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By 2030, the manufacturing industry in Southeast Asia could generate up to $600 billion USD a year. Manufacturing is one of the most significant contributors to Southeast Asia's economy and is undergoing rapid transformation. Some key factors that can influence the manufacturing sector's outlook include technological advancements, sustainability and environmental regulation, and economic growth. Yet, challenges such as inflation, supply chain disruptions, and workforce shortages persist. By implementing advanced automation and data-driven solutions, companies can enhance operational efficiency, reduce downtime, and optimize resource utilisation, thus embracing digital transformation.
Overcoming Challenges by Adopting the Right Smart Manufacturing Solutions
Rockwell Automation’s 8th Annual State of Smart Manufacturing Report finds that 29% manufacturers believe that smart manufacturing has already helped them to keep pace with market transformations and to mitigate the lingering impact of the pandemic. The streamlined processes help reduce human errors and boost overall output. Cost savings are another advantage, stemming from reduced labor costs and optimized resource utilization. Furthermore, automation services drive more consistent product quality due to standardized production processes. Other considerations are cybersecurity, system integrations, and regulation. Cybersecurity becomes paramount to safeguard interconnected systems against potential threats. Integration complexities between new and existing systems require resolution. Navigating evolving regulations and compliance standards is essential.
However, the biggest barriers to adopting smart manufacturing for APAC manufacturers are employee resistance to technology adoption and change, a lack of skill sets to manage smart manufacturing implementation, and a lack of a clear definition of the value/ROI of smart manufacturing. According to the report, 48% of businesses report a lack of skills to manage smart manufacturing initiatives as the biggest barrier to adoption, while 46% report employee resistance to new technologies as the biggest barrier. Change management is therefore a key component of successful technology.
Adoption also remains a challenge as shown by the 26% of automotive manufacturers that cite technology paralysis – an inability to decide between solutions – as one of their main obstacles to overcome. To address challenges related to employee resistance to technology adoption, manufacturers should empower their employees with the necessary skills to adapt to evolving roles and collaborate effectively with AI systems. Providing education and upskilling opportunities to enhance digital capabilities is crucial. AI and Augmented Reality (AR) tools can be highly effective in this regard, creating virtual environments for experiential learning and knowledge-sharing
It’s Time to Embrace Smart Manufacturing Solutions
It is important to note that smart manufacturing equips manufacturers with the information and insights to optimize productivity, quality, risk management, and sustainability. Smart manufacturing also provides them with the flexibility to address manufacturing issues quickly and efficiently while reducing downtime and risks to their workers, assets, and reputation.
For example, in a food and beverage packaging plant, automated Operational Technology (OT) data capture allows for correlating production parameters with batch numbers, documenting details like pressure, temperature, and container thickness.
Looking ahead, the future of manufacturing in Southeast Asia holds immense potential, marked by notable trends and challenges. Manufacturers should look into investing in automation, robotics, AI, and IoT to improve efficiency, reduce costs, and stay competitive.