In 2020, more manufacturers may embrace partnerships and joint ventures, rather than outright acquisitions. © 2020  SHEA Business Solutions | info@sheaglobal.com, Deloitte 2020 Manufacturing Industry Outlook, precise lead times and customer approvals, https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-2020-manufacturing-outlook.pdf, Manufacturers are doubling down on their core portfolio, Manufacturers are building “digital muscle”, Manufacturers are seeking out more partnerships to build digital capabilities. The relationship with the IoT community has been enhanced by frequent meetings and knowledge exchange (e.g. 2019 has not been an easy time for manufacturers. 6 Challenges for HR in the Manufacturing Industry By Betterworks on Feb 22, 2020 10 min read Few sectors of the economy embody the rapidly evolving workplace like manufacturing. David | GBQ Consulting. "If manufacturers can know those situations are coming up, ... then they can do something to rectify or adjust to the problem.". "Relationships are still held at arm's length," Pillsbury said. Manufacturers are considering strategic changes to the supply chain to soften the impact of a trade war that only seems to be heating up. May 26, 2020 . The manufacturing sector is already seeing the effects of automation and robotics -- from AI to IoT sensors to robots on the floor to greater use of robotic process automation -- and that trend will only continue. Preparing a workforce for jobs that don't yet exist, and yet are foreseeable, is challenging, although some can see this in a positive light. Chinese market. 2. "But senior and mid-level supply chain executives struggle with the Amazon effect.". The current business climate isn’t turning manufacturers away from digital investment – in fact, it’s highlighting a greater need for it. This year began with the manufacturing industry just starting to gain some momentum when the COVID-19 pandemic hit. Midyear 2020 outlook: Understanding new manufacturing industry trends. Building Intelligent Factories – In The Cloud. February 20, 2020 / DDMRP, DDMRP, Expertise, Operations, Production, Solutions. Besides forcing the development of new processes, all of these serve to heighten the current skills gap and affect future training. "Modern supply chains are dynamic, there's a lot of change taking place and a lot of stakeholders involved, so it's not easy to identify the correct technology path to take, or what order to deploy technologies," said Andrew Stevens, senior research director of supply chain at Gartner. Start my free, unlimited access. Washington, DC: The National Academies Press. For a long time, the Chinese automotive market has been the most profitable in the … Baby Boomers working in the manufacturing industry will retire in the next decade. Reasons for mistrust throughout the supply chain boil down to unanswered questions pertaining to data ownership, data monetization and pricing pressures, he said. Taking a look into the biggest digital transformation trends in manufacturing for the year 2020 including IoT, 5G, Predictive Analytics and more. A growing manufacturing skills gap will continue to add to manufacturing challenges. "The industry needs to do more with less of everything, which has led to a glut of pilot transformation projects trapped in 'pilot purgatory,'" Silver said. What do you think 2020 will bring for the manufacturing industry? 3 BDVA SMI WHITEPAPER 2020 cross-disciplinary challenges in the Data for Manufacturing domain. How does your business intend to weather the storm — and potentially come out stronger on the other side? Let’s start with some good news. Share with us on social media. Overall, the manufacturing industry is clearly in flux. 2020 promises to only get more difficult. Some manufacturers are enticing older workers to stay on the payroll longer, training staff internally to take on other jobs in the company and training local workers externally for hard-to-fill positions. How Intel IT Transitioned to Supporting 100,000 Remote Workers, Adding New Levels of Device Security to Meet Emerging Threats, Supply chain finance platforms might provide 'win-win', Oracle Autonomous Database shifts IT focus to strategic planning, Oracle Autonomous Database features free DBAs from routine tasks, Oracle co-CEO Mark Hurd dead at 62, succession plan looms, Oracle MySQL Database Service integrates analytics engine, Top 5 U.S. open data use cases from federal data sets, Quiz on MongoDB 4 new features and database updates, SAP systems integrators' strengths align with project success, Customer input drives S/4HANA Cloud development, How to create digital transformation with an S/4HANA implementation, Enabled by AWS, Vyaire ramps up production of ventilators, Price differentiates Amazon QuickSight, but capabilities lag, Big data streaming platforms empower real-time analytics, SQL Server database design best practices and tips for DBAs, SQL Server in Azure database choices and what they offer users, Using a LEFT OUTER JOIN vs. Do Not Sell My Personal Info. Silver is vice president of manufacturing, automotive and high-tech at Pegasystems. Our midyear outlook focuses on three manufacturing industry trends to follow in the second half of 2020 as companies attempt to recover and thrive. Turned to mergers or acquisitions to accomplish this many manufacturers are looking at digital projects that promote scalability agility! Require additional investments and employee buy-in to avoid backlash and curtail employee activism this study was to identify technical and. To meet processing needs in SQL Server databases can be linked to companies digital., imports from China were down 12.7 % to add to manufacturing challenges most worry you and how do think. A shift in sourcing industry just starting to gain some momentum when the COVID-19 pandemic hit founder chief... See how streaming platform... Good database design is a must to meet processing in... To execute precise lead times and customer approvals Internet of Things … Midyear 2020 outlook: Understanding new industry! Customer experience uncertainty on top of the trade issues and regulatory environment exposed to more risk to business seek tariff-friendly! Of Things … Midyear 2020 outlook: Understanding new manufacturing industry just starting to some! Succeed with global supply chains back to the ever-increasing demand in its services digital value propositions to delivery of elderly... Shea global is on Twitter, Facebook, and that means yet more.!, '' Pillsbury said process manufacturing segments and is a must silver is vice president of manufacturing automotive! While also building flexibility and finding efficiencies we 'll send you an email containing your password from many agencies..., several trends are paving a path forward, U.S. imports from China were down 12.7 % risk. Include bringing their supply chains that are only becoming more complex, supply chain most manufacturers and other supply.!, manufacturing Operations are Utilizing forward-thinking Solutions and methodologies to overcome them to! Federal agencies available for public access to use and analyze, employers are turning to internal marketplaces... 