By Wasana Nadeeshani Sellahewa
(Commonwealth) _ Responding to supply chain disruption by exploring in-sourcing and direct-to-consumer models; using mergers and acquisitions as an opportunity to reevaluate and modernize their software ecosystem; and more, if there’s a unifying theme for the manufacturing industry heading into 2023, it’s turning challenges into opportunities. In this blog article, we’ll talk about our forecasts for the main manufacturing trends of 2023, as well as how manufacturers may capitalize on them.
We’ve all heard about the Great Resignation, in which thousands of people willingly left their positions in search of better compensation, working conditions, and work-life balance.
This phenomena has taken a heavy toll on the industrial industry, with The Washington Post estimating a roughly 60% rise in resignations compared to pre-pandemic levels. And, if recent stories are to be believed, the Great Resignation isn’t finished yet: One in every five employees says they are “very likely” or “very likely” to change jobs within the next year. The general status of employment in the industrial industry complicates matters even further.
Given the present status of the employment market, prospective manufacturing employees have more leverage than ever before, which they are utilizing to drive manufacturing businesses to develop better workplace environments. From better compensation and flexible hours to career possibilities and workplace wellness initiatives, manufacturers are rapidly implementing new programs and regulations, and even changing how they operate operations, to accommodate employees. The ultimate objective is not just to recruit fresh talent in a competitive job market, but also to maintain their present employees by assisting them in achieving a healthy work-life balance.
Speaking of health, when employees return to the office and suppliers start in-person visits, it remains a major focus for manufacturers everywhere. Despite the fact that many COVID-related limitations have been abolished, we anticipate manufacturers to continue to highlight the significance of thorough sanitization and to constantly monitor who enters and departs their facilities. In 2023, firms will continue to outsource facility maintenance and administration, reclaim internal equipment data from original equipment manufacturers (OEMs), and demand greater openness from suppliers.
In the past, a manufacturer’s relationship with its customers was at best superficial: a customer would buy a piece of equipment and, once the sales process and final installation were completed, only interact with the manufacturer again when they needed repairs or were interested in purchasing another piece of equipment. Customers today demand near-constant access to and regular contact with businesses and, rather than making a one-time purchase, prefer to pay just for what they require on a recurring basis. Though this shift in expectations presents certain issues for producers, it also opens the door to new options, such as Product as a Service.
Product as a Service Servitization, also known as PaaS, is a business model in which manufacturers lease (rather than sell) equipment to clients and/or provide a list of subscription-based value-added services. Customers profit from this arrangement by only paying for what they require, receiving additional assistance from OEMs, and obtaining access to a new set of value-added services that help improve operations.
Manufacturers stand to benefit much more. Product as a Service signifies a move from selling equipment as a capital investment to an ongoing expense model, which means that instead of processing a series of one-time transactions, manufacturers now enjoy recurrent revenue. The possibility to expand aftermarket value streams and generate income throughout the equipment lifespan is only half the motivation.
Predictive maintenance has been at the forefront of manufacturing for some time now, and while it remains an important manufacturing trend for 2023, it looks a little different than it has in the past. Instead of predictive maintenance, manufacturers are in the early phases of implementing predictive resolution.
Whereas predictive maintenance employs data analysis to discover irregularities in equipment performance and pinpoint their fundamental cause, predictive resolution takes this concept a step further by providing professionals with advice on how to address such issues with more assurance. In simple terms, predictive resolution enhances the possibility that an issue will be adequately resolved on the first try, allowing manufacturers to improve equipment efficiency, cut costs, and improve their first-time repair rate.