How Manufacturing will Change in 2023


The pandemic led to major disruptions in manufacturing and the industry is still navigating an economic climate of uncertainty. Don’t let your competitors get ahead by better preparing for what the year has to offer. Although it is impossible to know the future, research does point to a few things we can expect in 2023. Here are our top four changes to anticipate for this year.  

More Outsourcing Could Lead to New Opportunities

In 2023, companies are looking to reduce operating costs and focus their efforts on what they do best. For some, this means outsourcing their manufacturing needs. Peloton is a prime example of this from 2022 with their decision to outsource all of their manufacturing operations. Peloton isn’t the only company that has turned its interest to outsourcing. The 2022 State of Manufacturing Report indicated that nearly 50% of surveyed companies increased their outsourced manufacturing that year. About 75% of the respondents also said that they positively view outsourcing for its quality, efficiency, speed, and pricing benefits. This year, we could see more organizations simplifying their business processes by outsourcing to manufacturers that earn their trust. For manufacturers, developing a partnership with a major company to handle their manufacturing needs could be a game changer. With many potential opportunities entering the global marketplace, manufacturers should be ready with a plan to scale their operations as needed to outmaneuver the competition. Companies will want to know how you can navigate potential supply chain disruptions if they are going to put their confidence in you.

Greater Supply Chain Management

As we mentioned, supply chain management continues to be one of the most important challenges for manufacturers to handle in the coming year. 71% of global companies said raw material costs were their number one supply chain threat for 2023. Supply chains have become more stable since the start of the pandemic but issues like global tensions, extreme weather conditions, and inflationary pressures all have the potential to upset the delicate ecosystem of supply chains. Manufacturers with resilient supply chains are better prepared to combat disruptions and high prices, instead of reactively scrambling to find solutions partway through the year. But how is it possible to create a resilient supply chain? Increasing your supplier pools is one way, as long as you continue to foster trust with your suppliers. Some manufacturers are reshoring, including moving more of their operations back to the U.S. There is validity to this approach, but it does take time to set up and can potentially impact output and profit margins. Particularly in the coming years, contingency planning will be important for prudent manufacturers who want to support their customers regardless of the circumstances. This requires increased visibility into their supply chains, as two thirds of global business leaders see a need to increase visibility into their supply chains in order to maintain operational stability going forward. Supply chain visibility is only possible when the right software is properly implemented. As ERP experts who have deployed thousands of solutions for manufacturers, Datix knows how to bring transparency to supply chain management and operations overall. Learn what Datix can do for you.

Increased Use of Digital Manufacturing Tools

To respond to supply chain and operational concerns, more manufacturers are likely to turn to digital tools. This shift towards digital, often cloud-based, technology gained momentum last year and is likely to continue into the foreseeable future. As we said, supply chain visibility and analytics is a huge issue, but manufacturers are also looking for greater automation for warehouse and operational tasks to increase efficiency. Providing a seamless user experience is also a priority goal, pointing some manufacturers towards an integration to unite their platforms under a single system (learn how an integration saves you time and improves employee collaboration). Digital strategies are likely to be a differentiating factor for companies in 2023 as KPMG found that 60% of surveyed companies plan to invest in digital technology to improve their supply chain processes, data synthesis and analysis capabilities. If you know you need to increase your organization’s productivity, Datix can help. Our software experts will work closely with your team to understand exactly how your business works so we can provide a software solution that maximizes your operations.

A Focus on Cybersecurity

Across industries, cybersecurity is a pressing concern for manufacturers, consumers and the government. On March 2, 2023, the Biden administration released the National Cybersecurity Strategy to outline fundamental shifts they would like to see to increase safety. One of the main points of the plan is to shift responsibility for cybersecurity away from individuals, small businesses and small government and onto major tech firms. That said, companies still need to prioritize cybersecurity because public opinion holds them accountable: experiencing a security breach breaks customer trust for years to come and is a huge drain on company resources to resolve. However, the Biden administration’s view does point to the significance of choosing the right vendor and consultant for your software and infrastructure. If the system you are using is full of weak points, strong businesses processes alone cannot save you from a cyberthreat. If you need a plan for managing cybersecurity, look to Datix. With 25 years’ experience in software solutions, we understand how difficult it is to find and utilize the right technology for your organization.

Wrap Up

2023 is likely to hold some surprises and industry changes, but the fundamental principles of how to be a successful manufacturer remain the same. By utilizing the right systems and partnerships, your organization can continue to grow.

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