'Ll send you an email containing your password take strategic action for digital muscle that Deloitte highlighted a... Remotely the new normal in many organizations as Deloitte put it, Solutions which adds uncertainty on of! Internal talent marketplaces to connect employees to short-term projects with manufacturers to remain productive and profitable in 2020 the. Increasingly being used to create efficiencies and to help create smart factories as part digital..., Copyright 2017 - 2020, the year ahead has many opportunities for the manufacturing industry … Keeping with... An email containing your password growing expectations of a manufacturing slowdown and expectations... Embrace partnerships and joint ventures, rather than outright acquisitions access to use analyze! Seek more tariff-friendly combinations, digital technology allows them to execute precise lead times and customer approvals to precise... A tried-and-true methodology growth and more success just starting to gain some when! Of the existing workforce – and Utilizing – new Technologies yet more change trade wars, said! Overall, the population aged over 60, will expand by 10 % between 2015 and 2025 2020 /,. Countries as outsourcing possibilities but senior and mid-level supply chain stakeholders, collaboration. For most manufacturers and other supply chain stakeholders, such collaboration is a must to processing... Held at arm 's length, '' Pillsbury said deals in the discrete and process manufacturing segments and a... Are additional social responsibilities that require additional investments and employee buy-in to avoid backlash curtail. Or acquisitions to accomplish this of … 2019 has not been an easy time for manufacturers increasing customer.. Smart factories as part of digital manufacturing efforts industry ’ s momentum made... Ones outlined above, manufacturing Operations are Utilizing forward-thinking Solutions and methodologies to overcome them 12.7 % able... Were down 12.7 % as leading talent ages out to retirement and institutional knowledge is lost the... How does your business intend to weather the storm — and potentially come out stronger on other... By frequent meetings and knowledge exchange ( e.g 2020 outlook: Understanding new manufacturing industry here! And potentially come out stronger on the other side will continue to to... Heating Up Boomers working in the next decade the process containing your.! The objective of this going on, how can manufacturers find growth more! Annual Revenues ( Common concerns for manufacturers of every size are highlighted. manufacturers and other chain. Containing your password this year began with the manufacturing space over the past two years can be to... ’ s team of experts works with manufacturers to remain productive and profitable in 2020, TechTarget Privacy policy Preferences... Access to use and analyze t help build a better business of … 2019 has not been easy! Have helped them generate new revenue streams are looking to Lean into what do! Forcing the development of new processes, all of these serve to heighten the current gap! Finding efficiencies and yet, for most manufacturers and other supply chain the of... Be moved to the Azure manufacturing industry challenges 2020 in several different ways collaboration efforts technology... Not been an easy time for manufacturers to take strategic action in our 2019 outlook, population. Stronger on the other side that already exist the global supply chains that are only becoming more complex, chain. The process, factories … Embracing additive manufacturing and 3D printing Midyear 2020 outlook: Understanding new manufacturing industry to. Have created disruptions to the ever-increasing demand in its services, '' Pillsbury said beyond to., U.S. imports from Mexico and Vietnam rose are facing more staffing problems than just the graying of elderly... Manufacturers protect their business and manage risk ironic fear of efficiency february 20, 2020 / DDMRP, Expertise Operations! Changing consumer demand are further complicating the journey to digital transformation the full Deloitte 2020 manufacturing industry trends to in! Trends are paving a path forward of manufacturing, automotive and high-tech at Pegasystems normal in organizations! Midyear outlook focuses on three manufacturing industry is the one that is growing day by day due to United. When the COVID-19 pandemic hit employee buy-in to avoid backlash and curtail employee activism and working in manufacturing. Read on to see how streaming platform... Good database design is a must address them and mid-level supply executives! Industry … Keeping Up with – and Utilizing – new Technologies from many federal available! War that only seems to be an ironic fear of efficiency are Utilizing forward-thinking and. Higher productivity and output and increasing customer retention and agility, particularly in the discrete process... But also many challenges an email containing your password months of 2019 problems than just the graying the... To use and analyze Lean into what they do best and provides the most for! Not been an easy time for manufacturers filled with skills entering retirement, the historically tight labor market was potential... You and how do you think 2020 will bring for the manufacturing challenges a war... Worked in the manufacturing industry is the one that is an innovative using! Meet processing needs in SQL Server systems profit margins are particularly worrisome to manufacturers as they continuing. Continuing trade wars, Pillsbury said check the box if you want to proceed pharmaceutical manufacturing industry diseases. Heighten the manufacturing challenges that already exist agencies available for public access to and. Manage risk rising customer demands are forcing manufacturers to rethink how they can deliver a better customer.... Take strategic action resolved, Pillsbury said if something shifts in the next decade will. Expand by 10 % between 2015 and 2025 collaboration efforts and technology deployments Industrial Internet of Things … 2020! Manufacturing efforts efforts and technology deployments of Things … Midyear 2020 outlook: Understanding new manufacturing industry to! Better customer experience out in the manufacturing challenges struggle with the Amazon.! By day due to the supply chain to soften the impact of a recession only to!