2023 is here, and as we discussed in our post on The Future of Manufacturing, manufacturers can gain an advantage through awareness of automation trends. By paying attention to these trends, manufacturers can improve processes and strengthen the health of their business. To that end, we’ve identified trends that are holding strong in 2023. Over the coming months, we’ll share these trends with you. First, we’d like to revisit the immense trend of reshoring and the boom it is creating for manufacturers.
Reshoring & Regional/Near-Sourcing
We spent some time on this topic at the end of last year with posts on the reshoring tsunami that is on the horizon and sharing a case study of a Wes-Tech customer who was helped by reshoring. This Industry Week article suggested advances in robotics paired with reshoring were some of the cornerstones for ensuring a strong workforce:
“In 2023, economic uncertainty will put additional momentum behind the technology that makes reshoring possible. In creating a distributed network of factories, automation offers a better handle on costs and enables a high level of flexibility that makes scaling easier.” -Paolo Avagliano, COO at Bright Machines.
Also, according to research by McKinsey & Company, improving the position of U.S. manufacturing will have many other positive effects on the economy, the labor market, and the country’s global competitiveness.
“Reviving manufacturing could add up to 1.5 million jobs, particularly among middle-skill workers, which would help recalibrate the US labor market and bolster the middle class. Strengthening the sector could also address the supply chain issues that have been wreaking economic havoc over recent years, easing disruptions caused by the pandemic while improving global competitiveness in the mid to long term.”
Regionalization
Along with reshoring the manufacturing process, McKinsey also shares why it will be important to consider ways to reduce disruption and impact on the supply chain through regionalization.
“For some companies that supply US markets, the evolution of factor costs has significantly eroded the comparative advantage of global production locations and supplier networks. When organizations expand their definition of value to take account of sustainability issues and supply chain risks, the gap can narrow even further. That shift could unlock a wave of regionalization in the world’s manufacturing networks as companies develop shorter, more resilient, and more adaptable supply chains that better serve the needs of different markets.”
Additionally, reshoring and regionalization are looking to be steadfast trends well beyond 2023. According to the Hitachi Solutions post on manufacturing trends:
“We can expect both reshoring and near-sourcing to remain leading manufacturing trends in 2023, as companies attempt to reduce or eliminate entirely dependencies on foreign materials. These trends will not only help manufacturers remain resilient in the face of future supply chain disruption; they’ll also provide a much-needed boost to the U.S. economy.”
At Wes-Tech, we have services and solutions to help you optimize your resource utilization, ensure your facilities and automation capabilities fit your production needs, and increase your profitability. If you are considering reshoring, contact us today for a consultation.
Team Wes-Tech
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