Over the last decade, manufacturing engineering has undergone several changes. Some of these changes have produced a positive impact on the industry, while others were due in part to economic downturns had a negative effect.
John Zegers, the Director for the Center of Innovation for Manufacturing at GTMI (Georgia Tech Manufacturing Institute), says there’s good news ahead for manufacturing engineering in 2015.
- Reshoring will endure
Like before, manufacturers will re-evaluate transportation and energy costs, product demand, labour costs in developing nations, access to talent, availability of capital, and currency trends.
These factors will help establish more local jobs and create a better bottom-line for companies directly and non-directly involved with the industry. Thus, the industry can benefit greatly from a shorter distance between a product’s manufacturing locations and the market.
- The industry will experience broad growth in 2015
Domestic manufacturing is going to increase, especially in North America because the Purchasing Managers Index reached 58.7 this past November.
Zegers says we could see a growth of four or five percent in domestic manufacturing. Still, he cautions that facilities and operations will need to be more efficient in order for manufacturing employment to catch up.
- Big data = big efficiency
A CSC Global CIO Survey claims that 81% of manufacturers are huge proponents of big data. They say it has a positive effect on production and efficiency that will lead to major growth for the industry.
The prevalent institution of the IoT (Internet of Things) will allow for sensor technologies to aid with mobility-based manufacturing.
- Predictive maintenance will enjoy huge investments
Older concepts are losing their space in the workplace and they will be replaced with advanced sensor technologies that heighten returns and reduce downtime.
Moreover, capital equipment will experience an increased outlay. The industry is going to see improved bottom lines due to new efficient equipment that performs more reliably.
Basically, domestic manufacturing is going to have a great year in 2015!
- The GDP will grow at a slower rate than manufacturing
The Institute of Supply Management issued a survey report in December of 2014 that predicts that manufacturing revenues could increase in 15 different manufacturing industries.
As the GDP is used as a marker as which industries measure their overall performances, the momentum the manufacturing industry experienced in 2014 is expected to carry on in 2015. This momentum will help the industry soar above the GDP for the first time in years.