Manufacturing: 2024 Industry Overview, Insights, and Trends

In this article, we will explore the top trends that are set to redefine the manufacturing industry in 2024 and beyond. The United States’ manufacturing market is expected to grow at an impressive rate of over 3% in the next five years according to Statista, surpassing the rest of the world, thanks to advancements in tech, strong domestic demand, and government legislation. According to the Federal Reserve, industrial production in the United States has increased at an annual rate of 2.5 percent, which is a testament to the industry’s resilience and ability to thrive in ever-changing circumstances.  

According to a Deloitte report, three significant pieces of legislation that were signed into law in 2021 and 2022 include the Infrastructure Investment and Jobs Act (IIJA), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, and the Inflation Reduction Act (IRA). These laws prioritize rebuilding infrastructure, advancing clean energy initiatives, and building out the domestic semiconductor industry, while also aiming to foster job growth, workforce development, and equity causing record private sector investment into the manufacturing industry.  

As the U.S. manufacturing market continues to expand, it is expected to contribute significantly to the country’s economic growth and job creation. The industry’s ability to adapt to changing market dynamics and embrace innovation positions it as a key player in the global manufacturing landscape. These trends present both opportunities and challenges for the manufacturing industry. As we move into 2024, it is essential for businesses to stay abreast of these changes and strategically position themselves to leverage these trends.

In 2024 and beyond, the manufacturing industry will need to focus on four key areas to ensure success. These areas include trends dominating the industry, the impact of AI on smart manufacturing, the future of work in the industry, and cybersecurity.

1. The Top Trends Dominating the Manufacturing Industry in 2024

The manufacturing industry is constantly evolving, and it’s important for manufacturers to stay ahead of the curve. According to a Deloitte  report and an article in Gembah, the following trends are set to redefine the industry in 2024:

• Navigating persistent talent obstacles: With the ongoing shortage of skilled labor, manufacturers need to think about the future of work in the industry. They need to attract and retain talent and create a culture of innovation and continuous learning. They need to invest in reskilling their workforce to keep up with technological advancements.
• Smart factory and the journey toward the industrial metaverse: With the rise of Industry 4.0, manufacturers need to embrace smart factory technologies such as IoT, AI, and robotics. They need to create a connected ecosystem that enables real-time data sharing and decision-making.
• Industry 4.0 - Supply chain digitalization for enhancing performance, resilience, and agility: With the increasing complexity of global supply chains, manufacturers need to embrace digitalization to improve their supply chain performance and resilience. They need to leverage technologies such as blockchain, AI, and IoT to create a transparent and agile supply chain. They need to bring production closer to home and investigate reshoring.
• Aftermarket services as a potential differentiator: With the increasing competition in the manufacturing industry, manufacturers need to differentiate themselves by offering aftermarket services such as maintenance, repair, and overhaul. They need to leverage technologies such as AI and IoT to create predictive maintenance solutions that reduce downtime and improve product quality.
• Product electrification and decarbonization: The US government is investing in electrification and decarbonization of industrial product portfolios, with over $270 billion in climate- and clean energy-related incentives provided by the IRA. Since August 2022, over 125 new manufacturing facilities for clean vehicle and battery technology production have been announced in the United States. Manufacturers will accelerate efforts to achieve carbon neutrality by implementing green manufacturing processes and reducing emissions.

2. The Impact of AI on Smart Manufacturing

With the rise of Industry 4.0, AI is becoming increasingly important in the manufacturing industry. AI can help manufacturers optimize their operations, reduce costs, and improve product quality. According to a Forbes  article, AI can help manufacturers in the following ways:

• Predictive maintenance: AI can help manufacturers predict when equipment is likely to fail, allowing them to perform maintenance before a breakdown occurs.
• Quality control: AI can help manufacturers detect defects in products, reducing the likelihood of defective products reaching customers.
• Inventory management: AI can help manufacturers optimize their inventory levels, reducing the likelihood of stockouts and overstocking.
• Supply chain optimization: AI can help manufacturers optimize their supply chains, reducing lead times and improving delivery times.

To succeed with AI in smart manufacturing, manufacturers need to invest in the right technology, hire the right talent, and create a culture of innovation and continuous learning.

3. The Future of Work in the Manufacturing Industry

With the ongoing shortage of skilled labor, it’s important for manufacturing leaders to think about the future of work in the industry. According to an article titled The future of work in manufacturing jobs by Deloitte Insights , the  following trends are set to redefine the future of work in the manufacturing industry:

• Remote work: With the rise of digital technologies, remote work is becoming increasingly common in the manufacturing industry. Manufacturers need to create a flexible work environment that enables employees to work from anywhere.
• Upskilling and reskilling: With the increasing complexity of manufacturing operations, manufacturers need to upskill and reskill their workforce to keep up with the latest technologies and trends.
• Collaborative robots: With the rise of cobots, manufacturers need to create a collaborative work environment that enables humans and robots to work together safely and efficiently.

4. The Role of Cybersecurity in the Manufacturing Industry

With the increasing threat of cyber-attacks, cybersecurity is more important than ever in the manufacturing industry. According to a report by Deloitte, the following trends are set to redefine the role of cybersecurity in the manufacturing industry:

• Ransomware attacks: With the increasing prevalence of ransomware attacks, manufacturers need to create a robust cybersecurity strategy that includes regular backups, employee training, and incident response planning.
• Supply chain attacks: With the increasing complexity of global supply chains, manufacturers need to ensure that their suppliers and partners are also following best practices for cybersecurity.
• IoT security: With the increasing use of IoT devices in the manufacturing industry, manufacturers need to ensure that these devices are secure and not vulnerable to cyber-attacks.
• Cloud security: With the increasing use of cloud computing in the manufacturing industry, manufacturers need to ensure that their cloud environments are secure and not vulnerable to cyber-attacks.

We are bullish on the manufacturing industry in 2024 and beyond. The industry should benefit from ongoing improved legislation that creates more private investment, the continued recovery of supply chain issues, and the lowering of inflation. Technological advancements and economic improvements should also help with industry growth.  

To stay ahead of the curve, manufacturers must embrace a forward-thinking approach and make informed decisions.  They can unlock new levels of efficiency by recognizing the potential of smart factories and advanced technologies such as AI. Reshoring offers an opportunity to build resilience and mitigate supply chain risks, while prioritizing carbon neutrality demonstrates a commitment to sustainability and attracts eco-conscious consumers.  

Investing in the workforce by upskilling, reskilling, and enhancing remote work capabilities is critical as well. Manufacturers must also continue to maintain a strong cybersecurity posture. According to a recent report by Statista, manufacturing had the highest share of cyber-attacks among the leading industries worldwide, accounting for nearly 25% of the total cyber-attacks.  

With visionary leadership and a proactive mindset, manufacturers can position themselves as industry leaders and shape a prosperous future for the sector. By doing so, manufacturers can ensure they are well-equipped to tackle the challenges of the future and remain competitive in the global market.

‍