In the midst of a pandemic and changing economic climates, the Manufacturing industry is but one of many that have been affected heavily by these changes. Still, there are many unknowns and lesser-defined topics within a rapidly developing industry. Terms such as IoT, Industry 4.0, Digital Transformation and Smart Factories fill industry talking spaces. You may or may not be familiar with these terms, but with the weight they carry in this industry's landscape, it's worth a read.
A global pandemic has revealed the necessity of such technological advancements in various industries, and in the manufacturing perspective, keeping business and factory floors running in lockdown situations is a priority that cannot be under looked. In PwC's 23rd Annual CEO Survey, many growth projections were scaled back from earlier numbers, accompanied by reductions in revenue growth comparable to that of the 2008 Financial Crisis.
"The COVID-19 pandemic has also exacerbated ongoing issues such as tariff increases, shifting trade policies that impact supply chains around the world, and increasing costs at all levels of the manufacturing process."
- PwC 2020 Annual Global CEO Survey
So what must Industrial Manufacturing (IM) companies do in order to remain competitive?
Adaptation to Changing Demands
In PwC's Survey, it revealed that a huge majority of IM CEOs report operational efficiencies as the main activity for driving growth over the next 12 months. The impact of digitalization in improving business performance is integral in achieving growth, but it was noted that many companies have yet to take that leap towards digital innovation in their enterprise/business.
The solution to a slowing economy and the need to resize enterprises falls to a single factor - Creating "agility" - or a quick responsiveness to challenges that businesses will face on the ground, which consist of:
1) Strengthening Technological Capabilities
2) Reorganizing Global Supply Chains
3) Building a Workforce with Fourth Industrial Revolution (FIR) skillsets
Challenging? Most probably. Impossible? No. Digital transformation is on the rise, and many companies are starting to pick up and ride that Digitalization wave. IM leaders in the field are digitalizing or have already digitalized their operations, adopting specialized toolsets and business models to boost their current processes.
Data is king and having access to your data has become more important than ever. As an SME or a larger corporation, the ability to access your data in real time can be an invaluable competitive advantage. Its role in driving important decision making or giving you the visibility you need to manage various functions in your business is the key ingredient in keeping up with new industry or customer demands.
The future of any industry falls upon its ability to innovate and grow. Here at Arcstone, we provide an array of digitalization solutions to help your business optimize its production operations and provide full visibility over your production. Curious to hear more about how we can help you get started on your digitalization journey in 1 day? Discover more here.