Predictions in Manufacturing for 2018 and Into the Future
The famous baseball manager Casey Stengel once said,
Never make predictions, especially about the future. So we’re not going to. We’ll leave that to the experts.
As we enter the new year of 2018, we’re listening to what the movers and shakers in the manufacturing world have to say. Why do you want to read this list? It may just change the way you are currently operating business in order to stay competitive.
According to IndustryWeek:
By the end of 2018, over 50% of manufacturers will be building Internet of Things (IoT) technology into the design phase of their products.
(Check out our blog IoT for Manufacturing: Tips you can borrow from GM, GE, Boeing & HP)
By 2020, most manufacturers will earn over half of their revenue from services.
A large number of manufacturers are shifting to a more service-centric business model or “servitization.” Servitization is a way for manufacturers to add capabilities to enhance their overall offerings, in addition to their products.
American Machinist predicts:
By 2019, the hype around 3D printing will be over and the real benefits will be blooming.
A new generation of 3D printing companies is moving into manufacturing with new, faster, better-connected automated systems that reduce some of the time-consuming pre and post-processing that have been obstacles to wide-scale uptake.
The Boston Consulting Group predicts:
- Spending on robotics is expected to reach $87 billion by 2025, $24.4 billion of which will be in the industrial sector. This automation will help manufacturers achieve new levels of precision, productivity, and safety beyond the ability of humans.
IDC Manufacturing Insights expects:
- By the end of 2019, 50% of manufacturers will be collaborating directly with customers and consumers regarding new and improved product designs through cloud-based crowdsourcing, virtual reality, and product virtualization, thus realizing up to a 5% year-over-year increase in revenue.
- By 2020, global manufacturers deploying blockchains for product design and service delivery will have improved new product introduction cycles by up to 30% and will have increased service contract sales by up to 25%.
According to ThomasNet:
- Going green is going viral. The move toward sustainability isn’t going away. Companies will continue to benefit from tax incentives promoting green efforts, and eventually, this will be a matter of compliance.
- Work is coming back as America embarks on reshoring. Manufacturing is now seeing a resurgence of U.S.-based operations as companies increasingly seek the assurance of doing business with suppliers on domestic soil, with stricter quality and safety standards in place. Reshoring also allows for lower costs, easier communication with suppliers, and closer proximity to actual worksites, allowing for better oversight and quicker fixes as needed.
With the Industrial Internet of Things (IIOT) comes mountains of data from all the sensors, equipment, and platforms. Companies who want to succeed will need to determine what data will inform and assist them in developing actionable steps to improve processes and production and, subsequently, how to share relevant information via dashboards and other forms across the enterprise.
For manufacturers, the future is already upon us. Manufacturing apps are more usable, flexible, and configurable to any organization’s needs. Discover how manufacturing software designed for your industry can transform how you grow your manufacturing operations. Contact us today at The Lake Companies, where we work with proven technologies that are designed to grow your manufacturing business.