How can manufacturers adapt to the industry challenges of 2024?
Despite 2023 being a challenging year for manufacturers, global manufacturing output is expected to achieve a compound annual growth rate of 3% between now and 2027, according to technology insights business Interact Analysis. Here, Helen Blomqvist, President of metal cutting tools and manufacturing solutions specialist Sandvik Coromant, discusses how manufacturers are embracing current industry trends to meet challenges and remain resilient in 2024 and beyond. I’ll see if I can do it.
From digitization and demand forecasting to economic uncertainty and emissions targets, 2023 brought several challenges to manufacturing. However, these challenges also present opportunities for manufacturers to innovate and become more competitive as the industry transforms.
Increased focus on sustainability
There will be even more focus on reducing environmental impact in 2023, with data from IBM’s Institute for Business Value showing that 86% of companies have developed a sustainability strategy. While these numbers are encouraging, the data shows that only about a third of companies have acted on the strategy since its introduction.
In 2024, we expect to see the rise of companies that make sustainability a priority. This is especially important in manufacturing, which accounts for one-fifth of global carbon emissions, according to data from the World Economic Forum. Currently, this sector is not sustainable enough, but we can do more.
Ensuring sustainability is not just a strategic ambition, but a concrete and integrated part of daily operations, is key to reducing emissions and achieving green goals. By combining strategic alignment, employee engagement, and data-driven continuous improvement, manufacturers can not only meet environmental and social goals, but also drive innovation, reduce costs, and improve corporate reputation and competitiveness. can be increased.
This multifaceted approach is outlined by Sandvik Coromant’s new brand promise, Manufacturing Wellness, which aims to drive sustainable progress through impactful partnerships. Manufacturing Wellness is a constant pursuit of improvement and consists of eight habits found in successful and resilient manufacturing companies. Sustainability and the elimination of waste are his third and fourth habits of this mindset, thereby driving sustainable progress towards a better tomorrow for people, industry and society as a whole. I can.
This commitment is highlighted by the recent validation of our net-zero goal by the Science Based Targets Initiative (SBTi). As demand for sustainable products increases, such certification will become increasingly important for manufacturers who want to remain competitive in a changing marketplace.
Developing digital capabilities to meet demand
In 2023, manufacturers felt the aftershocks of several supply chain issues. This particularly affected the aerospace manufacturing sector, which was in recovery mode post-pandemic.
However, as demand has recovered, there has been a resurgence of need from airlines looking to expand or update their fleets to accommodate the resurgence in passenger travel and meet new environmental standards with more fuel-efficient aircraft. Industry growth in 2024 will likely depend on how well manufacturers and the broader ecosystem adapt to these evolving challenges and opportunities.
Aerospace manufacturers can increase productivity by focusing on resilience, innovation, agility, and sustainability. A key way to achieve this, especially for companies involved in metal cutting processes, is to integrate digital manufacturing tools to increase operational efficiency. His 2021 survey of manufacturing companies, commissioned by Sandvik, shows that more than two-thirds of manufacturers have now implemented these tools. Use cases include areas such as digital twins, computer numerical control (CNC) integration, process monitoring systems, and cloud computing.
Digital tools support data-driven manufacturing, the fifth of Sandvik Coromant’s Manufacturing Wellness Habits, allowing companies to discover potential improvements and increase productivity from CAD to delivery. Helps accelerate. Data-driven processes allow manufacturers to identify potential failures before they occur, improving equipment uptime and extending its useful life. As 2024 progresses, the adoption of artificial intelligence (AI) tools for data analysis is expected to increase, and this level of automation will help meet new demands while reducing costs. Adopting AI tools is a core part of Manufacturing Wellness’ thinking, outlined in his second habit of embracing new technology and his eighth habit of automation.
Planning for flexible production
Digital manufacturing tools not only help companies meet resurgent demand, they also ease the resource planning process in industries where demand is difficult to predict. This is particularly beneficial for automakers, which face increasing pressure to prepare for the upcoming phase-out of fossil fuel vehicles. It is important that manufacturers have enough EV production capacity in place in time for the UK and EU’s 2035 fossil fuel car ban, making resource planning difficult.
Data-enabled manufacturing enables more flexible production systems that can quickly adapt to product design changes and customer demands, allowing for the production of customized or small-batch items without significantly compromising efficiency. It becomes easier. Integrating digital tools and supply chain management systems improves forecasting, reduces inventory levels, and increases productivity. Adjustment Improve collaboration between suppliers and customers for a more responsive and efficient supply chain.
As the year progresses, industry trends such as sustainability, digitalization, and demand forecasting will become increasingly important. But viewing these challenges as opportunities for innovation will help foster successful and resilient manufacturers that thrive in 2024 and beyond.
Visit our website to learn more about Sandvik Coromant’s Manufacturing Wellness Habits and range of metal cutting tools.
sandvik coromant
Sandvik Coromant works with its customers and partners to lead the way towards a sustainable future, providing tooling solutions to the global engineering industry. Over 80 years of practical experience has given us a wealth of knowledge in metal cutting and machining. This expertise turns every challenge into an opportunity for innovation, collaboration, and progressive solutions. We aim to create positive change by driving sustainability, efficiency and growth, and to shape a future where innovation thrives. As part of the global industrial engineering group Sandvik, Sandvik Coromant is shaping the future together.
Learn more about www.sandvik.coromant.com Or join the conversation on social media.
