Embracing and Shaping the Future: The Manufacturing Trends for 2024
Written by Henrik Jensen – Senior Director, Strategic Engagement
The years following the pandemic significantly shook up the manufacturing industry, and — surprise! — in a good way.
Legislation was enacted that’s now coming into play and is shaping the trends for 2024. Namely, the infrastructure act (IIJA) and the CHIPS and Science act, which helped further job creation and facility construction, and gave the industry tax and funding incentives to move toward more sustainable practices.
As the industry continues to evolve, manufacturers must continue to focus on trends/practices that help keep it growing: agility (in operations, production, and even staffing), sustainability (in what’s made and how so), and the ongoing embrace of advanced technology (such as smart factories).
Agility in manufacturing
When most people think of “agility,” they think, essentially, of pivotability. How quickly can a manufacturer adapt to changes in the environment? In the market? In regulations?
In 2024, agility in manufacturing goes deeper. Yes, it’s about responding to change, but it’s also in how companies attract talent, in their production practices, and in distribution.
Agile staffing allows manufacturers to quickly adapt to changing demands, ensuring optimal workforce utilization and cost-effectiveness. In production, agility enables swift adjustments to meet changing market (and individual client) needs, reducing downtime and enhancing efficiency. And in distribution, agility applies to timely delivery, increased and more actionable inventory oversight, and in improving customer satisfaction and loyalty.
The ability to quickly adapt to supply chain upheavals, staffing requirements, and market shifts is essential for success. This ability will be fueled by manufacturing leaning into platforms like Microsoft Dynamics, which provides tools for SCM, HR, compliance, and more.
Sustainability in manufacturing
Baked into the Inflation Reduction Act of 2022 (another post-pandemic legislation) are funding, programs, and incentives that can spur manufacturing and other industries to pursue more sustainable, climate-friendly practices. But even before this historic legislation, sustainability and decarbonization had momentum that will continue long past 2024.
The driving force is simple: Embracing sustainability practices not only helps businesses lower costs (through said incentives, for example) but also positions them as leaders in an increasingly eco-conscious market. Most importantly, as regulations tighten, companies that proactively stay ahead of them will have a competitive advantage. Again, technology like Dynamics and Power Platform come into play by providing the means to manage and report on sustainability initiatives, and by providing a direct connection to compliance requirements, enabling both insight and automation around such requirements.
Technology in manufacturing
In addition to supporting and driving the previously described benefits — helping manufacturers be both more agile and sustainable — technology is driving the widespread adoption of “smart factories” and “smart warehouses.” (Is it working? Just ask an Argano client that enjoyed a 300% increase in productivity.)
These advances are fueled by technologies offered by Microsoft serving as the “brains,” capturing and disseminating data from IoT devices, equipment, suppliers, and more, all helping automate resource allocation, oversight, and even production itself. And the “brains” are shared as the data collected by these tools and systems can be leveraged to better meet market demands, optimize production, and maximize human effort.
Looking ahead…
The year 2024 is already here and manufacturers leaning into agility, sustainability, and transformative technologies are already many steps ahead.
Through platforms like Dynamics, manufacturers can better connect efforts across all departments — from field service to HR to marketing — better adapt to market shifts, more easily and completely implement sustainable practices, and harness advanced technologies such as generative AI (which we’ll dig into in a later article).
Where are you in your journey toward sustainability, agility, and digital transformation? Are you keeping pace? Contact us for a free assessment and we’ll help ensure, come 2025, you’re not just responding to trends, but driving them.
