Organized manufacturing industry is the biggest private sector employer in India, with over 30 million employees. India has all the prerequisites for fast paced industrial growth such as, a huge workforce, substantial investments and a supportive government. However, going into 2023, several businesses in the sector are concerned about vagaries such as inflation and economic uncertainty.
The World Bank predicts that the world may be headed towards an economic recession and some countries may already be in the midst of it. This coupled with prolonged geopolitical conflicts, has a significant impact on the export and import of raw materials, affecting production and sales. But tailwinds such as the Indian government’s efforts to enhance local manufacturing with production-linked incentives (PLI), may push the industry forward.
Manufacturing companies don’t need to carry the pressure into 2023. Here are three ways in which manufacturers can revamp their approach to make their business and operations future ready and resilient for any challenges ahead.
#1: Mitigating supply chain risks
In 2021, Indian manufacturers spent close to USD 5.5-6.5 billion on Industry 4.0 solutions such as AI, advanced analytics, IoT and more. Taking the benefits of automation into consideration, the investments are only set to increase in the coming years. According to Deloitte, manufacturers with higher digital implementation were able to better adapt to supply chain challenges. For instance, manufacturers with data analytics capabilities can predict the demand for products/materials and avoid instances of shortages, expediting their preventative measures.
Technology can help maintain production momentum, prolong long-term profitability, and unlock advanced production capabilities. But, these changes require monetary investments in research and development and skilled talent, which can be daunting. To ease technological transition, manufacturers can team up with deep domain service providers, helping them cut their cumulative costs.
#2: Synergizing human-automation workflow
The Indian manufacturing industry has ample workforce strength, something that countries such as the U.S. face challenges with. However, the existing manufacturing workforce in the country either requires skill-based training or possesses limited skills. They also often spend the majority of their time performing high volumes of repeated tasks. Automation/robotics can improve workforce efficiency, while artificial intelligence and machine learning can improve operational aspects. Digital transformation will ultimately drive productivity and have the potential to transform workforce output.
As manufacturers adopt more advanced technological solutions for their business, training their employees with value-based tasks will become mission critical. Despite advancements in technology, businesses will require human support. Maintaining human and automation synergy is inevitable.
Manufacturers need to look into implementing programmes to train their workforce and providing pre and post launch support/training. Considering the value that skilled laborers can add to the business, manufacturing companies can also outsource support. NextGen solution providers can help set up automated systems and also train the employees through catalogs, manuals, illustrations and translation services.
#3: Getting well-versed with Metaverse
Gartner predicts that by 2024, 25% internet users will migrate to the metaverse. According to Emergen Research, manufacturers such as Boeing, Airbus, Rolls Royce in the U.S. have started to experiment with creating a seamless virtual reality experience in the metaverse. Indian businesses in the sector can benefit from becoming early adopters.
With the metaverse, manufacturers can simulate a virtual factory, production line, address complex repairs using AR, and collaborate within the team using digital twin technology. The possibilities are endless and there is a lot of room for businesses to explore and innovate. However, getting on the metaverse calls for seamless cloud computing capabilities and stringent cloud security measures. Since several businesses are looking to cut costs, outsourcing support for cloud computing can help, without having to compromise on a lucrative business avenue.
Banking on what’s certain amongst uncertainties
While the headwinds of the current economic conditions cannot be sidelined, innovations and emerging solutions have the potential to propel the industry forward. Manufacturers can lean on technological solutions and service providers to increase their productivity, visibility and connectivity with their suppliers and consumers, without hiking expenses.
According to IBEF, the manufacturing sector could produce 200,000 jobs in the next five years, giving room for Indian businesses to not just hire, but to engage their employees in skill-based tasks. The industry is already making strides globally, ranking 3rd in manufacturing pharmaceuticals. Digital transformation solutions have the potential to help the industry scale and climb up the ranks. The future is never certain but the right measures can act as an airbag, softening or even eliminating the blow.