Now that markets are slowly opening up and manufacturing activities are gradually restarting, many are wondering how the manufacturing industry would look like, what the new requirements will be—for customers and suppliers alike—and what the manufacturing industry should do in this ‘new normal’. In this Outlook special, six industry leaders share their thoughts on what to expect, and how to navigate through the challenges in a post-pandemic environment.
We are yet to see the breadth and depth of the impact of COVID-19. Economies are slowly opening, but there is an overhung of the second wave. We are still in a quagmire of uncertainties, but after more than six months of descent, data shows that we are seeing recovery slowly play out.
Recently, we see a changing outlook wherein business owners are deciding to invest in new machines in order to have full control of their manufacturing processes and minimize reliance on third party providers.
Additionally, we are anticipating a shift from worker-dense shop floors into automated processing wherein production continues unhampered while lightly manned/operated. Coronavirus has advanced the need for automation in factories.
We are living a new normal. Companies who are most agile and able to adapt will eventually thrive in these new circumstances and I am determined that this will be the case for Bystronic.
Hexagon Manufacturing Intelligence
The COVID-19 crisis has underscored the important role of technology in helping people and companies rapidly adapt to fast-changing and unforeseen circumstances. Most of us have personal experience of relying heavily on cloud-based communications and data transfer during lockdown to continue collaborating and doing business remotely. At Hexagon’s Manufacturing Intelligence division, for example, we moved swiftly to provide our customers with the online support, training and software they needed to remain productive as they adopted new work practices driven by the need for social distancing, as well as changes to supply and demand within their industries.
As manufacturing operations pick up again around the world, there is a clear desire among a growing number of our customers to accelerate their automation and digitalisation journey. Workplaces may look very different post-COVID-19, both on and off the shop floor. Among the changes we’re discussing with customers is a shift from on-premise systems to secure, automated, cloud-based systems that facilitate remote data analysis and exchange.
At the same time the economic situation means manufacturers have to weigh up any capital expenditure plans extremely carefully. Technology will play a key role in helping companies remain competitive during challenging times, but businesses are only ready to invest in automation solutions if they demonstrate a clear business benefit and can deliver results quickly. The other message we’re hearing is the importance of providing open, scalable technology systems that give our customers the flexibility to evolve in line with new market requiremets.
Optimism for the year 2020 was surrounding our thoughts before the global COVID-19 impact brought several businesses to a standstill, selectively today fighting for survival. Optimism and motivation are what drives igus in the post-COVID-19 environments.
No doubt, the crisis has also impacted our global business outlook and order intake across various industries. However, it has taught us very valuable lessons and generated ample opportunities. The crisis will not end globalization. Rather, it will lead to the questioning of some of its assumptions. In particular, it highlights the need for shorter supply chains in critical areas and the relocation of some activities closer to ‘home’.
We learned from the crisis that the supply chain can be disrupted at any time. Now, we are learning that for other critical resources like pre-materials for medical supply, we also need to stockpile in case there is a cut in supply. This was demonstrated when we witnessed the global shortage of surgical masks and other medical essentials that were taken for granted during normal times. We have learned how vulnerable they are, how concentrated the supply capacity is, and how critical these products can be. Globalization will continue because it is of common interest.
Meanwhile, the COVID-19 crisis has been accelerating the push to invest in new, labour-substituting technologies. Here, in particular, 3D printing technologies, cobot support, and factory automation with smart condition monitoring will see an accelerated demand to reduce dependency on humans.
igus motion plastics products are today used in several of these applications and will continue to play a major part in all motion and moving energy demand. We accelerated product development, we managed to change our way of working, we adapted quickly to changing needs, and we never stopped investing in growth, be it space or technology.
Our online tools are readily available and our products can be completely configured via our homepage and delivered within 24 hours. Our virtual booth, showcasing our latest 2020 innovations is online and the team is ready to welcome you. Any crisis generates opportunities—we are convinced to manage this for our customers!
Mastercam/CNC Software Inc.
