Top 9 Manufacturing Trends for 2023

As we head into the new year, we’ll see many manufacturing trends from recent months continue and intensify, as well as the introduction of other developments within the sector. Businesses that take the time to understand and embrace these trends may be able to capitalize on the resulting opportunities.

1. Talent Acquisition and Retention

Like many industries today, manufacturing has been struggling to attract and retain talent. The after-effects of the global pandemic, rising inflation, hybrid and remote work options, and the rapid development of technologies that require new skill sets have contributed to this problem.

More and more manufacturing organizations have reinvested in recruitment and retainment initiatives, exploring ways to offer competitive salaries and benefits as well as the development, environment, culture, and flexibility that younger employees are seeking. 

Finding ways to empower manufacturing supervisors and technicians to make smart decisions through access to quality data can not only increase manufacturing efficiency but can build a culture of accountability and ownership. This often leads to greater employee loyalty and retention.

2. Virtual Testing

Virtual reality technology is continuing to grow in sophistication, and the manufacturing industry will begin taking greater advantage of such solutions to reduce the time and cost of testing expensive and large machinery. 

For example, virtual twin prototypes can be created in lieu of building physical prototypes and can be more easily tested and tweaked for optimal performance before the actual equipment or system is built, saving significant resources and improving overall quality.

Other digital manufacturing solutions are becoming more popular, helping manufacturing facilities to operate more efficiently. Those who strategically embrace these technologies will be a step ahead of the competition.

3. 3D Printing

Another technology that has made significant inroads within manufacturing is 3D printing. In many cases, parts and products can now be created on a computer and simply printed using malleable material instead of being physically built and then assembled. The entire process has become more reliable and inexpensive as the technology has been further refined, giving manufacturers a cheaper, faster, and more reliable method of creating some needed components.

4. Robotics and Automation

Robotics and automation technologies based on evolving machine learning and artificial intelligence developments will continue to play a large role in 2023 manufacturing. In fact, some organizations are creating modular microfactories that can produce a component or specific product using these technologies with very little human involvement.

As these solutions grow in sophistication, it’s likely they will “learn” from their specific manufacturing environment, helping it to continue to grow in performance and efficiency. At the same time, more data will be available to allow management teams to evaluate different aspects of manufacturing in a real-time, accurate light, resulting in smarter long-term business decisions.

5. Nimble Supply Chains

It’s clear that supply chain issues were only exacerbated by COVID-19 and that the pandemic simply revealed persistent underlying supply chain weaknesses in a global environment. Moving forward, it will be critical for manufacturing businesses to develop agile supply chains that can be altered when disruptions occur–whether those disruptions are caused by natural disasters, geopolitical issues, war, or future pandemics.

There is a trend to bring more manufacturing back to the United States as well as an effort to diversify suppliers so a disruption with one vendor can be quickly addressed with another. Strategic, proactive planning can help minimize future supply chain issues, protecting revenue generation and ensuring timely delivery of customer orders.

6. Subscription-based Pricing

For the past decade, the as-a-service model has exploded as businesses embrace subscription-based pricing to guarantee regular revenue for supporting ongoing improvements to a particular service.

The idea of product-as-a-service has evolved within manufacturing, allowing particular customers to pay a monthly rate and access production as needed. While individual contracts may need to be negotiated depending on expected volume, this model can help both manufacturer and customer streamline production and revenue.

7. Outsourcing

Outsourcing has been a proven way to reduce operating costs and help all parties focus and develop core competencies. Individual companies that can focus on producing a particular component or subassembly may be able to offer them at a lower price than a larger facility can produce them in-house.

Selecting the right outsourcing partners where the relationship is truly synergic is important to the success of this model. The main disadvantage of outsourcing is losing overall control of the manufacturing for the outsourced components; be sure you select partners who are delivering products and services that are higher quality and lower cost than you could produce internally.

8. Corporate Responsibility

Consumers are no longer satisfied with a quality product at a reasonable price. Society as a whole has started to demand that companies be socially responsible for everything from environmental issues to supporting their local communities.

As a result, manufacturers are looking for responsibly sourced raw materials, food and beverage producers seek ways to reduce packaging, and organizations are focused on decreasing carbon emissions. In addition, caring for employees, their families, and surrounding communities through monetary support, giving back of time, or creative benefits improve a manufacturer’s image as a responsible and caring corporate citizen.

Manufacturers who take that call seriously will build a positive reputation – not only as a good place to do business with but also as an attractive employer.

9. Asset Operations Management

Manufacturers will increasingly embrace asset operations management (AOM) as the means to centralize maintenance, reliability, and operations. By building such a foundation, manufacturing organizations can better address global competition issues, long-term growth, supply chain issues, and employee retention.

Asset operations management ties the daily work of the technician with both passive and active data to create a customized operational blueprint that will empower every employee to add value to the organization's vision.

Conclusion

Manufacturers who choose to embrace some or all of these top trends as they look forward to the new year will position themselves well ahead of the competition. With each one comes a great deal of opportunity to improve products and services, boost employee attraction and retention, and be a contributing, respected member of the community.