IDC predicts by end of 2024, 40% of Asian-based supply chain organisations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover two percentage points of margin.
The firm notes that rising inflation, supply chain disruption, talent shortage, cybersecurity risk and mandatory sustainability compliance are the key challenges all manufacturers will face in 2023 and beyond. As organisations continue to build resiliency and agility, they need to embrace technology to increase operations visibility and monetise data to extract insights to help in decision-making.
Manufacturing Insights research manager for IDC Asia/Pacific, Wai Yee Lee says Asia/Pacific manufacturers need to be agile and flexible to remain competitive in a dynamic and fast-paced market and continue to generate business revenue, meet customer expectations and comply with stricter environmental standards.
“This can be achieved with prudent strategic planning and close collaboration with ecosystem partners. It is crucial for manufacturers to recognise the value of establishing an ecosystem-wide synergy in connectivity, visibility, and traceability for short- and long-term sustainability goals and other new opportunities for the business,” she added.
IDC's top 10 manufacturing predictions:
#1: Business resiliency: By the end of 2024, 40% of Asian-based supply chain organisations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.
#2: Data monetisation: Due to rising customer expectations, by 2026 30% of Asia-based 1000 (A1000) OEMs will mine service interactions and work order data in real time to inform product development decisions and achieve quality targets.
#3: 5G for safety: By 2026, digital-first operations enabled by 5G connectivity will improve worker safety, resulting in a 40% reduction in safety incidents in Asian-based manufacturing.
#4: IoT cybersecurity: By 2028, 50% of Asian-based organisations will deploy IoT cybersecurity with a dynamic security layer at the sensor level, powered by machine learning algorithms, resulting in fewer operational cyber incursions.
#5: Multi-shoring supply sourcing: By 2024, 40% of Asian-based manufacturing companies will have implemented more balanced multi-shoring sourcing strategies to better address the risk that result in a 15% improvement in supply reliability.
#6: Digital literate workforce: By 2025, 30% of Asian-based manufacturers will prioritise digital literacy as a key skillset during the talent acquisition/retention process to support digital transformation & enterprise-wide technology adoption.
#7: AI-supported decision: By 2025, 25% of Asian-based manufacturers will have deployed enterprise-wide AI-based tools to support the decision-making process and maximise the value of data, resulting in up to 5% improvement in revenue/profit.
#8: Carbon footprint tracking: By 2026, regulations and sustainability-linked lending will drive over 40% of Asian-based manufacturers to adopt product carbon footprint as a key metric to operationalise sustainability beyond reporting.
#9: Ecosystem quality management: By 2026, 50% of Asia-based 500 OEMs will take an ecosystem approach to quality management, providing designers with real-time feedback on quality issues, and improving product success rates by up to 25%.
#10: Metaverse applications: By 2025, 5% of A1000 manufacturers will include the industrial metaverse into their digital transformation roadmap (addressing the advanced simulation, cross-domain collaboration, and safety).
