The next big shift: Young consumers are leading the charge in business transformation.

The next big shift: Young consumers are leading the charge in business transformation.

You know what keeps me up at night? The fact that 90% of our phones and laptops come from just one region of the world. Crazy, right? After spending years in tech with companies like Apple, Lenovo and Hitachi, I've seen firsthand how this kind of concentration can be a real headache. But here's the thing – we're finally doing something about it.

The generation that's forcing change?

Let me paint you a picture of what's happening in the market right now. Millennials and Gen Z aren't just talking about sustainability – they're demanding it with their wallets. The numbers tell a compelling story: nearly two-thirds of young consumers will happily pay more for sustainable products, and I'm right there with them. What's even more striking is that a quarter of them have completely abandoned brands that weren't eco-friendly enough. This isn't just feel-good activism – it's real market power.

But here's what's really interesting – younger consumers are doing their homework. They're investigating supply chains, checking carbon footprint data, and calling out greenwashing on social media. I've watched major brands completely overhaul their manufacturing processes because of social media videos gone viral and exposing unsustainable practices. That's the kind of influence that's reshaping our industry.

The perfect storm for sustainable manufacturing

Why now, you might ask? Let me explain why this moment is ideal for transforming manufacturing.

We're sitting on what I like to call a "solar goldmine". With regions around the world receiving ample sunshine year-round and some of the highest solar irradiance levels, manufacturing facilities can run on clean energy nearly all the time. We're not just talking about a few solar panels – we're building entire manufacturing cities powered by solar farms.

The timing is crucial. We're starting with a clean slate, meaning no legacy systems are holding us back. With increasing investment in green technologies, now is the perfect opportunity to leverage renewable energy for large-scale manufacturing.

Strategic positioning plays a role too. Locations around the world are becoming key hubs, reducing shipping times and carbon emissions by up to 40%. Companies manufacturing in these areas can efficiently serve both Western and Eastern markets, slashing transport time while enhancing sustainability.

Real solutions in action

The smart manufacturing cities are revolutionising how things are made. With AI-driven climate control that slashes energy usage by 40%, alongside smart water systems that recycle 95% of industrial water. The automated logistics systems run entirely on renewable energy, and there's the integration of green hydrogen for heavy manufacturing processes.

The Millennial effect on manufacturing

Here's something fascinating I've noticed: millennial and Gen Z buying habits aren't just changing what we make – they're fundamentally changing how we make things. Transparency has become the new normal in our operations. Such as installed real-time carbon tracking in manufacturing facilities and usage of QR codes that reveal a product's exact carbon footprint. Blockchain technology tracks every step of the supply chain.?

Looking ahead?

The future of manufacturing isn't just about making stuff – it's about making things the right way. The result: we're seeing major companies actually following through on their sustainability promises because they have to. Their younger customers are holding them accountable, and that accountability is reshaping the entire manufacturing landscape.

What I find particularly fascinating is how this transformation is happening faster than predicted. Five years ago, sustainable manufacturing was a nice-to-have. Today, it's a business imperative. Companies that don't adapt are already falling behind, and the gap is widening every day. We see this play out in real-time as major brands scramble to overhaul their supply chains and manufacturing processes.

The next decade is going to be transformative. We're already seeing hints of what's coming: AI-powered factories that can adjust their energy usage based on real-time carbon impact, blockchain systems that can trace every component's environmental footprint, and manufacturing processes that actually regenerate rather than deplete resources. The possibilities are mind-blowing.

A new era: Sustainability at the core

At Alat we're not just talking about sustainability – we're building the blueprint for it. Our vision goes beyond just solar-powered factories and AI-optimised production lines. We're creating a complete manufacturing ecosystem where sustainability isn't an afterthought – it's the foundation. Think automated factories powered entirely by renewable energy, smart cities built around manufacturing hubs that produce zero waste, and training programs that are creating the next generation of sustainable manufacturing experts.

But here's what really excites me about our future: we're just getting started. The technologies being implemented today are just the beginning. There’s the exploration of next-generation solutions like carbon-negative manufacturing processes, advanced materials that can be endlessly recycled, and AI systems that can optimise entire supply chain networks for minimal environmental impact.

And you know what? This isn't just good for the planet – it's good business. The companies that join in on this journey will see it pay off in reduced costs, increased customer loyalty, and stronger brand value. They're future-proofing their operations while making a real difference in the world.

I believe we're standing at the beginning of a new industrial revolution – one that's defined not by how much we can produce, but by how sustainably we can produce it.

I'd love to hear your thoughts on this. How do you see manufacturing evolving in your industry? What challenges are you facing in making your operations more sustainable? Are you feeling the pressure from younger consumers? Let's continue this conversation.?

Very informative and eyeopening on how much social media and media as a whole affects the manufacturing sector! Great read Nick! Looking forward to reading more.

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Mariam Avakovi

Interpretation Officer – Independent

2 个月

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Very insightful, Nick. All the issues you mention - from supply concentration to shifting consumer preference for sustainable products - are fundamentally influencing manufacturers' choices.? In my view, Alat presents a set of fascinating propositions for manufacturers:? #1: Decarbonise manufacturing by providing ample renewable energy? #2: De-risk supply chains by providing a second manufacturing base in the Kingdom #3: Deleverage balance sheets, as one of Alat's first deals with Lenovo indicates. The complete article is on the following link:? https://www.dhirubhai.net/pulse/alat-powering-quiet-manufacturing-revolution-saudi-arabia-ravi-sinha-z3pfc/ Would love to have your thoughts.?

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The shift towards responsible innovation is inspiring and necessary, especially as younger generations demand accountability.

Hiroshige Kato

AI / Data / Self-Serve Growth

3 个月

Love to hear that a big wave is coming from the manufacturing world! I hope Japan can collaborate on that momentum ??

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