A New Normal for Manufacturing?

The industrialized world is still reeling from the impact of the COVID-19 pandemic, and it may not be going away any time soon. We may not like it, but we are learning how to live with it. And some of us are looking ahead to see what the long-term impacts might be. Is the future darker or brighter?

IndustryWeek magazine recently published an article by Artem Kroupenev, Vice President of Strategy at Augury, who asks the question: What Will Manufacturing’s New Normal Be After COVID-19? The answer, he opines, involves healthy doses of automation, digitization, and remote access.

He notes that many companies saw supply chains break and raw material stocks dry up as countries closed borders. Those relying on just-in-time production were hit especially hard. In the same way, whole countries experienced shortages of manufactured goods that could not be imported.

To protect against future disruptions, Kroupenev predicts a revival in domestic manufacturing, and a decoupling of supply chains. But things will be different from 20 or 30 years ago. There will be a strong push, he says, towards automation in the new domestic industries, and companies will rely far more on digitization to manage supply chains.

A Key to Success

A vital key to success in this new reality will be data, and the ability to send and receive it securely across the Internet. “For manufacturing, greater connectivity will mean significantly accelerated deployment of Industrial IoT, including sensing, data visualization, remote collaboration tools and AI-based insights across their operations,” Kroupenev said. “Control-tower view of data and insights across the whole operation will become a standard component of running a manufacturing organization.”

Even before the pandemic, early adopters of digitization had gained an average 7% revenue growth advantage, according to a McKinsey report cited in the article. They have been able to increase efficiency through better supply chain integration, more effective operations, and more flexible maintenance programs. They have made the transition to remote access more smoothly. Companies that do not adopt this new normal will suffer, says Kroupenev, and may eventually fail.

Embracing the new normal does not need to be difficult. Skkynet’s software and services work equally well with legacy systems as new installations. There is no reason to take risks. Something as simple as making a standard-protocol connection to a secure, proven technology can transport a company into a safer, more reliable world.