10 Trends That Will Dominate Manufacturing in 2023

10 Trends That Will Dominate Manufacturing in 2023
By: Martin Boggess

Responding to supply chain disruption by exploring in-sourcing and direct-to-consumer models; utilizing mergers and acquisitions as an opportunity to reevaluate and modernize their software ecosystem for the manufacturing industry heading into 2023, it’s turning challenges into opportunities. There are some predictions for the biggest manufacturing trends of 2023, with insights on how manufacturers can take advantage of them.

Labor Issues Create Uphill Battle

Thousands of employees voluntarily leave their jobs in search of opportunities with better wages, better working environments, and better work-life balance. Under these circumstances, it’s evident that the push to attract, hire, and retain talent from younger generations is one of the top manufacturing trends as we head into 2023. To overcome the hurdle that is the Great Resignation, manufacturers will need to offer competitive pay and benefits and create the kind of workplace environment that more closely aligns with candidates’ expectations.

Employees Seek More Favorable Working Conditions

Speaking of health, it remains a top priority for manufacturers everywhere as employees return to the workplace and vendors resume in-person visits. Although many COVID-related restrictions have largely been lifted, we still expect manufacturers to continue to emphasize the importance of proper sanitization and closely monitor who enters and exits their facilities. Traceability will remain an important manufacturing trend in 2023, with companies in-sourcing facilities maintenance and management, reclaiming internal equipment data from original equipment manufacturers (OEMs), and demanding greater transparency from suppliers.

Product as a Service Has Its Day

Product as a Service known as Servitization and abbreviated as PaaS. It is a business model in which manufacturers lease (rather than sell) equipment to customers and/or offer a list of subscription-based value-added services. Customers benefit from this arrangement by only paying for what they need, gaining additional support from OEMs, and accessing a new array of value-added services, which help optimize operations.

The internet of things (IoT), artificial intelligence (AI), predictive analytics, and other related technologies have finally reached a level of maturity where PaaS is no longer a theoretical possibility, but a real opportunity. As technology matures, it also becomes more affordable and accessible, which means a greater number of manufacturers will be able to capitalize on PaaS.

These factors, combined with changes in consumer behavior — including the desire for a better customer experience and the demand for less expensive equipment — means that PaaS will finally have its day in 2023 and become one of the biggest manufacturing trends of the year.

IIoT is (Still) The Big Thing

Industrial IoT (IIoT), which refers to the extension of IoT to industrial applications — remains a leading manufacturing trend for 2023 thanks to new and emerging use cases. IIoT, which entails the interconnection of unique devices within an existing internet infrastructure, has enabled manufacturers to make informed, strategic decisions using real-time data and achieve a wide variety of goals, including cost reduction, enhanced efficiency, improved safety, product innovation, and more.

The Next Generation of Predictive Maintenance Is Here

By using predictive resolution in conjunction with IIoT, manufacturers can ensure that production assets and/or customer equipment operate as intended, proactively address issues before they have the chance to lead to unplanned downtime and extend the life of machinery.

This is yet another area in which Product as a Service will prove essential, as the usage data customers generate will provide manufacturers with other valuable data point that they can use to build machine learning models and engage in predictive resolution.

A Modern Approach of ERP

There’s a growing number of manufacturers to modernize systems and transition to the cloud, also to reconsider what it is they need their ERP systems to do. In 2023, we expect to see a radical shift away from heavy customization, which can contribute to unnecessary complexity and make it difficult to consolidate multiple systems and achieve growth targets, and toward simplicity. As part of this ERP modernization process, manufacturers are taking a step back; figuring out what their actual business needs are; designing global templates and best practices to support those needs, allow for future optimization, and accelerate growth.

Manufacturers Find Meaning in Big Data

By making more informed decisions, manufacturers can better support their company’s growth rate strategy and drive outcomes. If they’re unsuccessful, better understand what it is that went wrong and tailor their approach moving forward. In that respect, 2023 will be about moving beyond visibility into Big Data, and instead finding meaning in and discovering the benefits of Big Data.

Digital Twins Enhance Production Efficiency

A relatively recent advancement in the world of IoT, a digital twin is an exact replica of a real-world piece of equipment, or a particular component rendered in a virtual environment. Since it is exact, the digital twin mirrors the actual asset not only in appearance, but also in functionality, how it connects to other components or machines, and even environmental conditions.

Manufacturers Make the Most of Supply Chain Challenges

Investing in technologies along with building redundancies into the supply chain, considering new suppliers and sourcing options, and developing ecosystem partnerships. It is a smart way to weather the worst of disruption and build a more resilient supply chain.

Interest in Reshoring & Near-Sourcing Remains Strong

We can expect both reshoring and near-sourcing to remain leading manufacturing trends in 2023, as companies attempt to reduce or eliminate entirely dependencies on foreign materials. These trends will not only help manufacturers remain resilient in the face of future supply chain disruption; they’ll also provide a much-needed boost to the U.S. economy.

Source: https://global.hitachi-solutions.com/blog/top-manufacturing-trends/