Deloitte: 2020 manufacturing industry outlook
Continuing into 2020, it is predicted that...
Manufacturing Global gains insight into Deloitte’s top four trends for the manufacturing industry in 2020.
Continuing into 2020, it is predicted that the industry will continue to experience uncertainty, as manufacturers provide mixed outlooks for the industry. Currently 67.9% have a positive outlook for the industry, while 32.1% have a negative outlook - a 26% decrease in positivity compared to 2019 at 93.9%. Deloitte expects this mixed view to prevail in 2020.
A continuation from 2019, is showing companies “getting their diversified houses in order’. A large proportion of companies are working to streamline their core operations to realign businesses around key markets and customer segments to drive results and value. “Some are turning to mergers, acquisitions and divestitures to get their houses in order.”
With industry 4.0 progressing at a fast rate, manufacturers are facing challenging to maintain momentum when it comes to their digital journey. As a result of early successes there has been an increase in companies looking to further explore and invest in digital.
However, with current uncertainties companies are shifting their efforts towards digital projects that will drive agility and scalability to manage risks in the current business climate.
Supply chain ecosystem
In order to effectively improve agility and scalability within the industry, Manufacturers are turning to partnerships to maintain the momentum. Deloitte reports that the need to build strong ecosystems, is proving to be an effective strategy for manufacturers, highlighting that there will be a twofold approach to this trend over the next year.
First phase - actively mobilising partnerships that can drive targeted business goals, adding new capabilities.
Second phase - leading manufacturers are expected to continue to expand their ecosystem in order to satisfy their strategic vision with the right resources.
Over the last decade, there has been an increased importance placed on corporate social responsibility (CSR) across all industries. Currently in manufacturing over one-fourth of organisations are ‘social supers’, who show a genuine commitment to improving the world.
Deloitte predicts that this trend will continue through 2020, with companies experimenting with renewable energy resources for current and future operations, strengthening their commitments to green and clean energy.
For more information on manufacturing topics - please take a look at the latest edition of Manufacturing Global.
Image source: Deloitte
SAP Whitepaper: Advantages of Intelligent Assets
A core pillar in SAP’s Industry 4.0 strategy, Intelligent Assets equip organisations to reduce downtime, empower employees and increase efficiencies across industrial equipment and manufacturing units.
In a whitepaper produced in partnership between SAP and BizClik Media Group, Rachel Romanoski, Solutions Manager, Digital Assets, SAP, dispels some of the myths surrounding asset intelligent, and shares insight into how even small investment in asset intelligence can pay dividends in minimising cost leakage and realising an asset’s potential.
As with all innovations, the ceiling for Intelligent Assets is as high as an organisation can dream, afford and implement. But Romanoski says that just a little intelligence can go a long way: “Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology. They can be super advanced, such as leveraging physics-based engineering simulations to forecast potential failures, and help mitigate them. But it could be as simple as a temperature reading. You can pull a lot of simple information from most equipment, and by enhancing that data through ancillary solutions and digital capabilities, you can create that Intelligent Asset.”
One of the most immediate benefits is reducing or, in some cases, eliminating unplanned downtime. Equipment failure is one of the most common causes of disruption and can cause chaos throughout the supply chain.
“The true power of the Intelligent Asset is in changing the basic, reactive emergency work or time-based, planned maintenance and being more prescriptive and tailored to that specific asset and use case,” Romanoski says. “Ultimately, you can reduce the unplanned events that often carry a big price tag.”
"Oftentimes people think Intelligent Assets need to be the latest and greatest cutting-edge technology... But it could be as simple as a temperature reading"
Other financial benefits include stemming cost leakage and “sweating assets” to the full potential. “Maybe you can consider the lifecycle of the asset and understand whether you can push it a little bit further,” Romanoski explains. “It might be that the best course of action for a low-cost item is to run it to failure. Having this information that we collect over time empowers those people to make those better decisions, but also has a trickle down effect to building resiliency and efficiency into the entire supply chain.”
To read the full report, including insight from Intelligent Assets, Intelligent Factories, Empowered People, and exclusive insight from Dominik Metzger, the lead on SAP’s Industry 4.0 programme, CLICK HERE.