Manufacturing’s Automated and Digital Future

Resiliency has been the theme of the manufacturing sector in 2022 and will carry into 2023. The year fostered a renewed optimism about manufacturing, which included the reshoring of operations at new highs.

An important component of this resiliency has been the embrace of the Industrial Internet of Things to overcome skilled labor shortages. According to the blog post “8 Key Takeaways from IMTS 2022”: The automation theme pushed into new territories such as automated in-process inspection, “automated data solutions for quality control, and fully integrated production environments for complete part manufacturing that minimizes the need for human intervention at every turn.”

What’s more, the ease of use of these new technologies is front and center to ensure manufacturers know how to make full use of the developments and innovations. “This becomes increasingly critical as more shops seek automated solutions in the midst of serious skilled labor shortages,” according to the blog post.

2023 Will Continue to Usher in Digital Connections

The digital transformation of the manufacturing sector is gathering steam, according to the summary of “IMTS 2022: 11 Key Takeaways” recently released by ABI Research. “No matter the trend that is driving the need for change, it is happening,” wrote Stuart Carlaw, Chief Research Officer for ABI Research. “The dominant trends might change and differ, but the underlying benefits of digitization that afford the flexibility to address future issues at the same time as addressing real world issues of today will mean that any investment now will likely bear future unseen benefits in addition to immediate impact.”

And while there are alarms, there are promising indicators. Companies continue to collaborate with their supplier partners to overcome setbacks, be it labor shortages, kinks in the supply chain, or concerns with inflation. Utilizing the latest software, automation/robotics and ever-improving processes such as additive manufacturing, metalworkers are holding steady. The Precision Metalforming Association’s September business conditions report found members expect little change in business conditions during the next three months and report a rebound in average daily shipping levels.

Further, the Institute for Supply Management (ISM) reported the manufacturing sector grew in September, achieving a 28^th consecutive month of growth at 50.9%, which was 1.9 percentage points lower than the previous month’s 52.8%. ISM’s Report on Business panelists reported: “slowed hiring activity; month-over-month supplier delivery performance was the best since December 2019; prices growth slowed notably (with the index at 60 percent or lower) for the third consecutive month; and lead times continue to ease for capital equipment and production materials,” said  Timothy R. Fiore, CPSM, C.P.M., and chair of the business survey committee. “Markedly absent from panelists’ comments was any large-scale mentioning of layoffs; this indicates companies are confident of near-term demand, so primary goals are managing medium-term head counts and supply chain inventories.”

ISM also reported that of the six largest manufacturing industries the organization tracks, four of them registered moderate-to-strong growth, including: machinery, transportation, food and beverage, and computer and electronic products.

As we approach 2023, the metalworking industry has been and continues to be proactive when it comes to dealing with labor challenges through the implementation of automation and digitalization in their processes. It’s an exciting time to be part of the industry.

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