Manufacturing is less about manual labor and more about technical skills thanks to advanced technology. Just think about how different factory work might be five, 10 and 20 years from now. The future of manufacturing, just like every other industry, is bright and profitable so long as companies adapt to trends and survive any changes.
Becky Morgan, president of Fulcrum Consulting Works Inc., writes that tens of millions of U.S. manufacturing jobs headed overseas starting in the 1980s. Although some of those jobs came back, the industry may never quite get those jobs back. The future of manufacturing rests with collaboration and innovation. Companies that embrace these principles survive any ups and downs of the global economy.
The future of manufacturing means speed and flexibility with every process, from research, development and planning to supply chains, production runs and logistics. Effectively delivering products to customers wins the day. Large companies or manufacturers that have a lot of financial backing, lead the charge when it comes to adapting to innovations. Meanwhile, startups are the ones that innovate, adapt to current trends and forge relationships that build upon each other. Startups challenge the big kids on the block.
Sharing Risks
The future of manufacturing for large companies with a lot of capital investment lends to sharing risks with other companies. When there is a huge capital investment in a project, a single company can go under and fold if something goes wrong. Sharing the risk with other big players means more collaboration and innovation because stakeholders have a vested interest in making a venture successful.
Look at blockchain technology developed by IBM. Blockchain is an entirely different way of verifying financial transactions, marketing products and verifying someone's identity. IBM spent several years developing this virtual, cloud-based ledger, but the tech giant had the help of several partners that tested the technology before bringing blockchain to market.
Faster Time-to-Market
Smaller companies and startups master a quick time-to-market concept when a few dedicated people use venture capital to quickly make prototypes and then create small production runs. Once satisfied customers like the end result, they order more and the startup takes off. With more funding from customers, startups and small companies ramp up things to scale.
A small division of GE, called First Build, profited quickly using these fast time-to-market ideas. The parent company gave First Build one year to turn a profit, and it did thanks to analytics, building partnerships and innovating.
Partnerships
The future of manufacturing means specialty companies bridge the gap between large and small companies. Large companies have capital, and small companies have innovation. When startups produce items for huge manufacturers, both teams win. These new companies help pair collaborators and innovators together. CEOs with a lot of network connections bring automakers such as GM, Ford and Toyota to the table as they acquire self-driving car startups as part of advanced technology in transportation.
Factories continue to evolve as they create more and more advanced products. As such, the future of manufacturing includes dynamic partnerships and collaborations that make everyone's lives better.
Photo courtesy of Saginaw Future Inc. at Flickr.com
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