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Dynamics Matters Podcast Ep 113: 2023 Manufacturing's game of two halves and the cautious optimism of 2024
With special guest Matt Birtwistle, Head of Manufacturing, HSO.
In this episode, we discuss:
✔ What manufacturers can expect in 2024
✔ How new technology is shaping outcomes
✔ The challenges AI can help manufacturers overcome
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SoundCloud A manufacturing year of two halves
Manufacturing in 2023 resembled a football season split down the middle: a bright first half followed by a deflating second, leaving players winded and wondering what the next match holds. Early in the year, things seemed promising. Manufacturers reported healthy growth, propelled by pent-up demand and a post-pandemic economic rebound. Yet, as the clock ticked towards halftime, the winds shifted. Geopolitical tensions, escalating supply chain disruptions, and rising production costs cast a shadow over the industry, leading to a decline in performance.
2024, the year of cautious optimism
But even with the scoreline looking shaky, whispers of cautious optimism are filling the air as we enter the 2024 season. Manufacturers, still bruised from the second half of 2023, acknowledge the lurking challenges – the Middle East crisis threatens further cost increases and supply chain headaches, while inflation remains a formidable opponent.
The magic of artificial intelligence
However, there's a sense that the game isn't lost. This optimism stems from a potent combination of factors. Firstly, manufacturers are increasingly turning to their secret weapon: technology. Specifically, the magic of artificial intelligence and machine learning is being harnessed to tackle some of the industry's biggest woes. AI-powered tools are helping manufacturers forecast supply chain disruptions, optimise production processes, and mitigate cost increases caused by unforeseen events like the Middle East crisis.
Secondly, the connected worker brings with them a game-changing advantage. Equipping shop floor personnel with smart devices and applications is boosting efficiency, reducing errors, and improving communication. Imagine a seamless connection between the front lines and the back office, allowing for quicker decisions and more agile responses to challenges.
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Government support for manufacturers
Furthermore, the tide seems to be turning on the government's side. Increased investment allowances and a developing industrial strategy are offering manufacturers much-needed financial incentives and a sense of long-term commitment. It's like having a supportive coach on the sidelines, providing resources and creating a favorable environment for success.
Microsoft's modular focus
Microsoft is also stepping onto the field with a game plan tailored to the manufacturing industry. Integrating AI into their core ERP solution, Dynamics 365, Microsoft aims to provide manufacturers with intelligent tools woven directly into their daily operations. Think of it as an AI-powered captain rallying the team, ensuring every move is informed and strategically sound. Additionally, Microsoft's modular deployment options for Dynamics 365 allows manufacturers to choose the specific tools they need, eliminating the burden of investing in an entire, cumbersome system. This increased flexibility allows manufacturers to adjust processes and adapt to changing conditions, maximising its own strengths and weaknesses.
Of course, challenges remain. Building trust in AI, and demonstrating its tangible benefits beyond mere hype, is crucial for wide-scale adoption. Similarly, sustainability continues to be a pressing concern, requiring innovative solutions that balance environmental responsibility with economic needs.