🚀 Shaping the Future - Issue 09

Manufacturing remains a challenging field primarily due to the intricate nature of the products produced. Manufacturers must continually refine their processes to keep up with these changes.

🧠 Think Differently: Continuous Improvement

Industry 4.0’s Mike Yost hosted a panel about continuous improvement. The discussion was centered around the ‘Digital Lean’ Dilemma – where the panel discussed whether the attention on data inadvertently shifts the focus away from people who drive continuous improvement.

Top 5 Takeaways

1. Data is the engine for all things CI. It tells stories that inform, empower, and drive the business to invest resources in the areas with the biggest impact.

2. How people engage with data is shifting – in part from initiatives like Smart Manufacturing (SM). Without an emphasis on the people side of CI, results won’t be sustainable. When it comes to people, make sure to set the right pace because the rate of change is much higher for data than it is for humans.

3. Leadership plays a key role in building trust across functions. IT and OT are just two of the teams that need to work together to problem solve. Leaders should seek out forward-thinkers in their organization and encourage them to bridge the gaps between teams.

4. Smart Manufacturing is making it faster and easier to access contextualized data. Teams spend less time analyzing data and are empowered to use the data to drive real improvements.

5. All good things come with challenges. At its core SM is people, process, and technology – don’t lose sight of the people and process side. If divergent points arise, recognize them and address each one uniquely.

You can listen to the entire discussion below.

📈 Key Industry Trend to Keep an Eye On

A new “reshoring” trend is set to upend global supply chains as firms look to source products — such as clothes and computer chips — closer to home, turning away from manufacturing powerhouses like China.

Reshoring is the process of bringing manufacturing operations back to their home country from overseas locations. This trend has gained momentum in recent years due to labor shortages, supply chain disruptions, geopolitical risks and rising labor costs in overseas locations. Reshoring can provide several benefits for manufacturing companies, including reduced transportation costs, improved quality control and increased flexibility. Additionally, reshoring can help to create new jobs and support local economies.

📚What we’ve read this week

2023 Manufacturing Industry Outlook [Deloitte]

US manufacturing has demonstrated continued strength in 2022, building on the momentum it gained emerging from the pandemic, and surpassing expectations from the prior two years.1 Policy initiatives such as the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) and Inflation Reduction Act (IRA) have the potential to help sustain recovery in the manufacturing industry. Looking ahead to 2023, Deloitte projections based on Oxford Economics’ Global Economic Model anticipate 2.5% growth in GDP in manufacturing.

Manufacturing Is A Career, Not A Job [Forbes]

Manufacturing is no longer just a job. For most people, “a job” describes the type of work that feels like drudgery or a dead end. You do it to pay the bills, but as soon as you find something better, you’re gone. Manufacturing is a true career. In this field, young people can be challenged as they literally invent, produce and distribute the everyday items and technologies of the future. 

6 ways to help the manufacturing sector embrace AI [WEF]

The research shows the huge potential of AI to transform the manufacturing sector and add exponential value. The report concludes: “With a holistic approach, AI can solve some of the most persistent problems in manufacturing and tap into new opportunities that allow companies to increase their operational performance, drive the sustainability agenda and empower the workforce.”

How Smaller Companies Can Bring Manufacturing Closer to Home [HBR]

Manufacturing companies plan to regionalize (parts of) their production with a view to increasing their resilience to external shocks — 43% of respondents already have specific relocation plans. European retail chain C&A, for example, intends to produce 800,000 jeans per year in a German factory, and Walmart has committed to spending an additional $350 billion through 2030 on items made, grown, or assembled in the U.S.

The Value of Data and Human Experience in Manufacturing [Forbes]

The combination of automation and AI in manufacturing is a powerful one and will continue to advance with new technologies. However, until we can create AI that is as expansive as the human mind, people will remain an essential part of the equation. In the meantime, human-machine collaboration, quality data and human ingenuity will remain irreplaceable.

🎤 Upcoming Events

👋 Get Involved

Join the Industry 4.0 Club and be part of our vibrant community, dedicated to shaping the future of manufacturing. By actively participating, you can make a meaningful impact in advancing Industry 4.0 and contribute to reshaping the manufacturing landscape.

We’re always looking for new contributors to share their expertise, experience and spread the word. You can contact us directly at info@industry40club.com with subject like “Getting Involved” and follow us on all social media (LinkedIn & Twitter) or donate to help fund the club’s activities.

 💬 About Shaping the Future

Shaping the Future is Industry 4.0 Club’s official newsletter. We’ll be experiencing different formats over the coming weeks until we find the one that resonates the most with our members. You can help us improve by sharing feedback and suggestions. The newsletter will land in your inbox every Sunday morning; please subscribe to not miss anything and forward the email to someone you think would benefit from this.

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