Robin

As the new year unfolds, manufacturers are continuing to learn lessons from 2020’s pandemic and looking for 2021 manufacturing trends.

If 2020 taught manufacturers anything, it’s to find nimble answers to make course corrections during an emergency, a nearly impossible feat. We saw standouts like automotive manufacturers producing ventilators and PPE, and distilleries pivoting to bottle hand sanitizer. 

We also saw a disruption in certain supply chains as unexpected and staggering demand outstripped supply. Manufacturers are looking at better ways to mitigate future supply chain shock. 

The pandemic similarly shone a spotlight on the need for greater automation – the sooner the better. 

QAD’s Senior Vice President, Consulting and Transformation Services Robin Riordan offered his initial predictions for 2021 manufacturing trends in a recent article for Industry Today.

Predicting 2021 Manufacturing Trends

Which trends can manufacturers expect in 2021? We envision six specific ones.

  • Greater automation in manufacturing to coincide with a sizable remote workforce. Adaptive manufacturing enterprises are finding ways to complete high value-added tasks remotely with greater automation and technology, especially adaptive ERP. At the same time, we’re seeing “business travel” redefined and scaled back. For services businesses, relationship building is still the goal, but accomplished with fewer in-person visits. 
  • Environmental sustainability as disruption. An unexpected byproduct of the pandemic has been the rise of environmentally friendly products. In food product packaging, for example, we’re already seeing an uptick in sustainable packaging with a reduced environmental impact. Companies are looking to reduce carbon footprints and emissions. The Biden administration will likewise bring more environmental policies as it rejoins the Paris Climate Accord and issue stronger automotive emission standards
  • Expectations for ROI in shorter time periods. No doubt about it, manufacturing took a hit during the pandemic and it is still recovering. COVID-19 has pushed manufacturers to invest in automation technology and cloud software to improve efficiency, accuracy and decision making. It follows that manufacturing will want a decidedly shortened wait time for ROI. 
  • Global trade challenges. The pandemic saw calls for fortifying domestic manufacturing and returning the production of certain essential products back to the U.S. China, Canada and Mexico are the largest U.S. trading partners, each with its own issues and conflicts. At the same time, Brexit changes that occurred in 2020 and early 2021 will have impacts on global trade. Manufacturers require tools to respond to global trade situations.
    QAD frequently publishes guides to international business by country, such as South Africa, Germany, India and many others; see Doing Business in South Korea
  • And more disruption. Among all the words 2020 brought to the forefront of our vocabularies – unprecedented, pandemic, social distancing – the one most critical for manufacturers is disruption. We can expect more of the same. QAD has continuously promoted the means for manufacturers to prepare for and survive disruption. Manufacturers can optimize their business processes during disruption with agile and adaptive ERP. 
  • The role of analytics. As each of these trends pressures manufacturers, they can find solutions in analytics. QAD adaptive ERP enhances business processes using analytics to face the challenges and disruptions of current trends in manufacturing. Among the many ways QAD offers analysis tools, QAD Action Centers use analytics to help managers and shop floor staff monitor metrics and KPIs. 

To read Robin’s full article giving a deeper perspective on these topics, click here

1 COMMENT

  1. What manufacturing technique can be used to achieve ROI in a short time which might be essential for certain industries?

LEAVE A REPLY