The Industrial Manufacturing Industry Trends of 2020 and Beyond

The primary driver of the past year’s trends, as you may have guessed, was a global pandemic, which proved the need for more adaptable, modernized industrial manufacturing practices.

Impact of COVID-19

Overall, COVID-19 stunted manufacturing by ballooning costs throughout the industry. It highlighted a necessity for agility and innovation, as well as an increased reliance on digitization, to maximize production. Companies that were able to do this effectively reaped enormous benefits and were propelled to the front. 

Leaders must be agile and on the forefront of innovation

It may seem counterintuitive, but leaders should focus on innovation, even in (excuse the now-all-too-common cliche) such uncertain times. But to stay relevant and survive, manufacturers should prioritize automation and digitization, the “4th Industrial Revolution.”

Even if it means putting other projects on the back-burner, modernizing production methods will lower costs and increase capacity, allowing companies to remain globally competitive as prices fall worldwide. 

Some companies may be hesitant to adopt new strategies because they fear failure, but a few “failures” are worth modernization. Developing products and business strategies the “old-fashioned” way takes too long, especially in the age of AI-generated solutions: by the time something is ready, it may already be obsolete. Virtual testing and simulations, for example, allow these advances (and others that can’t be imagined by human minds) to materialize at an exponentially faster rate.

Reorganizing supply chains

COVID-19 disrupted worldwide supply chains and further proved that dealing with traditional suppliers, like China and Mexico, is becoming more cumbersome and expensive. So it might be time to seek different suppliers from Malaysia, India, Hungary, Brazil, or other up-and-comers.

Working with local manufacturers offers multiple advantages, such as quicker time to market, easier communication, improved quality, decreased shipping costs, and a circumvention of (currently increasing) tariffs. 

In addition, multiple-location companies with production capabilities in various places benefit from added “agility” in case of unforeseen circumstances. Like, let’s say, a world-ravaging epidemic or local manufacturing hiccups. 

And bringing everything closer to home lets companies take advantage of local nuances to make their products more desirable. However, increased production costs are a potential downside that should be considered when deciding strategy.

Investing in continuing education to keep up the pace of innovation

Another problematic trend is a dwindling workforce that has been magnified by a lack of skilled workers and STEM graduates. A possible solution is to collaborate with external educators and government agencies, to offer vocational programs and other teaching modalities. In fact, it’s estimated that “54% of employees are going to need significant training” by 2022, with more than one-third of those requiring at least 6 months of training.

Conclusion

To effectively adopt the technological evolution, company heads must set clear goals and ensure cooperation throughout their firms. Software companies have established a blueprint in their eagerness to promote remote work, artificial intelligence, machine learning systems, and automated production methods.  

A more adaptable industry can handle the many problems arising from the ongoing global upheaval. In many cases, the pandemic-induced issues highlighted a pre-existing need to futurize “primitive” manufacturing methods.

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