Hold on to your hats, folks, because the manufacturing world is about to get a whole lot more interesting. According to the eighth-annual State of Manufacturing Report, brought to you by Fictiv and Dimensional Research, we’re on the cusp of an AI revolution in the industry. And if that doesn’t make you sit up and take notice, then let me break it down for you.
## Engineering Talent Shortage? No Problem
The report reveals that a staggering 93% of manufacturing leaders are preparing for a shortage of skilled engineering talent. But fear not, they’re not just sitting around wringing their hands. Instead, they’re taking proactive steps to address the labor gap. Over half (51%) are investing in technology solutions to drive productivity gains, and a whopping 85% say their company is already adopting AI solutions. Talk about embracing the future.
## AI Impact on Manufacturing: Go Big or Go Home
Manufacturing leaders aren’t just dipping their toes into the AI waters; they’re diving in headfirst. A mind-blowing 97% of them expect AI to impact product development and manufacturing functions. As the economic environment proves ever more challenging and the labor market tightens, technology is becoming increasingly important for leaders to navigate these hurdles and break down workforce productivity barriers.
Fictiv CEO and Co-Founder Dave Evans sums it up nicely: “The silver lining of the macro environment is that it’s pushing technology to the forefront in the manufacturing industry. Leaders are set on accelerated growth and product innovation but recognize they need better digital tools to empower their workforce and protect against economic risk. The industry is ready to see hardware development accelerate to the speed of software development, and AI is a major catalyst.”
## Innovation Speed: Shift into High Gear
In a clear shift from survive to thrive, the 2023 survey data shows an 11 point increase in leadership focus on accelerating the speed of new product innovation (49% now vs. 38% in 2022). And while 94% report barriers to new product innovation, 78% are actively evaluating technology solutions for more efficient product development. So, buckle up, because things are about to get fast and furious.
## More Tidbits from the Report
– Manufacturing and supply chain visibility remain the top business priority overall, consistent with 2022 data.
– 53% predict quality control and inspections will be the product development and manufacturing function most impacted by AI.
– The number of leaders reporting engineers spending more than 6 hours a week on procurement or tasks outside their engineer role jumped from 30% to 52% since 2022.
– On-shoring is on the rise: 71% of leaders plan to increase U.S. manufacturing, a 6 point increase over 2022 (65%).
So, there you have it. The future of manufacturing is looking brighter, smarter, and more innovative than ever, thanks to AI and the forward-thinking leaders embracing it. Now, if you’ll excuse me, I’m off to polish my crystal ball and see what other technological marvels await us.
