacturers navigate Industry 4.0, they must brace themselves, especially with the looming possibility of government oversight.
Ciaccio adeptly dissects the pros and cons of Industry 4.0, shedding light on the complexities of this technological revolution.
With Industry 4.0 gaining traction, I see the new technologies impacting the way companies operate in two primary ways: First there is the positive potential of companies being more innovative and efficient. The technologies can improve internal processes. On the other hand, there is a negative potential for big data and interconnectedness between entities to reduce competition — especially with more intrusive government oversight. Perhaps volumes could be written on each of those potential impacts.”
4. Reskilling and Workforce Transformation
Did you know that the U.S. manufacturing industry could see a net need for about 3.8 million jobs between 2024 and 2033? If workforce challenges aren’t stopped in their tracks by 2033, more than 1.9 million of these jobs could go unfilled.
That’s a lot of missed opportunities.
The culprit? The rapid march of Industry 4.0, where automation is taking center stage. But fear not! This isn’t a story of robots replacing humans; it’s about creating a powerful human-machine partnership.
The good news is that the manufacturing workforce is ready to embrace this change. According to the Kahoot 2023 Workplace Culture Report, a whopping 93% of manufacturing workers eagerly seek more learning and development opportunities.
Additionally, in the same report, 64% of respondents said they would extend their employment by six years with enhanced career support and training. That’s a win-win for everyone; manufacturers retain experienced talent, and workers get access to fulfilling careers.
The World Economic Forum’s Future of Jobs Report says that new technologies will drive some 69 million jobs in the next five years. In manufacturing, emerging technologies are fostering a new wave of employment opportunities, including roles like:
- Data Scientists
- IoT Engineers
- Cybersecurity Professionals
- Robotics Engineers and Technicians
What’s Next?
With new jobs popping up in fields like robot programming and data analysis, it’s crucial to prioritize reskilling the workforce. This means investing in training programs tailored to emerging roles and technologies, ensuring employees have the right skills to thrive in the evolving industry.
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5. Sustainability and Circular Design
Remember those childhood toys that eventually broke and ended up in the trash? That’s how traditional manufacturing operated for decades: take, make, dispose.
The result? A mountain of environmental woes. CO2 emissions ballooned by 410 million metric tons in just a year, according to the International Energy Agency. Even worse, the CBO points the finger squarely at manufacturing, naming it the culprit behind 12% of US greenhouse gas emissions in 2021.
The Challenge
The problem goes deeper than just smokestacks:
- Most sustainability problems are rooted in complex chemistry and materials science issues. Solving these problems requires breakthroughs in innovation and sustainable materials.
- The environmental impact goes far beyond a factory’s walls. According to Accenture, supply chains generate a whopping 60% of all global emissions.
- The biggest challenge might be time itself, with a global population projected to reach 9 billion by 2050.
- Economic barriers like a high initial investment pose a challenge for many manufacturers. While the long-term benefits are significant, the upfront costs can be daunting for businesses with limited resources.
In Ciaccio’s words:
In my experience, the biggest hurdle for manufacturers to adopt sustainable practices is initial cost. Even if eco-friendly practices can be implemented incrementally, many organizations view the time for planning and the potential interruptions to production as too costly to undertake at present, perpetually pushing sustainability initiatives to the back burner.”
The Step Forward
As the world grapples with mounting waste, a new approach to product design is gaining traction: The circular economy.
According to Matt Little, Director and Founder of Festoon House, there’s a noticeable shift towards closed-loop systems. Little emphasizes the importance of product design in this transition:
Think about [circular economy systems] like this: instead of creating something that’ll just get thrown away once it’s done, we’re designing products that can be easily disassembled and recycled or reused. This shift is pushing manufacturers to rethink their entire production process, from design to distribution.”
- Carbon Neutrality: Achieving carbon neutrality means a company’s operations have a net-zero impact on climate change. This move isn’t a pipe dream; it’s a necessary goal.
- Circular Economy: Instead of constantly extracting new resources, this approach focuses on designing products for disassembly and reuse, extending product lifespans, and closing the loop on materials by incorporating recycled content into new products.