As developers of Mastercam CAD/CAM software, we talked with shops directly as the impact of COVID-19 began taking hold. Our global manufacturing community generally sees the post-pandemic process in three stages: assessment, refinement, and expansion.
The ‘assessment’ stage moved very quickly. Shops stopped most major (and even minor) expenditures, evaluated what business they could maintain, and worked with their partners as things started to go on hold.
Many shops we speak with have moved past assessment into the ‘refinement’ phase. This is where shops say they expect many lasting changes as they aggressively re-evaluate their processes. Examples include deeper looks into their machine and software capabilities to maximize existing investments, training up staff, and refining jobs they maintain during the crisis to ensure they are as efficient as possible when new work starts coming in.
When the ‘expansion’ phase begins, it is likely the efficiency and creativity shops built up during the crisis will mean smarter capital expenditures, broader skillsets, boosted productivity and more business flexibility. These are certainly lessons we as a company have also learned as we work with our manufacturing community to help prepare shops for the next steps.
COVID-19 has given Industry 4.0 a booster jab—proving the necessity of innovation and digitalization. It has also brought down the resistance to change and collaborate, reduced the fear of new technologies, and accelerated the adoption of digital technologies.
For Siemens, our investment in digitalization in the last few years have allowed us to be in a position to contribute to the community during this crisis:
- In March, Siemens opened the Siemens Additive Manufacturing Network for hospitals and health organizations worldwide. This digital platform brings together suppliers and customers in the field of additive manufacturing to help print spare parts for medical devices.
- In Singapore, we helped a hotel group to build isolation rooms for guests tested positive for COVID-19. Our team supported with HVAC optimization, ensuring proper circulation of air to avoid any risks of virus-spread.
Both of these instances would probably have taken more time to plan and execute in the past. But the COVID-19 situation forced us to expedite the process.
Moving forward, I’d expect more businesses to examine their operational set-up, explore areas that urgently require improvement, and embrace digitalization to reshape their manufacturing and supply chains to be more productive, competitive, resilient and sustainable.
VDW (German Machine Tool Builders’ Association)
In 2019, the ten-year boom phase in the global machine tool industry had already come to an end. That was long before the outbreak of the COVID-19 pandemic. Expectations for the development of the machine tool industry were characterized by a sharp drop in international demand for 2020. A decrease in production of 18 percent was forecast for Germany.
From today’s perspective, this will not be sufficient. However, due to the uniqueness of the crisis, it is currently not possible to foresee which result the industry will obtain at the end of the current year. The companies are now working intensively to learn their lessons from the crisis and prepare for a new start.
The machine tool manufacturers, for example, are systematically pushing ahead with digitization internally in their own production and in cooperation with their customers. Now that travel has been restricted nationwide, it has proven to be very advantageous for a company to access its installed machine base online. That could be necessary, for example, to ensure service and maintenance or to install software updates. With the universal interface umati, manufacturers can also offer their customers added value in order to optimize their production. umati now stands for machine communication in the entire mechanical and plant engineering sector and is meeting with great interest worldwide.
COVID-19 has also shown that the organisation of a resilient production is important in order to ensure the company’s own ability to deliver. After supply chains were interrupted worldwide when more and more countries went into lockdown, the establishment of robust supply structures is becoming increasingly important. This applies both to the supply of intermediate products and components and the ability to manufacture certain core components in-house.
Finally, customer contact has been interrupted by the cancellation or postponement of many trade fairs worldwide. Trade fair organizers, trade journal publishers from our industry and individual companies quickly made an effort to offer alternatives. The VDW was one of them. With the METAV Web Sessions in mid-June, we succeeded in offering exhibitors a platform that, at least, allowed them to make virtual contact with their customers. These formats will be further developed in the future.
These are just three examples of several areas that will change. They have not to be reinvented but, as a result of the COVID-19 crisis, they are increasingly gaining momentum.
For other exclusive articles, visit www.equipment-news.com.
Check these articles out:
WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!