Relative to other countries, the United States has a remarkably diverse manufacturing sector, perhaps the most eclectic of the nation’s largest industries. You name it, some manufacturing company in the U.S. makes it — from hydraulics and hardware to plastics and silverware. Because of this, companies within the manufacturing industry — and their supply chain — cannot be painted with a broad brush. Despite the apparently rampant disruption of supply chains, a recent poll led by Oracle and IndustryWeek found nearly half of manufacturers were not negatively impacted by the pandemic. In fact, many are now in a better position today than they were before COVID. That said, supply chain disruptions remain the rule rather than the exception, with nearly 80% of leaders saying it was a top business challenge for them in 2022, according to polling conducted by the National Association of Manufacturers.
A decade from now, each manufacturer will look back upon 2023 differently given their diverse makeup, but here are a few manufacturing trends that are expected to emerge or persist in manufacturing in the months ahead. As you will see, many of them involve some aspect of the supply chain.
Heavy recruitment push to continue
Although the national unemployment rate at the end of 2022 was below 4%, companies in many industries have been struggling to find individuals who can fill open roles. Manufacturing is one of those industries. As of September 2022, there were at least 835,000 job openings among manufacturing organizations large and small, based on jobs data from the Bureau of Labor Statistics. If the high turnover rate in manufacturing employment continues at its present pace, the shortage could hit 2.1 million by 2030, according to the National Association of Manufacturers.
As with numerous other sectors, thousands of manufacturing jobs were lost in 2020 during the pandemic. Those jobs were quickly replaced, however, thanks in part to the economy bouncing back and by robust consumer spending when lockdowns were lifted. Chad Moutray, the chief economist for the National Association for Manufacturers, told Manufacturing Dive that employers are raising manufacturing employee wages to encourage more applicants, but this effort has not been enough to close the gap.
To increase productivity and make up for lost workers, manufacturers are increasingly investing in automation, AI, and other smart manufacturing capabilities. But the future of the industry remains with the traditional flesh-and-blood laborer. Because of this, manufacturing companies need to invest in their people and ensure workers receive the proper training so they have the skill sets needed to succeed in this line of employment.
“Manufacturers must continue to lead the way in skills development if we are going to close the skills gap and make the industry more competitive,” said Moutray, who also serves as the director for the Center for Manufacturing Research.
Some of the employee skills that manufacturing companies will need to be competitive include being adept with data gathering and analysis. While these are hard skills, employers are also seeking soft skills as well, such as critical thinking, problem-solving, collaboration, and communication.
Growth in additive manufacturing
Manufacturing may be one of the oldest industries in the world, but the rapid pace of technological innovation is creating new subsectors within the field, one of which is additive manufacturing. Additive manufacturing uses 3D printing technology to create a variety of applications, products, and even food for personal, commercial, or industrial use. Just about every industry has benefited from the revolutionary capabilities the 3D printer has to offer, including healthcare, transportation, restaurants, and fashion.
The processes that make three-dimensional creations possible depend on the item that is produced and may include binder jetting, material extrusion, sheet lamination, and vat photopolymerization. With 3D printing technologies becoming increasingly sophisticated, the federal government is seeking to leverage additive manufacturing for national security and military needs. Kevin DeVries, deputy director of the DoD’s Manufacturing Technology Program, noted in a statement that if the U.S. is to achieve its goal of test-firing a hypersonic missile in 2023, 3D printing will play a key role. “We need to be pushing the envelope with materials produced using the additive manufacturing processes,” DeVries said. “The science has proven it is possible, but the practice is not widespread enough.”
Relative to other subsectors of manufacturing, additive manufacturing is still in its infancy. But it is poised to grow substantially in the years ahead, potentially reaching a valuation of approximately $34.8 billion by 2028, according to Facts & Factors. That is up from $11.3 billion in 2021. The fascinating nature of the novel technology may inspire more individuals to pursue a career path in the industry in the years ahead.
Further expansion of smart factories
From phones to TVs to headphones, consumer technologies have clearly received the “smart” treatment, which in the tech world refers to innovations that allow devices to “think,” such as by employing artificial intelligence and machine learning. Workplaces, like factories, that utilize these same capabilities have gained traction as “Industry 4.0” becomes more entrenched in global economies and work processes.
Like some of the other manufacturing trends mentioned here, smart factories are not new. In 2017, for example, well-known manufacturers like General Electric, BMW, and BASF had at least one smart factory system or initiative in place or were planning one. They made these early investments because smart factories have the potential to reduce operational expenses, improve manufacturing quality, and increase overall output.
Fast forward to today, and newly launched manufacturers are using smart factory capabilities right out of the gate. Smart factory operations and techniques are expected to become more of the norm moving forward. The industrial internet of things market globally in 2021 was worth $263 billion in 2021, according to Grand View Research. Its valuation is expected to rise at a compound annual growth rate of 23% through 2030.
AI for decision-making purposes
Artificial intelligence has become widespread among manufacturers, especially in Europe. Last year, according to Google, an estimated 79% of manufacturers in Germany and 80% of those in Italy reported using AI in their regular and ongoing operations. Perhaps surprisingly, the U.S. (63%) trails both of these countries, as well as France (71%) and the United Kingdom (66%). Including all the nations that Google polled, more than three-quarters of manufacturers have incorporated AI into their day-to-day operations.
Today, manufacturers are utilizing AI for a variety of supply chain activities, including quality control inspection, production checks, inventory management, and more. The more efficient use of resources, time savings, and potential for lower costs are making them believers. If more leading industries, in addition to manufacturing, incorporate AI into their business processes, it has the potential to boost global GDP by $13 trillion by the year 2030, according to Harvard Business Review.
Flexible manufacturing
A case can be made for high-speed internet being the most groundbreaking invention in world history. Thanks to its availability, millions of organizations were able to pivot to all-remote work arrangements, a capability that likely staved off a more long-lasting recession, if not depression. While manufacturing is predominantly a profession in which work occurs in a central location — given the machinery that’s involved — flexible manufacturing has unmoored the industry from physical spaces.
Flexible manufacturing involves leveraging work machines, material handling, or central processing computers — or a combination of all three — so organizations can maintain production, but in a broader variety of work environments. These systems can also respond to certain discrepancies that may compromise output, which provides employers greater reliability.
Given the success some manufacturers experienced during the pandemic, many organizations have maintained their remote work arrangements. According to polling conducted by Fictiv, more than 80% of manufacturing executives who allow their employees to work remotely have had a beneficial experience. It positively affected their points of view regarding flexible manufacturing and justified their investments in systems that allow for added versatility.
The trends of today and tomorrow are meant to help manufacturers build a more resilient and sustainable supply chain. Since our founding, Inspirage specializes in implementing the right systems and solutions so businesses achieve a higher standard of excellence. Contact us today and please browse some of our Customer Testimonials and Spotlights, which are real-life examples of how we deliver solutions to our clients’ operational challenges.
