Energy pricing, high inflation and supply chain challenges are currently causing major headaches for manufacturing companies. In cooperation with Swedish consultancy and research company Kairos Future, we asked managers of Nordic manufacturing companies how they are doing. How are they shaping business models of manufacturing, to be better prepared?
It is challenging to invest in innovation while maintaining healthy profitability given current global concerns. Inefficient supply chains and a market environment that is always shifting are causing many Nordic enterprises to struggle. Making timely decisions is essential in escalating competitiveness. However, responsiveness is often slow and costly restructuring reduces margins. Currently, many managers place a high priority on developing a sustainable business strategy, robust supply chains, and a digital and secure manufacturing infrastructure.
Through conversations with executives, we identified three key trends that will shape the future of the manufacturing industry in the coming years.
Increased risks
Recent years have shown that we cannot take anything for granted. In addition to persistent supply chain disruptions, there are now inflation and energy concerns. Any manager finds it challenging to forecast the outcomes, which discourages investments. Change has become the new norm. Digital collaboration might be key to success, because it allows all company divisions to work together to satisfy their promises to customers, while keeping communication and product development on a single, digital, secure platform.
Digitalization in Manufacturing
All industries are impacted by digitalization. In manufacturing sector, digitalization can improve market understanding and business responsiveness. Product development must become digital and move to the cloud in order to compete successfully in international markets. Two significant benefits of a digitalized business are intelligent risk management and process improvement.
However, our study found that just 65% of Nordic manufacturing companies have established explicit targets for digitalization and designated it as a company priority.
Finding the weakest links in your current processes is crucial before you begin the digitalization initiatives. In turn, this makes it easier to make data-driven strategic decisions, boost delivery speed and reliability, and develop new business models. All of this enables manufacturing companies to boost revenue and provide clients with cutting-edge solutions.
Sustainability in Business Models
Sustainability is gradually becoming a crucial business activity in the manufacturing industry. Investments and constant efforts are both necessary and mandatory. Sustainability refers to more than just the environment; it also includes economic, social, and business sustainability.
Changes in EU legislation and consumer behavior are putting pressure on manufacturing companies.
Instead of selling products, many of our Nordic customers have started developing new business models, such as renting products. This guarantees long-term customer relationships and better profitability for the company. Let’s use change and global uncertainty to our advantage by redesigning our businesses to be adaptable and prepared for the future. Those with digital tools, digital data processes and viable business strategies will win this game.
Kairos Future’s in-depth study explains what challenges and opportunities await industrial companies. With PLM Group’s experience, we offer five recommendations for how leaders and organizations can prepare for the future and how to shape the business models of manufacturing companies.
The Future of Manufacturing
Learn how digitalization & sustainability will shape industry business models by 2030.
Smart Industry (Industry 4.0) is essential in the Nordics – digitalization of it is the key
Planning and streamlining production processes through digitalization offers manufacturing companies increased productivity, quality and profitability.
A cloud-based innovation platform aims to bring together people, tools, and product data in one location. You no longer need to look for data and break it down so that it is in the correct format and matches the most recent design iteration. Data, however, is a cornerstone of Industry 4.0 and one of the primary beginning places of contemporary business.
Files located in the cloud, i.e. on secure servers, can be accessed by different people regardless of where they are at the moment. Access is limited according to the person’s role, and all changes are traceable. Integrated security ensures the security of your and your customers’ work and IP.
How can PLM Group help?
We empower people and companies to innovate. Our expertise and technologies enable you to speed up product development processes and drive impressive results. To accelerate innovation, we bring your business to a single platform. We help you succeed every step of the way through the product innovation process and take care of Product Lifecycle Management.
3DEXPERIENCE – A Game-Changer for Innovation
3DEXPERIENCE is a cloud-based innovation platform for the manufacturing industry. It brings the entire company together in a collaborative environment by connecting people, ideas, and data. The platform enables engineers to work in real time and share data with all departments, from design to manufacturing.
PLM – Product Lifecycle Management in Cloud
Cloud PLM revolutionizes the industry by letting users securely access product lifecycle management (PLM) information from anywhere, on any device, and at any time. Cloud PLM helps companies manage their digital twin efficiently so you can automate workflows and improve collaboration from engineering through manufacturing, leading to better products, reduced costs, and faster time-to-market.
3D printing and additive manufacturing
From concept to the final product, 3D printing helps manufacturing companies build better products that are more lightweight, easier to manufacture and that can be tailor-made on an individual level. 3D print is widely used in manufacturing, but there are five distinct application areas, where the technology makes a difference: jigs & fixtures, prototyping, tooling, spare parts, and end parts production.
Curious to learn more? Get in touch
