Manufacturing: The Backbone That Needs Some Adjusting

Manufacturing: The Backbone That Needs Some Adjusting

Manufacturing is the backbone of many economies and a critical piece to the intricate puzzle that is the world economy. With headlines ranging from economic slowdowns to trade wars and even possible recessions looming, there is plenty for leaders within manufacturing to think and consider when driving their business forward.

At Pontoon, my team - focused on the Manufacturing and Industrial segment - keeps a close eye and ear to these headlines and understands what makes companies in this industry tick and what might keep their leaders up at night.

As this industry continuously evolves and is at the forefront, in many cases, of what and how things are created in the future, talent will come into play even more then it has in the past. Gone soon are the days of the warehouse worker doing the repetitive task day in and day out and in its place a more technical and strategic workforce that will drive this global industry forward.

Below are 3 key trends we see shaping this “backbone” industry around the world and the talent that will drive it into the future:

Digital Design, Simulation and Integration (DDSI)

We are seeing car manufacturers leading the way in DDSI in their everyday business. From automating design and optimizing their plant layout and flow to product design and testing using 3D modeling and simulation technologies. The DDSI market is predicted to increase to over $45 billion in 2021.

An example of how this is changing the game with automakers – those that switch from 2D to 3D CAD have realized a 20% reduction in design time, allowing them to reallocate time, money and resources to other areas of innovation within their manufacturing operations.

The question and challenge we see for automakers and others that move to more DDSI is having the right talent in place to run and operate these technologies. A shift to more graduate and technical talent along with the upskilling of long-standing existing workforce within the industry will be critical for automakers and others to stay ahead in their markets.

Robotics

No, robots aren’t taking your jobs, they’re just shifting the way a manufacturing worker works. We are seeing more and more “co-boting” especially in aerospace manufacturing. Co-boting is when robots and people work side by side to increase product quality and yield rates, reduce operating costs and increase product performance - all ultimately to improve quality and time-to-consumer delivery.

Spending in advanced robotics is anticipated to rise to over $225 billion by 2021. The aerospace industry of old is no longer with some of the big players quickly realizing that their time-consuming and repetitive assembly tasks could be done by advanced robotics, ultimately increasing their monthly production. Lockheed Martin, for example, is now producing almost 12 F-35 aircrafts per month as opposed to the 3 per month they were producing prior to introducing advanced robotics into their assembly. 

The upside of advanced robotics is huge in manufacturing, but with change always comes questions. The change management needed to keep manufacturing team members engaged and understanding their role in the future of the company is critical. Communication, communication, communication – from leadership all the way down to assembly team leads – is essential to keep this workforce engaged. Upskilling and reskilling opportunities can also drive increased engagement through this transformational time ensuring you keep the knowledge of your workforce while still investing in the future.  

Advanced Analytics

Spending in Advanced Analytics globally is also predicted to grow significantly in the coming years reaching $232 billion by 2021. We see advanced analytics as a critical component to manufacturers that have a data-led approach to their production.

Advanced Analytics compiles data from across the plant floor and analyzes it to create Manufacturing Intelligence. This information is then used to improve product quality, reduce production delays and improve time-to-market for many new products.

With new ways of working, like Advanced Analytics, comes the need for new talent to run these pieces of your business. We are seeing more and more manufacturers hiring roles like data scientists and BI specialists to serve this component of the business. Many manufacturers are still using their old EVP to attract this new talent though – a deep look at the value and culture of your organization is critical as you move to transform and align the correct market message that will attract and retain the talent of your future organization.


As always change is unpredictable and sometimes difficult, but as I speak with the more and more manufacturing leaders from around the globe, I’ve realized that these leaders don’t have a crystal ball, but what they do understand is that change is good and you either lead the change or follow your competitors. Hopefully the above will help you lead this change and make the right adjustments to your business.

What are you seeing in your business and market? Are the above points ringing true for you and your company? Always happy to hear from others – let me know in the comments below.

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