Challenges and Opportunities in the Global Manufacturing Sector

Pivot International  |   November 09, 2016

Over the past decade, the global manufacturing industry has gone through some major changes – and even more are headed down the pipeline. This has put manufacturers in a somewhat difficult spot, for while they still haven’t fully recovered from the market crash of 2008, they’re having to make highly strategic decisions about how they’re going to move forward in a global market that is changing rapidly – perhaps more rapidly than it ever has before.

Successful manufacturers will be the ones that can embrace these changes. But what does that look like?

Diving headfirst into new technologies

Manufacturing is entering a very exciting phase, as we’re seeing the development of technologies that were almost unimaginable a decade ago.

Nanotechnology, widespread 3D printing, advanced touchscreen technology, robotics and artificial intelligence – all these things are having an effect on how manufacturers operate both now and in the very near future.

Take, for example, 3D printing. As this technology becomes more and more advanced, it can allow manufacturers to reduce costs, improve efficiency, and greatly compress the time it takes to get a product to market.

3D printing can allow manufacturers more flexibility when it comes to lot size, too, allowing them to produce smaller lots in a cost-effective way. Manufacturers that don’t seriously consider how 3D printing can improve their offerings will be left behind, because this tech is already well on its way to becoming mainstream.

The same is true of nanotech and robotics. Manufacturers owe it to themselves to take a hard look at how their factories are working today, and how they can integrate these new technologies.

However, there’s no use in jumping on a tech bandwagon just for the sake of doing so. Manufacturers also need to do the research to ensure that incorporating such technology will actually help move them forward and become more competitive in the global marketplace.

Preparing to serve a larger – and different – consumer population

According to the McKinsey Global Institute’s report “Manufacturing the Future: The Next Era of Global Growth and Innovation,” by 2025 the majority of consumption will occur in developing countries. This not only means that the global consumer population will be more numerous, but also that it will be distributed differently.

Manufacturers that are prepared to serve this population will be able to take advantage of many new market opportunities. The challenge will be figuring out how to balance the needs of these new markets with those of established markets, which are becoming increasingly fragmented.

Cultivating highly skilled talent

As manufacturing becomes more and more reliant on technology, the demand for highly skilled talent will only grow. One of the biggest issues facing the manufacturing sector right now is a shortage of the technicians, developers, and other skilled workers needed to operate the new machines and systems that will differentiate the 21st century factory from the ones of the past.

In fact, according to a Deloitte study, there will be an estimated 2 million unfulfilled factory jobs by 2025. Manufacturers that invest heavily in training, recruiting, and supporting skilled workers can avoid the dire circumstances that a shortage of this magnitude will create.

Manufacturing is facing a time of great challenges, and great opportunity. As the sector evolves, manufacturers that want to remain viable will need to embrace the changes as they come.