6 Manufacturing Trends to Watch

In a rapidly changing manufacturing environment, it’s important to assess whether your current operations are ready to take advantage of new opportunities and meet new challenges. The convergence of technology and market forces is driving manufacturers to rethink their operational strategies.

According to our research, 85% of manufacturers believe they must transform their day-to-day operations to remain competitive.

By adopting advanced technologies such artificial intelligence (AI) machine learning (ML), and connected assets, manufacturers can streamline processes, reduce costs, and improve overall efficiency. These technologies enable real-time data collection and analysis, which in turn can lead to better decision-making and more efficient resource allocation.

Another operational challenge for manufacturers lies in the ability to hire and an aging employee base. Manufacturing decision makers listed workforce concerns as their top growth challenge, according to our research. Manufacturers understand that their workforce is their most valuable resource and are committed to attracting new employees and training and developing their current employees. By upskilling their workforce, manufacturers ensure their employees have the knowledge and skills to effectively operate and maintain advanced technologies.

To maintain a competitive edge, it's crucial for manufacturers to enhance efficiency, productivity, and customer service. One effective strategy is to forge closer ties with channel partners.

When it comes to the impact channel partners can have on their business, 79% of manufacturing decision makers said channel partners strengthen their brand and 72% said channel partners drive significant market share.

Channel partners encompass a broad spectrum of businesses that market, sell, and distribute manufacturers' products to end customers. These can include distributors, retailers, ecommerce platforms, and direct-to-consumer channels. Historically, manufacturers have maintained a more hands-off approach to channel management, but the trend is shifting toward greater manufacturer involvement to improve these partnerships with technology that provides better visibility, collaboration, and forecasting.

To enhance the coordination with your channel partners, consider these strategies. First, prioritize communication and information sharing. Regular meetings, conference calls, and online portals can facilitate this. Second, develop joint marketing and sales plans to align your goals and ensure a consistent message to customers. Lastly, provide training and support to your channel partners to equip them with the knowledge and skills they need for success.

Manufacturing companies are realizing the potential of investing in manufacturing service and aftermarket strategies. In fact, 26% of manufacturers say they're completely overhauling their service and aftermarket operations. By focusing on delivering service experiences that increase customer satisfaction and loyalty, manufacturers can differentiate themselves from the competition and drive growth.

A key part of this strategy is to embrace digital transformation and use innovative technologies to impact customer service. Technologies like connected assets that couple CRM data with telemetry data help manufacturers unlock peak asset performance with intuitive visualization, predictive maintenance, and optimization. With this information, manufacturers can predict upcoming maintenance needs, ensure one-visit resolution, boost customer satisfaction, and drive revenue growth.

For example, connected assets allow asset support specialists to have all the information related to an asset at their fingertips, including service milestones, order date, service orders, sensor data, and overall metrics associated with an asset. An AI-generated summary of the asset can help guide the support specialist with steps on how to proactively handle service alerts and recommend service campaigns related to a particular customer’s asset.

Service-oriented investments empower manufacturers to offer real-time support, predictive maintenance, and remote monitoring. By using digital twins and advanced analytics, manufacturers can proactively address potential issues, reducing downtime and optimizing product performance. Manufacturers are also exploring new opportunities to collaborate with third-party service providers, expanding their expertise and ensuring comprehensive customer coverage.

The manufacturing industry is in the midst of a technological revolution, and there are several disruptive technologies that offer opportunities for the industry:

• Internet of Things (IoT): IoT enables interconnected devices to communicate and share data, leading to smarter and more efficient manufacturing processes.
• Manufacturing Artificial Intelligence (AI) and Machine Learning: These technologies are driving predictive maintenance, quality control, and process optimization, resulting in reduced downtime, improved product quality, and efficiency.
• AI Agents: Intelligent systems that can understand and respond to customer inquiries without human intervention. AI agents and humans can work together to drive greater efficiencies across manufacturing organizations.
• Real-Time Data Analytics: Real-time data analytics provide actionable insights, enabling manufacturers to make informed decisions quickly and improve operational efficiency.
• Personalized Manufacturing (3D Printing): This technology is revolutionizing prototyping and production, allowing for rapid and cost-effective manufacturing of complex parts.
• Augmented Reality (AR) and Virtual Reality (VR): AR and VR are being used for training, maintenance, and design, improving safety and efficiency in manufacturing environments.

Embracing disruptive AI and data technologies is no longer a "nice-to-have" but a "must-have" for manufacturers seeking to thrive in the dynamic and competitive manufacturing landscape.

The manufacturing industry is in a state of constant evolution, and to thrive, manufacturers must be agile in the face of new challenges and opportunities.

As more regulations are put in place and manufacturers work to decrease their carbon footprint, the industry sees the call for sustainability. In response, 82% of manufacturers have decarbonization/emission reduction initiatives in place.

Agility is also necessary for manufacturing companies when it comes to the supply chain. Sixty-seven percent of manufacturers have experienced supply chain disruptions since 2020, and the 59% say these disruptions persist to some degree today. The globalization of supply chains is another significant trend impacting the manufacturing industry. Sourcing materials and components from around the globe can lead to cost reductions and increased efficiency. However, this also presents challenges, such as managing complex supply chains and navigating diverse regulatory environments.

The manufacturing industry is on the cusp of a transformative era. By embracing digital transformation, aligning sales and marketing initiatives, improving channel partner coordination, and leaning into agility, manufacturers can stay ahead of the curve and thrive in the competitive landscape.