In a recent edition of the Manufacturing Meet Up podcast, hosts and industry veterans Alvaro Cuba and Ed Ballina look back at 2024 and dust off their crystal balls to see what they see coming up in 2025. Let’s summarize!
It was a big year in manufacturing, and Ed and Alvaro discuss the stories and trends that shaped 2024 – and how they see 2025 developing. And here’s a spoiler: challenges remain, but the future looks bright as long as humans and machines work together and keep team-building. Watch the full episode!
What Did 2024 Mean For Manufacturing?
1) Cost And Productivity Pressures
It’s all getting rather expensive for many reasons. Yes, we’re still dealing with the wake of COVID: incurred costs and wobbly supply chains. And yes, the labor market is still very tight. And for sure, consumers are getting tired of paying the price.
Manufacturers are looking for value and cutting costs, and this won’t be changing anytime soon. In fact, manufacturing has always been about making the best possible products for the least amount of money. So, it’s something we have to live and deal with. That’s where tech comes in…
2) Booming Global Market For AI
You couldn’t miss it: AI hit not only factories but also your family and communities. It’s everywhere and only set to grow. The global AI market for manufacturing is estimated to go from US$4 billion in 2023, to US$156 billion in 2033, growing at a CAGR of 45%.
Most companies believe AI will be a pivotal technology to drive growth and innovation in the sector. People are starting to see the value of the coins coming in. AI adoption in manufacturing is set to go from 26% in 2022, to 86% as of now, and to 93% in two years – which basically means everyone.
In short, it’s a revolution!
3) Connected People
People still matter – big time. Yes, there’s a “Silver Tsunami” of retirements. But there’s also a “New Collar” class rising. Trades are at an all-time high in demand and get paid attractively well. Not to generalize, but these folk are not only out to punch the clock but want to find meaning in their work – and AI can help with that. Instead of working in breakdown mode, you can use Predictive Maintenance technology to get you to the equipment and address any issues before anything terrible happens. With no greasy messes to clean up, you can focus more on solving root causes. With a connected workforce, it’s no longer just about brawn but also brain.
With purpose, everyone wins.
What Will Matter In 2025
1) Industry 5.0: Looping In The People
So all this Industry 4.0 tech is great for the shop floor – and job satisfaction. But we must do more to complement it with the front-line people using it and their skills. It’s estimated that around 44% of roles have evolved thanks to human-AI collaboration (and this will only continue). And, the idea behind Industry 5.0 is to empower people with the relevant skills to do their jobs better and to also make them more versatile and resilient.
Yes, you need to connect the workers to the tech. Still, you also have to connect them with each other – down the line, in the different factories in your portfolio, with the customer service people, supply people, quality people, etcetera.
In other words, Maintenance and Operations will become better friends in 2025.
2) Next-Level Connectivity And Data
Once you connect the people, you need to connect the systems. Yes, we’re talking about bringing Machine Health together with Process Health so everyone can collaborate to achieve full Production Health. We’re talking about next-level connectivity for complete transparency and supply chain optimization. Once all these elements are joined, the results will be incredible.
3) Sustainability. The Real Thing
This is the year that sustainability starts to become less symbolic and more systemic. Before, we had C-Suite sustainability, which made a nice picture in the annual reports. And that’s important: we need goals to work towards in terms of benefiting the planet. But the real sustainability is in the lines. With tech-empowered operators and supervisors, your lines will run better – and that means less waste and energy use. And that brings serious dollars.
By doing a better job in a more relaxed way, those working the line also have more time to think and introduce even more innovations. In other words, sustainability can start paying for itself. Ka-ching. But again, this is what manufacturing folk have been doing their whole careers. It’s always been a balancing act between productivity, quality, customer service, and all the rest. What Alvaro and Ed are saying is that it will all just get easier in 2025.
Happy New Year! Watch the full Manufacturing Meet-up episode: ‘2024 Trends, 2025 Predictions’.
