Industry Trends & Challenges

Machinery companies face a number of opportunities and threats to their businesses. The companies best placed to deal with a challenge will consider it as an opportunity, whilst those poorly prepared will face the challenge as a threat.

Before the COVID-19 crisis, there were several trends that chemical companies were responding to. As the industry recovers from the pandemic some of those trends remain, and some new challenges have emerged. Those include:

• additive manufacturing
• electronics and software introduction
• Internet of Things
• product-as-a-service

Many trends in the industry have developed over time as solutions to the longstanding challenges but, as implementation accelerates, they will also provide stability after the COVID-19 pandemic.

The COVID-19 pandemic had a major impact on the industry. A large, but disproportional, drop in demand caused by the closure of many manufacturing industries will likely be followed by a period of time where capital is low and investment in new machinery is not feasible. There will need to be a large focus on supply chain resilience in the near term to ensure that correct parts flow through the complex supply chain on time.

Here are some of the key challenges facing the industry:

• cyber security
• labour shortages
• regulatory compliance
• supply chain disruptions

What is the current position of the machinery industry?

The machinery industry faces significant challenges amidst the struggling global economy in 2023. Inflationary pressures on critical commodities like steel and aluminium are placing strains on profit margins, while high interest rates are limiting customers’ capacity to finance large machinery purchases. Although supply chain disruptions are gradually easing, they still weigh heavily on the industry’s operations. Moreover, the persistent shortage of skilled labour remains an ongoing concern, adding to the complexities faced by the sector.

Sustainability and decarbonization will likely be a key concern in 2023. Many machinery companies are anticipated to boost their investment in R&D capabilities and exploit developments in decarbonization and recycling technology. Increasing vertical integration will provide manufacturers with greater visibility into their operations and gives them a better understanding of the processes involved throughout their supply chain. This heightened visibility allows manufacturers to improve their forecasting and planning when taking orders or designing and marketing new products.

Technology