Manufacturing trends to watch in 2020
- According to Statista, UN data shows China to be the world’s manufacturing powerhouse. Manufacturing is liable for nearly 30% of the country’s economic output
- Shutdowns in China, as a result of the coronavirus, could have knock-on effects around the world
- The U.S. economy is far less reliant on manufacturing lately. In 2018, the manufacturing sector accounted for just 11 per cent of GDP within the world’s largest economy
Why technological trends got to be adopted in the manufacturing sector?
Manufacturing is one of the most vital and important industries within the world. The competition is large and therefore the development happens at a quick pace. Therefore, it’s very essential to acknowledge what are the large trends for the years ahead and the way they will be used to gain competitive advantage. There’s many uncertainty within the world of producing at the instant. The items like the US-China trade war, the epidemic diseases like corona-virus etc. So, it’s crucial to realize competitive advantage within the areas which may be controlled. The thorough business plan is merely not enough to realize the targeted goal. Moreover, the industry trends got to be understood so as to implement those plans.
The following are the trends in the manufacturing sector in 2020:
• Machine Learning and AI: Manufacturing may be a massive industry and therefore the changes that encounter these industries requires a certain time to regulate. The progress could be slow and should attend just one direction. In such a posh industry, AI, machine learning and advanced analytics offer numerous opportunities to extend profit margins. These technologies can’t simply be ignored. The more complexities these companies faces, the greater the chance to use these technologies. This offers a competitive edge for the success of any company. These technologies aren’t just limited to at least one area but can improve performance in every area. The areas include factory floor, supply chain and thus the customer relations.
• 5G: 2020 is that the year where there’s more discussion on 5G to be rolled on a bigger scale. It’s expected to possess big impact on smart manufacturing. The technology will allow manufacturers to avoid latency and enable real-time communication. However, every manufacturer won’t be ready to cash in of the advantages of 5G. This relies on which area it’s available in. However, those that are willing will have a great opportunity to enhance their processes and still become more efficient.
- Engaging with customers: The utilization of advanced technologies helps to form everything more interconnected. The customer expects to be closely involved within the manufacturing process and to possess more customization options. Technology has allowed far more collaborative relationship between companies and customers. In 2020 companies got to leverage the information received from customers to make more value for them. The power of the businesses got to be used to improve the customer experience.
- Distributed Manufacturing: The local, distributed manufacturing is merely getting to be more popular in 2020. The process of assembling and packaging end products almost to the final destination brings many complexities. However, technology helps to attenuate those complexities and maximize the advantages. Small-scale distributed manufacturing allows companies to save lots of freight costs, reduce lead times and increase responsiveness. On the opposite hand, coordinated manufacturing across many various factories will always present challenges. If technology is allowed to those individual factories, the manufacturing distribution becomes easier. Hence, the trend is becoming a more appealing prospect for several companies.
- Increased Responsiveness: Technology is providing a platform for businesses to enhance their performance in responsiveness and agility. Operating an enormous business in an uncertain climate requires the ability to react quickly to vary and minimize disruptions. The introduction of AI, machine learning and advanced analytics makes easier for companies to predict things like demand and instantly make changes to match that demand. If the companies increase their ability to vary production flows, they will adapt to the surface factors affecting businesses far more easily. Besides, it helps to streamline the production.