Be ready for the changes coming to manufacturing

My amateur forecasting and budgeting enterprise went out of business during the pandemic.

No more guesses – even educated ones -- are on the horizon. That luxury went out the window in March 2020.

So, unless you are Nostradamus, you may simply be asking your sales teams to bring in 5 to 7 per cent more gross sales in 2023 because it seems like a reasonable increase.

But manufacturing is changing. And there isn’t a damn thing any of us can do about it. Except keep up. Manufacturers, however, oftentimes have been slow to react to the changing business environment around them. This time a fundamental shift, a paradigm, is coming. And it’s a big one.

It will affect your business in every way, not just in sales, but in management, production, and even shipping.

At the recent Canadian Manufacturing Technology Show (CMTS), held Oct. 4-7 in Toronto, NextGen Manufacturing Canada (NGen) CEO Jayson Myers told the crowd that Canadian manufacturers need to become more automated and data-driven.

“With all challenges come opportunities,” he said, “and it’s now time to rethink our business practices. But not on the business activity as it exists today, but as part of the new normal.”

If your company survived the recession of ’09, it’s likely that you’ve already implemented some advanced changes in your business. More will come thanks to COVID-19. The business of manufacturing is changing. It’s no longer just about selling parts; it’s about selling a supply solution to your customers and your customers’ customers.

These four cornerstones can help:

1. Automate. This can help with the ongoing (and upcoming) labour shortage.
2. Upskill. Giving your workers digital skills will pay off now and down the road.
3. Create culture. Your shop’s leadership and mindset can make you an early adopter of digital tools and advanced manufacturing technology.
4. Become data forward. This doesn’t necessarily mean jumping headfirst into blockchain. You can start slow, gain an understanding of digital twinning, and move on from there. Slowly.

It’s also a fallacy to think that these four goals are cost centres or, worse, a sunk cost. And they all are intertwined.

Advanced technology and data-driven tools will attract young workers who can help close the skills gap. These young workers then can be upskilled to create tomorrow’s manufacturing leaders.

It’s a challenging time to be a manufacturer right now, so let’s get it right. Now is the time to start looking forward and stop looking backward.