- Sustainable Business Models: This means designing products for longevity and easy repair, offering take-back programs for used products and exploring innovative service models like product-as-a-service.
How Businesses Are Responding
According to the World Manufacturing Foundation,
It is impossible to propose a future business model without considering the respective sustainability implications. The challenge is to find win-win strategies that are beneficial for the company, its customers, as well as society and nature.”
Businesses are realizing throwing away resources and spewing fumes isn’t a recipe for a healthy planet (or happy customers for that matter). This broader understanding of sustainability also extends to labor practices and social impacts.
Here’s how manufacturers are getting on board with the green wave:
- Sustainability and Carbon Neutrality: Companies are prioritizing these goals as core values, understanding that environmental responsibility is no longer a nicety but a business imperative.
- Corporate Social Responsibility: Manufacturers, recognizing their impact on society, are actively working to minimize environmental and social harm. This shift translates to ethical sourcing practices, fair labor conditions and community engagement.
- Carbon Footprint: A first step towards reducing the industry’s footprint is calculating the product carbon footprint (PCF). This value is the total greenhouse gas emissions generated by a product throughout its lifecycle.
- Collaboration: Initiatives like the World Economic Forum’s Manufacturing Data Excellence Framework, developed in collaboration with Boston Consulting Group, establish a blueprint for the secure exchange of PCF data across manufacturing and supply networks. By sharing information, companies can collectively reduce their environmental impact.
6. Supply Chain Resilience
Remember that time you went to the grocery store for milk and bread only to find empty shelves? These hiccups happen, but larger disruptions led to the events of 2020.
Unexpected disruptions throw a wrench in perfectly planned production lines. The impact of global disruptions on manufacturing calls for adaptive supply chain strategies.
Supply chain resilience refers to how quickly companies can respond to disruptions in operations by using contingency planning from material sourcing to logistics to final delivery. These adaptive models reduce risk when changing supply chains and drive sustainable growth.
Supply chains use data-driven forecasting to identify potential weaknesses and develop contingency plans to navigate around them.
The benefits are twofold:
- First, supply chain resilience keeps your factory humming. Disruptions happen, but a resilient supply chain bounces back faster, minimizing downtime and keeping your customers happy.
- Second, it creates a more sustainable future for manufacturing. Less disruption means less waste and a more efficient operation — good for the environment and your bottom line.
Using the Right Tools
While the right software isn’t a magic bullet, it’s a powerful tool that can help build super-flexible supply chains and navigate the modern manufacturing world.
While manufacturing ERP software comes in all shapes and sizes, your goal is to find a system that’s ideal for your business. Here’s how to start your software search:
- Identify Your Company Goals: Start by reviewing how a new system will benefit operations. Look for key areas to improve and identify what your team needs to improve processes.
- Know Your Requirements: Use your findings to develop a list of key features required in an ideal system.
- Compare Vendors: Evaluate different vendors based on your requirements list. Instead of starting from scratch, use our free software comparison report to see how different functions stack against your needs.
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Next Steps
The future of manufacturing is intelligent, data-driven and poised to revolutionize the way we make things. It’s a future that benefits everyone, from manufacturers striving for efficiency to consumers who enjoy a wider range of innovative and reliable products.
Considering a software upgrade to keep up with changing times? Use our free and customizable requirements template to pinpoint essential features.
How do you envision these upcoming trends impacting your industry? Share your thoughts and insights in the comments below.
SME Contributors
Mike Ciaccio is the General Manager of Polymershapes, a top plastics manufacturer in California, providing materials and CAD/CAM services to hundreds of markets. Mike has rich experience in manufacturing, both in metal and plastics fabrication. Throughout his career, Mike has demonstrated leadership, people skills, and sales expertise.
Matt Little is the Director and Founder of Festoon House, an outdoor decorative lighting retailer. He is passionate about lighting for events and hospitality. Recognizing a gap in the market for durable commercial-grade decorative lighting, Matt collaborated with industry leaders, designers and architects to develop the Festoon House product line. The brand operates in six major locations in Australia and is available in over 400 retail stores.