Below are manufacturing predictions and trends from Opentext, Oracle and, Advanced Technology Services (ATS) for 2024.
OPENTEXT’S PREDICTION
1. AI enabled digital twins - Manufacturers have been building digital twins of their products and physical production environments for a few years now. In fact, digital twins have been used as part of the product design process for nearly 30 years, with the aim of removing the need for physical prototypes. The emergence of generative AI will transform how users interact with their digital twins. The manufacturing industry has a technological perfect storm ahead of it in 2024 as companies look to leverage the benefits of IoT, AI, Augmented Reality, and 3D engineering models. Generative AI will allow engineers and maintenance teams to literally have conversations with their products. The ability to monitor, control and adjust physical equipment through a 3D virtual representation will transform through life support models. AI will learn through the digital twin as to how the physical model should be operating in real life and based on historical data will be able to fine tune the physical equipment for optimum performance. We are just learning about the potential for generative AI, and 2024 could be a transformational year for the technology in the manufacturing industry
2. Sewing a digital thread through manufacturing information systems - The manufacturing industry is the most global of industries and yet it struggles to ensure that information is accessible anytime and anywhere around the world. Part of the problem is that manufacturers use multiple systems, from ERP, PLM, WMS, TMS and B2B integration solutions to digitize the supply chain. In 2024 we will see more extensive digital backbones being introduced across global manufacturing operations which in turn will allow digital threads to be established between manufacturing, engineering, and process-based information systems. Companies have struggled for years with siloed information but digital threads, through a combination of APIs and other application integration technologies will allow information to be exchanged seamlessly between different manufacturing systems. Digital threads will be critical to the successful deployment of an AI based solution as to obtain real time insights into manufacturing operations as all information needs to be aggregated into a central data lake for processing and analysis. Digital threads will provide manufacturers with the ability to extract valuable insights into their operations and allow processes to be optimized to meet customer and market demand.
3. Accelerated exploration of the industrial metaverse - Virtual Reality (VR) technologies have been around since the 1990s but has seen mixed adoption in the enterprise. This is mainly down to the technology used to project the 3D environments but also identifying valuable use cases for where the technology can be used. Augmented Reality (AR) has seen an accelerated interest during 2023 with the service support sector leveraging the technology for maintenance purposes. Meta quietly introduced the Metaverse nearly two years ago now and received a mixed reception. However industrial companies have been exploring interesting use cases for the technology. Taking industrial digital twins into the Metaverse will likely accelerate in 2024 as companies realise the benefits of using the Metaverse to test digital mock ups of products, to train service technicians in how to maintain complex equipment and for business leaders to test certain ‘what if’ scenarios to see how their business or supply chain operations will perform. There is a debate as to whether VR or AR will succeed but it really depends on the use case and which technology users feel most comfortable using. The Metaverse will likely define a new form of content management system as each 3D object will have data and other assets associated with it that will need to be managed in an efficient way.
4. Embracing ESG and SCOPE 3 emissions mandates - Consumers are forcing manufacturers to rethink how they design, build, and maintain their products. Manufacturers are starting to embrace the Circular Economy by designing new products so that they can be recycled more easily at end of life. Being able to monitor all processes and all external trading partners for ESG compliance will accelerate in 2024, especially as more countries follow Germany’s lead on ensuring that companies are accountable for how they source materials and goods to produce finished products. Developing more sustainable products and processes has been on the increase in recent years but consumer interest in knowing what goes into manufacturing today’s products is forcing manufacturers to comply with new ESG regulations. Manufacturers will become more accountable for emissions not only being produced by themselves but by their multi-tiered supply chains and the logistics carriers transporting raw materials to factories and finished products to their customers. Connecting all trading partners to a common business network will potentially help to track emissions across the supply chain but it may require new EDI document standards to be developed to allow emission values to be captured at each stage of the supply chain process. The technology is certainly available to help improve the monitoring and tracking of ESG and SCOPE 3 emissions and 2024 will see new supply chain technologies and processes emerge to achieve this.
