Looking ahead to 2020
The Deloitte 2020 Manufacturing Outlook is packed with projections for the next 12 months. Here are a few of the highlights:
Modest economic growth: Based on the Oxford Economic Model, it’s expected that modest annual manufacturing GDP growth levels may taper for 2019-2020, with projections of 2.7 percent for 2019 and 1.3 percent for 2020 — lower than previous projections of 3.7 percent for 2019 and 2 percent for this year.
Tempered optimism: Compared with the 2018 Manufacturers’ Outlook Survey report, which noted 93.9 percent of manufacturers had a somewhat or very positive outlook on business, the latest report shows that just 67.9 percent of manufacturers are optimistic, with the remaining 32.1 percent having a negative outlook. This mixed view of the sector is expected to be the prevailing sentiment for 2020.
Going green: A survey about the transition to 100 percent renewables indicates that 64 percent of manufacturers plan to source a significant percentage of their electricity from renewable resources in the next five years.
Hitting the goal
The Port of Green Bay surpassed its annual goal of 2 million tons in November when 207,000 tons of cargo moved into and out of the port. As of the end of November, 2,081,962 tons had gone through the port — running about 9 percent higher than 2018 totals.
What to watch in 2020
With the arrival of 2020, Industry Today pulled together a list of its top five manufacturing trends for the next 12 months:
Machine learning and AI: These can help manufacturers improve efficiency and increase profit margins.
5G: This faster-speed wireless service will roll out on a larger scale, allowing connected manufacturers to improve latency and enable real-time communication on a scale not seen before.
Engaging with customers: Companies can use data to create more value for their customers.
Distributed manufacturing: Using small-scale, distributed manufacturing can help companies save on freight costs, reduce lead times and increase responsiveness.
Increased responsiveness: Technology can help manufacturers improve their performance in responsiveness and agility.