Although the global manufacturing environment has experienced a significant slowdown over the past few years, the outlook looks right. While manufacturers, retailers, and general consumers continue to grapple with the harmful effects of runaway inflation, supply chain disruptions, political instability, and other negative factors, there are various positive signals that seem to point to a more robust and hopeful outlook for the manufacturing industry.
The most effective way to gauge the trajectory of the global manufacturing industry is to keep an eye on the most critical and relevant manufacturing trends. These are constantly evolving but offer the most useful insights in this arena.
In this post, we’ll strive to shine a light onto some of the most compelling emergent trends in the manufacturing industry, highlighting the elements that will impact manufacturers, retailers, and consumers alike for better or worse. The goal of this investigation is to equip you with the insight you need to optimally shape your operational strategies for the coming years.
Artificial Intelligence and Generative AI
Everyone has heard of artificial intelligence and its potential to revolutionize the way we work, play, learn, communicate, and socialize. The question for manufacturers is how this powerful new tool can be leveraged.
Within the general manufacturing and fastener industry, AI initiatives have a place within the future digitization plans of most organizations. All the excitement notwithstanding, the deciding factor as to whether artificial intelligence will be a permanent fixture in the industry or not will be its ROI.
If artificial intelligence solutions prove unable to show tangible positive results. What makes AI so tantalizing to manufacturers is that it has already proven its value in various industries, and it promises to continue making incredible advances in complexity and capabilities.
Supply Chain Evolution
The COVID-19 pandemic exposed fatal flaws in our global supply chain, and even after things went back to normal, manufacturers are still seeking ways to optimize their
supply chain, manufacturing operations management, and logistics operations. Some of the most pernicious problems facing the global supply chain include:
- Labor challenges: Labor shortages and strikes in crucial sections of the supply chain such as the U.S. docks (Gulf and East Coast) and the diminishing pool of truck drivers and warehouse workers.
- Shipping delays: Challenges to shipping routes, such as Houthi attacks in the Red Sea, dropping water levels in the critically important Panama Canal, and other geopolitical upheavals are forcing shipping companies to reroute or lessen global shipping.
- Policy changes: In the aftermath of the presidential elections that took place in the United States, it’s important to note that more than 70 other countries across the world also held their general elections in 2024. · Heightened input costs: According to the NAM outlook survey for 2024, it’s expected that the cost of raw materials and wages that manufacturers face will continue to increase as we move into the next year
Manufacturers are shifting their focus to new approaches to tackle these issues, such as incorporating supply chain planning software, logistics simulations, and intensified collaborations across the board.
Clean Technology in Manufacturing
While global purchase indicators seem to indicate a cooling down in the demand for electric vehicles, the long-term manufacturing trend line is still holding hope for future sales. Auto manufacturers worldwide are still investing massively into EV production, especially with the efforts taken by various governments to incentivize eco-friendly transport alternatives. Additive manufacturing is one of the proposed approaches geared toward making greener, safer products.
Advanced Talent Management
In the manufacturing industry, the balance between labor supply and demand is of critical importance. When producing complex and delicate components such as sustainable aerospace fasteners, the cost of labor goes up commensurately.
The issue is compounded by the fact that America has an aging population in combination with the challenges of reliable transportation, childcare access, and so on for regular workers. The UKG Workforce Institute estimates that it takes anywhere between ten thousand to forty thousand to replace a worker.
One of the key goals of effective talent management is the reduction of labor turnover. In the same way that fastener trends are always evolving and adapting to new technologies and approaches, talent management philosophies are also undergoing incredible evolutions.
With the advances being made in AI and digitally-assisted management tools, we can expect to see massive changes in the very near future.
Implementing Smart Operations
Back in 2023, the global manufacturing trends pointed to 5G technology, general AI, and cloud computing being the three technologies offering organizations the greatest returns on investment. This reality has not changed, and seems to be growing even stronger, with bleeding-edge applications such as extended reality (XR) coming to the fore.
Some promising practical applications to look forward to including business scenario simulation, process simulation, casual AI, production line simulation, Unified Namespace data architecture, manufacturing execution systems, manufacturing operations management systems. The beauty of these systems is that they are perfect for application anywhere in the world, which makes them ideal for global manufacturing.
Final Thoughts
Existing legislative actions in the United States such as the Inflation Reduction Act and the planned refocusing on energy production and manufacturing growth that is projected to be top of the government’s agenda in 2025 will significantly influence the manufacturing trends we’ve highlighted above.
As with all projections, the best way to make sense of them is to monitor them closely. As things evolve thanks to rapidly changing technological, social, and political factors, we should also adjust and adapt our worldview to make sense of the world around us if we wish to remain competitive. B&G Manufacturing has spent more than 60 years in the precision parts manufacturing industry and has built up a reputation for excellence, innovation, and dedication. While industrial product manufacturing companies around the world struggle to understand manufacturing trends, B&G Manufacturing prides itself on being a trendsetter, meaning that they will never be caught out of the loop.
Whether you’re in the aerospace and defense, medical, energy, or oil and gas industry, you can rely on our team of experts and specialists to deliver what you need when you need it. Contact us today. You won’t regret it.
Hatfield
