How Manufacturing Trends in 2022 are Evolving

As rising interest rates take hold of the country, labor shortages and supply chain woes continue to loom over manufacturing, its uncommon to find positive economic indicators. However, that’s exactly what happened in 2021 as production exceeded pre-pandemic times. Now that we are 45 days into 2022, all indications show continued strength in orders. In order for that to come to fruition, we looked into what the consulting leaders had to say.

Workforce Shortage

As SIERA.AI reported on November 1, 2021, labor shortage will continue to loom over manufacturers for the near future. In Deloitte’s 2022 Manufacturing Industry Outlook, the consulting firm’s in-depth survey indicates that 38% of executives report attracting new workers is a top priority, followed by retention at 31% and reskilling workers at 13%.

Retail practice lead and managing director, Tyler Higgins from AArete, a consulting firm based in Chicago, IL believes that workers have a strong incentive to be selective in the job openings due to demand for labor being high. It’s a trend that hasn’t occurred in decades.
Even so, Deloitte reports that manufacturers will need to explore ways to be flexible across their entire organization and not just the office workers.

Digital Transformation

Digital transformation continues into 2022 as more manufacturers realize the benefits from the office to the production floor. According to the Deloitte survey, 45% of manufacturing executives believe they will find additional operational efficiency from investments in industrial Internet of Things (IIoT) that connect machines and automate processes.

In a recent press release from IDC (International Data Corp) predicts AI investment is geared towards improving efficiency. These efforts can be the start of developing and enhancing new business models. SIERA.AI customers have shared business insights from captured data on their mobile equipment. They believe the AI technology has transformed everything from maintenance, training, ability to reconstruct an accident, predict accidents and the movement of people.

Sustainability

Although this is not a new topic for discussion, consumers are slowly making change to the ongoing climate threat. In the January issue of Food Industry Executive, the general public’s knowledge of sustainability will cause food manufacturers to replace fossil fuel energy with renewable, electric-based energy. The report also indicates other areas of the food industry sustainable trends will include packaging, reduced water consumption, detergent and cleaning solutions for product and equipment.

Cybersecurity

The threat increases as each day passes. It comes as no surprise that in the Deloitte survey, 82% of manufacturing executives will invest more in cybersecurity by at least 10%. “An expanding attack surface from the connection of operational technology (OT), information technology (IT), and external networks requires more controls.” The challenge remains with legacy systems.

However, Deloitte warns that, “cybercriminals can cause harm beyond intellectual property theft and financial losses, using malware that now ties in AI and cryptocurrencies. They can also shut down operations and disrupt entire supplier networks, compromising safety as well as productivity.”

Summary

All four trends for 2022 are vital and critical to the safety and operations of a manufacturing facility. These trends can be viewed as threats or opportunities to develop competitive advantages moving forward. By adapting change, manufacturers can realize critical gains from safety on mobile equipment on the production floor to the evolution of employees.

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