5. Migration to industrial clouds - As manufacturers continue to globalize their operations, they need to connect to a central information management system to ensure they can access any digital asset as required. Manufacturers have been migrating to the cloud for many years but in 2024 we will see industry specific clouds accelerating across different sectors. So, whether you are operating in the automotive, high tech or process sectors, new industry-based clouds will appear that contain pre-built adapters to allow you to seamlessly integrate with any ERP, PLM or B2B environment. They will contain pre-defined process templates to ensure that information flows according to specific business rules used by a particular industry. Finally, they will embrace all the necessary standards to operate effectively in each industry, whether that is embracing ODETTE supply chain standards in automotive sector or IP protection regulations in the high-tech sector. Industrial clouds will transform how companies archive, integrate, and derive insights from industrial information flowing across their internal and external business ecosystems.
ORACLE’S PREDICTION
1. Investing in Technology - The conventional wisdom is that industrial manufacturers that increased their technology investments during the pandemic were better able to weather the downturn and emerge in better shape than those that pulled back tech spending. Leading manufacturers are investing in the following three main technology areas, according to Deloitte’s 2023 outlook survey: robotics and automation, to speed manufacturing, reduce costs, and alleviate the labor shortage (cited by 62% of respondents); data analytics, to improve forecasting and spot supply shortages before they affect the manufacturing line (60%); and IoT, to collect and analyze data from sensors on the factory floor and embedded in industrial equipment to improve manufacturing, supply chain tracking, and product maintenance (39%). The lowest-priority technologies cited in the survey were blockchain (4%) and quantum technology (5%).
2. Attracting and Nurturing Talent - The labor shortages facing US industrial manufacturers are expected to only worsen in the coming years, for several reasons. Workers are retiring faster than they can be replaced; they’re leaving for other industries to seek higher pay and more stable employment; and employers are having trouble attracting specialists, especially from younger generations, to maintain and manage the robots, sensors, and software of Industry 4.0 factories. McKinsey predicts that manufacturers’ demand for traditional skills involving physical, hands-on labor will decline by 30% over the next decade while their demand for technical skills will increase by 50%. However, manufacturers still can’t find enough machinists, welders, metalworkers, production supervisors, and other industry stalwarts.
3. Investing in Sustainability - According to a 2023 US Environmental Protection Agency report, the manufacturing and raw materials industries were responsible for 23% of greenhouse gas emissions in the US. Although the industry has made progress in recent years to reduce those emissions, it still has a long way to go. Manufacturers need to evaluate their entire supply chain and seek opportunities to reduce waste, increase supplier diversity, and prioritize the use of fuel-efficient and electric vehicles on the factory floor and for product delivery.
4. Reevaluating the Supply Chain - In 2023, it’s no longer enough for manufacturers to have visibility into the actions of their suppliers and customers. That visibility needs to extend to their suppliers’ suppliers and their customers’ customers. Successful manufacturers will invest in digital supply chain capabilities that can provide better insights into the functions of each stakeholder along the chain and enable each participant to make better decisions about material sourcing and customer demand.
5. Building the Factory of the Future - The factory of the future will be highly automated and efficient. Drones will fly above production lines, providing workers with data about inventory levels and machine health. Inaccuracies and human error will decline. As AI, machine learning, IoT, and robotics play a larger role in warehouses and factories, there will be less emphasis on physical labor and more on analytical work. But the foundation of the smart factory will rest on a solid back-office base, with financial, production, and planning software that can handle the vast amounts of data that even the smallest factory produces.
ADVANCED TECHNOLOGY SERVICES (ATS)’S PREDICTION
The continued rise of smart factories
1. Factories and manufacturing facilities are poised to pass the tipping point of smart factory adoption, moving from occasional or sporadic implementation of smart equipment to more full-fledged systems, taking advantage of the full potential of data analytics and communication between machinery and central monitoring tools. Why? For several reasons:
2. As older equipment continues to be phased out, newer machines come equipped with onboard sensors and monitoring tools.
3. Manufacturers will be increasingly motivated to implement smart technology in order to keep pace with competitors who are seeing the benefits of the same.
4. The costs of aftermarket sensors and other smart factory software and equipment continues to drop, while the benefits — more proactive and effective maintenance, greater insight into process efficiency, a reduction in overall operating costs — become ever-more apparent.
Increased focus on sustainability and carbon neutrality
5. As ESG — environmental, social and governance — issues become more of a concern for manufacturers, the importance of sustainable processes and pursuit of carbon-neutral practices will become more prominent. In addition to sustainability requirements for government, municipal, and institutional contracts, manufacturers can expect to see more ESG requirements from commercial customers as well.
