We see that globally, the manufacturing industry is undergoing rapid transformation with the emergence of digital technologies, the Internet of Things, artificial intelligence and virtual reality making way for innovation, enhanced productivity, and a sustainable supply chain. According to Chartered Insurance Institute (CII), manufacturing industries contribute nearly 16-17% to India’s GDP and employ around 12% of the workforce which accentuates the fact that they are the grease that keeps the wheels of the economy in motion.
Prolonged lockdowns around the world weakened supply chains; companies became more vulnerable as manufacturing and production activities came to a stuttering halt. COVID-19 reinforced the need for digital transformation and Industry 4.0, graduating its status from a competitive edge to an operational necessity. Given the strategic challenges, it has become imperative to bring the connected factory concept into use to increase productivity, optimise performance and agility, enhance decision making and cope with skilled labour shortages to meet rapidly evolving consumer demands effectively and efficiently.
It has become ever more crucial for businesses to create an adaptable and well-functioning manufacturing unit to respond to future uncertainties. By integrating predictive data analytics, virtual reality and artificial intelligence, smart factories empower manufacturers to offer real-time, on-demand visibility into the complete production chain, improve traceability and enhance processes with real-time insights. Robust inventory management is—consequentially—equally crucial to meet the volatile demands of a changing economic market and predict unexpected disruptions to the supply chain. Automation will create efficient warehouses that are smart, interconnected and less labor-intensive.
With such tools at hand, companies are able to become crisis resilient and future proof while securing brand relevance and business continuity. We see this at play in our own business district, where an ever-growing number of advanced factories are tapping into the incredible potential of digital to remain competitive. FMCG giant Unilever, for example, operates MENA’s largest personal care liquids manufacturing unit at Dubai Industrial City (DI), which employs state-of-the-art technology and modular design for faster, shorter and highly responsive production lines that cut lead time to market by 80%. This allows them to adapt to consumer needs and market trends quicker while reducing waste and energy consumption.
Robust, integrated infrastructure is necessary to employ end-to-end digital solutions, and something public and private entities must prioritise if they wish to accelerate innovation and adoption. The UAE is one such model, launching government-led strategies to stimulate digital transformation across priority sectors with enabling infrastructure and policies. To successfully cross this bridge, conglomerate WenChao Group recently signed on to operate their food manufacturing and logistics facility in DI to be able to produce AED500 million worth of semi-cooked and braised food annually using advanced technology. Industrial land with fully functional infrastructure, high powered warehouses and broad incentives make integration even easier. Without such a necessary framework, digital transformation at such a large scale is a milestone just beyond reach.
The manufacturing sector will greatly benefit from the continuous adoption of advanced technologies, not only in the competitive edge it awards businesses across a range of measures, but also because it enables another widely emerging trend of great value to consumers – sustainability. By addressing waste points, reducing energy use and conserving resources as we march towards a greener future, companies can inspire greater brand loyalty and, according to many studies, higher profitability. Considering the numerous promises it holds, embracing innovation in manufacturing should no longer be seen as a novelty, but a core business pillar.