The COVID-19 pandemic that began in early 2020 disrupted and provided an extreme stress test to our manufacturing systems and global supply chains in numerous ways. The pandemic exposed old inefficiencies and new vulnerabilities.
Manufacturing worked very hard to pivot to address these challenges. New technologies certainly helped manufacturing systems adapt to some degree. However, the adaptation was not as efficient, rapid or complete as was hoped. And the disruption was severe.
The manufacturing industry faced a real collapse from the COVID-19 impact. Surviving that impact was difficult, but it gave a new outlook towards the existing problems and brought unprecedented solutions. The manufacturing industry learned to understand they can make a shift to the new normal while keeping intact its founding values and attain maximum benefits from the latest technology. The shock of the pandemic was a “wake up call” and an awesome opportunity to open the way for acceleration of innovation in manufacturing.
Opportunities for innovation
The combination of multiple disruptions and a global recession has created an even more competitive environment than ever before. The stakes for successful innovation have risen as high as life and death for many companies. Supply chains have been ripped apart, and the demands resulting from that have pushed poorer performing manufacturers out of business.
Conversely, the strongest and most innovative companies survive and thrive and are coming out leaner, meaner and with less competition. Strategic and anticipatory thinking by manufacturers in a world of rapid change will bring adaptability and flexibility to compete and stay one step ahead of everyone else.
The pandemic shock has been very painful and yet it has brought greater clarity of vision. The impressive will, creativity and capability of manufacturers exposed weaknesses in the way goods are made and the way supply chains are managed and accentuated the need to transform from the old ways of doing business to new approaches that are more agile and resilient.
COVID-19 has illuminated the importance and value of digitizing and automating factory operations. Digital transformation will both democratize and accelerate product innovation that will enable more localized and smaller-scale production. Digital innovation will use 5G technology as a crucial enabler, reducing latency and accelerating the deployment of remote control and monitoring systems and autonomous devices.
The future of supply chains lies in greater localization and flexibility. There has been a major movement to explore the possibility and value of sourcing closer to home and to the customer. This has the potential to reshape the global map of manufacturing. The COVID-19 induced dynamics of 2020 have led brands to think long and hard about where they make their products.
The bottom line is that the odds are stacked in favor of much faster, more focused and efficiency-enhancing innovation across the manufacturing ecosystem. This should be a strong positive sign for strong optimism. Right NOW, is one of the most opportune times for the future of innovative people developing innovative products, supported by an equally innovative digitally enabled local manufacturing industry. Innovation is what the world economy needs to boost living standards across the globe in the coming decade and beyond.
It is essential for manufacturers to access the support services and incentives and to acquire the latest advanced, patent technologies and affordable technology for improved productivity. Incentives will help existing facilities and customers increase their capacity. This will increase green field investments and accelerate capacity expansion across all industries.
People will be a very critical asset in the manufacturing industry. In the future, companies will need to have a multi-scaled workforce to gauge their single points of failure and eliminate them. Investing in people, empowering people and having empathy will be very important. In addition, it will be important to diversify both customer and industries served.
You can’t stop change
Agility is the first important thing needed. Adoption of new technologies and strategies is the second, and the third important thing is becoming more competitive. There is a need to shift the company focus internally to health & hygiene, making employees more agile, making monitoring/supervision more IT-enabled and increasing productivity with no failures/errors with competitive prices.
Change is inevitable and continues to arrive at an exponentially faster pace. The sense of urgency, agility, flexibility to respond, etc., will become even more important. COVID-19 has made management decision making very critical. Proper decisions can only be made with the relevant data. So, as long as one has connected systems, data-driven decision making will help in a very significant way. Strategizing and using the Human Resource approach must include a dynamic shift in the way the people are considered in terms of upgrading the skills and in human connections. And the approach, in terms of skills and the overall viewpoint, must be comprehensive from the top management to the people on the shop floor.
The changing role of manufacturing leadership today highlights the need for innovation. It is important for leaders to have empathy more than ever before. The pandemic has affected physical and mental health and innovation in leadership in manufacturing must have an empathetic way of leading that will achieve a positive effect on the employees.
The fact is that manufacturing plants, their leadership and their employees are not all alike. However, we can learn some valuable lessons from each plant’s leaders, employees and processes, even from plants that produce different products. The evolution of modern manufacturing has driven the path of the global economy for centuries. We continue to see innovation and creative ideas change the face of modern manufacturing, especially since the arrival of COVID-19 in 2020.
I leave you with this thought about innovation and this time in our history: “Never before in the history of mankind has the pace of innovation and technological acceleration been faster than it is today.”—Yannick Schilly, CEO, Altix Consulting
Longtime columnist Glenn Ebersole is a registered professional engineer and a Strategic Business Development/Marketing Executive and Leader in the AEC industry and related fields. He can be reached at [email protected] or 717-575-8572.