Artificial intelligence and virtual processes
6. Technologies such as digital twins, machine learning, AI (artificial intelligence), AR and VR (augmented reality and virtual reality) are helping manufacturers become more effective and efficient by enabling remote monitoring, servicing and equipment operation — all without the need to be on-site. With communication approaching real-time, and the computing power to make it truly seem like the operator is in the room with the machine, virtual and remote operation is in keeping with other recent manufacturing trends that enable access, flexibility and safety.
7. In fact, this technology has led to the development of so-called “dark factories,” which are those that are entirely automated. The widespread use of AR and VR in manufacturing is expected to make such facilities a more common element of many manufacturers’ operations.
Data-driven maintenance as a margin enhancer
8. Sensors, remote monitoring, connected devices and the Internet of Things (IOT) have appeared on lists of digital trends in manufacturing for the past several years and that continues this year. Why? On one hand, sensors continue to become more commonplace, communications are even faster and more reliable, and manufacturers are innovating more effective ways to use data to drive predictive maintenance. More effective, efficient maintenance is crucial given the financial hardship that many facilities faced in the last few years and may continue to face in the near future. Since predictive maintenance can vastly reduce unplanned downtime, creating material cost savings is now more important than ever.
9. The emergence of 5G networks now gives manufacturers the bandwidth and speed necessary to deliver more information from devices to the central server. Armed with this knowledge, it’s possible for them to do even more to prevent costly downtime.
Supply chain reassessment
10. The initial worldwide supply chain disruption of 2020 continued to make waves in the subsequent years, driving home just how precarious the normal status quo has been for nearly every facility and business. Thus, it is unsurprising that in 2024, the supply chain continues to hold a prominent position as an area for continuous monitoring, management, and improvement, with facilities seeking creative ways to add flexibility and reliability while also retaining value. Data is one such means, with data-driven inventory management as an effective way to identify previously unknown supply chain efficiencies. Manufacturers can use data to more quickly adapt to the uncertainties of the supply chain landscape and work to minimize disruptions, which continue to be unpredictable.
Changing focus from B2B to B2C
11. Advancements in technology and supply chain strategies are making it possible for many manufacturers to reconsider their relationships with consumers. Rather than relying on retailers or distributors to serve as the middleman, many companies in the manufacturing space today are selling their products directly to the consumer through e-commerce and other methods. With more people than ever doing their shopping online, this ongoing shift away from B2B to B2C should only become more prevalent in the coming year.
The ongoing importance — and permanence — of reshoring
12. In the recent past, reshoring was often presented as a lofty goal for the industry, illustrating a renewed focus on quality, service and fulfillment speed. In the last few years, the importance of doing business closer to home was thrown into sharp relief, with reshoring becoming a necessary way to bolster continuity — not simply a buzzword. In 2024, reshoring is settling in as a more feasible and necessary supply chain solution, evolving beyond a response to a temporary challenge to become a more conventional way of operating.
Employee safety and health
13. Always a primary concern, employee safety is not often viewed as a “trend” so much as something that should be observed and fostered every day. This has led to the adoption of new ways of monitoring and maintaining employee health that are as important for your workforce as they are for your business. Some facilities are choosing to employ more advanced equipment to monitor employee locations, movement and even temperatures to track injury risk and illnesses.
3D printing
14. 3D printing technology has come a long way in recent years, becoming far more accurate, flexible and cost-effective than ever before. This is expected to be one of the most significant changes in the manufacturing industry well into the future. Not only does it allow for rapid prototyping and greater customization of products, but it also has the potential to make maintenance and repairs much faster and easier. Technicians may be able to print a replacement part in a fraction of the time it would take to source parts from a warehouse, cutting downtime to a minimum.
Meeting increased demand with a decreased labor force
15. Concerns about the labor force combined with existing trends in the manufacturing landscape means that companies must be more efficient and nimbler than ever in addressing the skills gap and labor shortages. With demand for manufactured goods continuing to grow, manufacturers are leaving money on the table if they are not able to increase capacity and throughput to fulfill these needs. This requires a top-to-bottom evaluation of all processes, identifying ways to increase efficiency and support the workforce while bridging the skills gap and providing cutting-edge technical training to meet today’s needs. Some of these trends build on those with which you may be familiar from past years, and some are new as a result of today’s unique challenges.
Source:
https://www.oracle.com/my/industrial-manufacturing/industrial-manufacturing-trends/
https://blogs.opentext.com/top-5-predictions-for-manufacturing-in-2024/
https://www.advancedtech.com/blog/manufacturing-trends/
