2024 Manufacturing Industry Outlook

In this article, Deloitte discusses the trends and challenges that are expected to shape the manufacturing industry in 2024 based on analysis and survey results.

In 2024, manufacturers are expected to face economic uncertainty, the ongoing shortage of skilled labor, lingering and targeted supply chain disruptions, and new challenges spurred by the need for product innovation to meet company-set net-zero emissions goals. Deloitte’s analysis of Purchasing Managers’ Index (PMI) data reveals that the manufacturing sector was in contraction for most of 2023. So, what strategies should manufacturers consider in order to tackle these ongoing challenges, help scale up production, improve competitiveness, and capture the full potential of the record influx of capital into the industry? To help companies begin to answer this question, the 2024 manufacturing industry outlook explores the following trends:

• Navigating persistent talent obstacles
• Smart Factory and the journey toward the metaverse
• Supply chain digitalization for enhancing performace and resilience
• Aftermarket services as a potential differentiator
• Product electrification and decarbonization

Technology is poised to play a significant role in supporting manufacturers in taking on the challenges they may face in 2024. A recent Deloitte study indicated that a striking 86% of surveyed manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years. Make sure to read the full article for details.