Industry Updates

2023: Goals, Predictions, Challenges & Opportunities

By January 12, 2023 January 23rd, 2023 No Comments

Resilience and its counterpart, innovation, are the hallmark of a business’s success. This has never been truer than in the past few years. The ability to learn, pivot and integrate new technology has been a differentiator in outcomes. Here at Baumen we have witnessed some heroic efforts to navigate and strategize around unplanned events. 1 The innovation that has resulted from these challenges has created a Canadian OEM culture of resilience and optimism for 2023. Take for example Project Arrow 7 which is making use of Ontario’s complete end to end automotive supply chain. 7 Seeing the opportunity in the challenges is the strong message for the coming year. Helmet up and enjoy the ride. 

Although there have been significant gains and improvements this past year, most OEMs on some level still face bottlenecks in their supply chains, shortages of components, increased shipping costs, rising interest rates, a tight labour market, and shifting consumer demands. To maintain growth, Canadian manufacturers can draw on their resiliency and 2022 successes 3 and look to 2023 with strategic optimism as ongoing disruptions and increased energy costs will continue to challenge. 

Topping the list of those challenges is a diminished work force demanding better wages, life balance and working conditions. As the existing work force ages out, attracting, hiring, and retaining young talent is critical to the success of manufacturing going forward. 2 ,6 

Leading the list in opportunities for OEMs is big data, digitization of everything, 2 and the integration of customer experience with servitization or Product as Service (PaaS). With Industry 5.0, Ai, predictive analytics, and the ability to collect mountains of relevant data, OEMs are in a unique position to enhance customer experience and manufacture products that are built for predictive maintenance. 2 With the digital and technological changes predicted for manufacturing, quality analysis of the data funneling into manufacturers’ ecosystems continues to be the leading indicator of success. “2023 will be about moving beyond visibility into Big Data, and instead finding meaning in and discovering the benefits of Big Data.” 2 Perhaps further opportunity can come from the shift from Industry 4.0 to industry 5.0 3 with “advanced robotics in smart co-working environments”. 3 

In summary, Baumen understands the best OEM strategic moves for 2023 to be:

  • Analysis and integration of Big Data 2
  • Agile supply chains 4
  • Outsourcing manufacturing to focus on core competencies 4
  • Strategic implementation of technology supporting digital manufacturing 4
  • Prepare a manufacturing readiness strategy to get ready and stay ready 4
  • Digital twins 2
  • Re-shoring and Near Sourcing 2, 5, 7

The start of a new year for any business is also the start of a journey towards new goals and targets – matching industry predictions with business acumen, common sense, and gut instincts. “The question facing companies as we look ahead to 2023 is how to continue, for yet another year, to plan for the unplanned.” 1 If there is one thing that is consistent with all 2023 predictions it is that this year will be a year of turning challenges into opportunities 2  and thinking outside the box.