While the industry has faced significant challenges over the fast few years, the outlook for the future of manufacturing appears to be promising. Despite setbacks from the Covid-19 pandemic, supply chain disruptions, emerging geopolitical issues, and the ongoing labour shortage in the skilled trades, the sector has been growing and adapting—primarily as a result of recent tech innovations.
As the industry continues to evolve, it’s worthwhile to unpack what to expect for the future of manufacturing.
The manufacturing industry is in a period of significant transition. As AI and automation become more ubiquitous in every sector of the economy, most manufacturers are currently occupied by understanding how best to integrate new technologies into their operations.
What’s in store for the future of manufacturing?
The industry has also been significantly impacted by exterior forces, particularly events such as the Covid-19 pandemic that caused impacts on supply chains, and demographic changes that have resulted in a labour shortage in the skilled trades.
Recognizing these ongoing issues, it’s no wonder that the future of manufacturing is being shaped by technologies and practices that are helping manufacturers adapt to change and build their resilience.
What are the emerging manufacturing trends in 2024?
In 2024, the dominant trends in manufacturing are centred around ensuring competitiveness amidst the changes in across the industry. Here are the top trends to watch right now.
Navigating the skilled trades labour shortage
With the skilled trades shortage continuing, manufacturing companies are focusing on shifting their workforce policies to improve employee attraction and retention. Recognizing that they are competing for workers from a shrinking talent pool, many businesses are becoming more strategic about their talent strategies.
Increasingly, employers in the industry are touting flexibility as a differentiator, offering options for remote work in certain roles, compressed workweeks, and the opportunity to swap or split shifts. Additionally, many are investing more resources on developing and upskilling workers to strengthen the talent pipeline. Naturally, most companies are also boosting compensation to remain competitive.
To support recruitment, many employers are investing in digital hiring tools, which can help recruiters expand the pool of candidates and identify workers with the skills they need. Learn more about how software solutions can help with hiring.
Ongoing digitization
Digitization in manufacturing is no longer a vision in the far-off future—it’s here. New digital tools are unlocking opportunities to leverage real-time insights and increase productivity across manufacturing operations.
AI tools, the utilization of the internet of things (IoT), predictive maintenance, and a range of other technologies have gone from being experimental innovations to becoming standard practice in the industry. Now, the focus has shifted towards optimizing the use of the new tools, understanding how to utilize the technologies effectively to solve supply chain issues, support workers, and increase efficiency.
Optimizing human-automation interaction
As AI, automation, and other digital technologies become the norm within manufacturing, companies are also pivoting their attention towards ensuring that human workers are interacting effectively with the new tools to optimize their productivity.
To ensure that the implementation of these technologies goes smoothly, it’s critical for the tools to be integrated thoughtfully into operations. One way that companies are optimizing human-automation interaction is by consulting thoroughly with factory operators and workers, seeking input and engagement on technological decisions. Employees know their roles best, which is why it’s vital for them to be involved in the changes. Creating environments that encourage learning and development and partnering with governments on implementation and policy have also been shown to be essential to successful integration.
Electrification and decarbonization
With more countries and companies than ever making net zero commitments, the manufacturing sector is increasing focus on electrification and decarbonization to meet current and anticipated carbon standards. An influx of government incentives and subsidies are helping to smooth the transition and encourage innovative solutions in the industry.
As Deloitte predicts in their recent report on manufacturing, the key practices for effective electrification and decarbonization will be:
- Strategic collaboration between companies to invest in joint solutions
- Creating specialized divisions focused on the development of zero-emissions products and technologies
- Strategic expansion to adjacent markets that align with electrification trends, such as EVs and renewable energy
Companies can also further these efforts by implementing energy-saving programmes within production and fostering cross-departmental collaboration, empowering employees to lead the way.
Increasing resilience
Alongside the technological changes, there has also been an observable shift in the manufacturing sector towards anticipating problems and implementing smart solutions before they occur. Rather than using the traditional “break and fix” model—wherein a machine fault causes production to stop, then an expert is brought in to diagnose and solve the problem—new tools allow maintenance technicians and engineers to solve problems before they happen. This predictive approach to maintenance is transforming how the sector functions, leading to fewer interruptions and a more efficient production process.
Manufacturers are also preventing pauses in production by focusing on improving resilience in their supply chains. By increasing investment in domestic production and adopting digital tools that allow them to more easily identify alternative suppliers, companies are increasing agility and efficiency.
The bottom line
While the manufacturing industry is in a state of flux right now, it’s also in a period of opportunity. As new technologies and ideas filter into the sector, companies are focused on improving their resilience and productivity, retaining top talent, and transitioning towards a more sustainable future.
