Wish you a happy Manufacturing 2021

Even if the initial COVID impact have started to decline serious disruptions in manufacturing sector will likely to remain 2021, putting executives under pressure. Manufacturers need to screen upcoming changes and control the implications for their business strategy and their relationships with their suppliers and customers. By combining agility and financial discipline, manufacturers will be able to manage and eventually reenter growth mode and the “new normal”.

However, there’s reason to be optimistic and as we close 2020 we understand how much manufacturing changed during the pandemic. New opportunities will arise as leaders are questioning pre-COVID strategies and look into the future with new perspectives. Existing strategies and plans will be reevaluated as manufacturers are focusing on top line growth, innovation in smart products and services and increased efficiency. Transformation is unavoidable and here are 6 areas where progressive change will continue to happen:

1. End-to-End supply chain and moving production closer to the customer as manufacturers want to build where they sell and reduce time to market. This will increase the need for automation in markets with higher production cost.
2. workforce planning and reskilling. As automation will increase in addition to new way of working imposed by the pandemic, companies have to embrace new strategies for long-term competence supply and development.
3. Smart factory and making production more intelligent will accelerate. Digitalization of the industry have accelerated during 2020 leading to increased resilience. Manufacturers will continue to invest in technology and innovation e.g. 5G, edge computing, robotics, cloud computing, etc.
4. Leveraging power of data and insight both when creating smarter products and services but also understanding and responding to changes in customer behavior. Changes in customer behavior will also lead to new business opportunities and innovative business models.  Enterprises will see the value in becoming data-driven and prioritize this transformation.
5. Sustainability will be a strength and included in every single process and function. Electrification mainly within automotive sector and change towards green energy in all areas will continue to accelerate.
6. Cost reduction, alternative sourcing strategies and ROI focus will remain critical during 2021 as going back to 2019 cost base is not an option.

All reports and market trends are indicating that digitalization is intensifying and constant evolution of manufacturing industry will continue, though at a higher speed. I look forward into working closely with the manufacturing industry in shaping the future and wish you all a happy, rewarding and innovative manufacturing year 2021. One thing is sure that traditional solutions will not solve tomorrows problems and collaborative and consultative dialogues will help us design future solutions together.