The production industry in 2024 is explained through a combination of demanding situations and opportunities driven by technological advances, economic uncertainties and converting market dynamics. Despite the obstacles, the focus on virtual transformation, artificial intelligence and operational power offers a promising path for expansion and innovation. .
To gain insights from industry experts on manufacturing direction, Fictiv collaborated with Dimensional Research to conduct a State of the Industry Audit, our ninth annual State of Manufacturing Report. We surveyed more than 178 engineering, supply chain, production and product progression executives across a range of industries, including medical devices, robotics, automotive, aerospace and customer electronics.
We have noted ongoing considerations about emerging global tensions, operational inefficiencies, and ongoing source chain disruptions. Despite the current challenges, however, there is a silver lining: technologies such as artificial intelligence and on-demand production offer efficiencies and a way forward.
Here are three key takeaways from our report that show where the manufacturing sector is headed.
Executives in the manufacturing sector are facing various macroeconomic pressures that have an effect on their business methods for 2024. The most demanding situations are accompanied by economic headwinds such as inflation, interest rates and the threat of recession for 47% of respondents, as well as prices and hard work. scarcity (39%). In addition, a significant number of them express fear about the effect of global economic difficulties.
Given existing global conflicts, industrial wars, and general instability, it is no surprise that foreign tensions are affecting long-term origin chain planning. In fact, 89% of respondents say they are “somewhat” or “very” involved with the option. of an escalation of industrial wars in the coming years, and 86% say global tensions are something included in their strategic planning.
These considerations have merit. President Biden recently announced that the United States would increase the price lists of Chinese products, adding electric cars (from 27. 5% to 100%). We are already hearing reactions from manufacturing industry leaders about the potential impacts.
On the other hand, occasions such as the US presidential election seem to weigh less heavily on the leaders. Only 21% expect election uncertainty to have an effect on the industry.
For the third year in a row, supply chain and origin visibility tops the list of business priorities (54%), followed by resilience and agility (48%), which are now ranked as the second most important priority (up from fourth place last year). ). ). For origin chain managers, tracking parts from concept to prototype to production is simply smart business. After all, how can you correct errors or interruptions if you can’t see them?
Technology is a way for leaders to address those challenges.
Take AI, for example. The excitement generated last year about its potential effect persists, but this year’s data shows that 88% of respondents have already implemented AI in their production and supply chain operations.
Manufacturers are implementing AI in chain operations.
It turns out that the belief is that AI is also critical to good luck (87% say implementing AI “. . . is important to the long-term good luck of my business”). And AI is the time when the maximum effect is cited. in companies’ methods by 2024 (45%) in 2024.
Common implementations include source chain management, product design, quality control, and inspections. In addition, 78% expect AI to hire in the next two years, a potential solution to the labor shortage.
But that’s not all.
Streamlining purchases is another way AI can improve productivity, power, and new product emergence (NPI). More power means more time to innovate. And virtual production is a big component of that. When generation enables efficiencies, your teams can spend more time refining and improving their designs and bringing new products to market.
After 4 years of unprecedented global disruption, our findings imply that manufacturing leaders are more focused than ever on balancing innovation, profitability, AI implementation and productivity issues. The report confirms this, revealing persistent considerations about the global economy and its effects on chain management. .
To meet increasingly ambitious profit and charge targets, upstream groups will need to be agile, find operational efficiencies and use generation to uncover savings opportunities in 2024 and beyond.
Read the report to be more informed.
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