As manufacturers enter 2024, it is hard to know what the future will bring. Economic uncertainty, global conflict, and the presidential election are just a few of the major factors impacting the landscape.
However, even with some much unknown, there are several key trends within the manufacturing industry that companies should recognize. By taking advantage of software solutions, it is possible to respond effectively so that your organization is leading the way forward. Don’t be left behind by neglecting these 2024 manufacturing trends.
Labor Shortages Continue
The struggle to attract and keep labor, especially skilled labor, continues into 2024. The National Association of Manufacturers (NAM) found that almost three-quarters of surveyed manufacturing executives feel that attracting and retaining a quality workforce is their primary business challenge. Without workers, your company simply won’t be able to survive.
Although challenging, there are ways to alleviate and prevent labor shortages through ERP. To respond to labor issues, you need to: 1) understand your labor needs for hiring and allocating talent 2) maximize the workers you do have.
When it comes to hiring, forecasting is key to understanding your labor needs over time based on your anticipated job predictions. A modern ERP like Infor’s CloudSuite Industrial (CSI) can use historical demand data to anticipate future business requirements, while factoring in aspects like market volatility. With the ability to forecast likely outcomes and consider different what-if scenarios, you will have a much better grasp on your labor needs for both the coming months and the coming years.
For both new hires and existing employees, you need to allocate work effectively. Manufacturers frequently misallocate their labor, meaning that the precious skilled workers that they do have are spending their time on the wrong tasks. Labor should be dedicated to high priority work that only a skilled person can do.
With an ERP like CloudSuite Industrial, you gain 360-degree data visibility, allowing you to identify bottlenecks in production caused by talent shortages. To resolve these, you can hire, train or transfer workers so that critical tasks are completed faster. All other tasks should be automated or streamlined as much as possible for maximum efficiency through your ERP.
Labor is a complex issue, but the right ERP solution gives you the tools to face talent shortages head on. If you want an ERP system that simplifies labor management, speak to our consultants. At Datix, we support our clients every step of the way through their ERP journey, from the planning to the implementation, training, and beyond.
Transition to Smart Factories and the Metaverse is Strong
Technology is causing manufactories to rethink how they operate. Deloitte reports that 83% of manufacturers believe that smart factory solutions will transform the way products are made in five years. Still, what does that mean for 2024?
For many, it means moving forward with the transition to Industry 4.0. 70% of surveyed manufacturers have woven technologies such as data analytics and cloud computing into their processes, and nearly half are already harnessing the power of IoT sensors, devices, and systems. With these advancements comes data-based decision-making, extended equipment longevity, and more automation. All of these factors increase efficiency and profits, giving these organizations even more resources to continue with their evolution as smart factories.
When it comes to the industrial metaverse, most surveyed companies have already invested in digital twins, 3D modeling, and 3D scanning, which can serve as key building blocks of the immersive 3D environments.
Combining new technological systems with ERP is key to achieving a smart factory setup. To learn more, talk to our team at Datix. We have implemented thousands of solutions as a one-stop shop, so we know how to take companies to the next level.
Supply Chain Digitization Still a Major Focus
The pandemic was a lesson about the importance of a resilient supply chain. Although supply chains are more stable now than during the peak of COVID-19, shortages and delays remain. To combat this, manufacturers are actively seeking digital transparency. According to Deloitte, 76% of manufacturers are adopting digital tools to gain enhanced transparency into their supply chain.
One of the best ways to transform supply chain management is to take full advantage of ERP. With CSI, you have real-time data and end-to-end visibility to ensure your supply chain is working effectively. Spotting problems before they develop and having the tools to react quickly are critical. For instance, if a supplier tells you that their shipment is going to be delayed, you can react by sending out automated bid requests to other suppliers to get the items you need as quickly as possible. You can also track supplier reliability right from your system, so that you know when it is time to replace a supplier that is consistently unable to keep its delivery times. Navigating supply chains can be difficult, especially when your suppliers need to meet certain compliance standards. For more about effectively managing multi-level supply chains through ERP, read our free e-book.
2024 is going to be a big year for manufacturers. The current trends require companies to be agile and invest in technology if they want to survive. As ERP experts, our team can help you adapt to the challenges and opportunities that the new year brings.
With 25 years of experience, we understand what it takes to maximize an ERP ecosystem. Datix will work with you to understand your unique business needs to support your goals. Our team of experts promises to be by your side throughout your implementation and beyond.