COVID-19 Impact on Global Smart Manufacturing Market in ICT Industry
ANALYSIS ON IMPACT OF COVID-19 ON THE MARKET
The pandemic originated from China, marking its beginning in 2019 and has been continuously spreading by then to all over the world, so far 218 countries and territories, and 2 international conveyances have been affected with COVID-19, U.S. being on the top with cases reaching to about 15 million, followed by India, Brazil and then by many European countries such as Russia, France, Italy and others. The COVID-19 cases are reaching to the big named countries with strong dominance in the global market which has adversely affected the economy globally. The spread of Corona virus (COVID-19) has led to the global recession, many companies are being bound to take stringent actions of laying of their employees, small business are being shut, manufacturing facilities are being put on hold. There has been a disruption in supply chain of many industries due to restriction in logistics and closing of manufacturing facilities. In addition, the slowdown in economy has lowered the spending capability of individuals and people are saving money for emergencies.
The World Bank stated that the global economy is expected to reduce by 5.2% in 2020. Emerging market and developing economies (EMDEs) are expected to decrease by 2.5% and the economic activity in advanced economies may get reduced by 7% in 2020.
The U.S. witnessed a decline of 4.8% on an annualized basis in the first quarter Q1-2020. In addition, the slowdown in economy has also lowered the spending capability of individuals and people are saving money for emergencies.
The Latin America region is affected by COVID-19 in both human and economic terms. The IMF World Economic Outlook stated a decrease of 8.1% in Gross domestic product (GDP) of Latin America in 2020.
Smart manufacturing is a combination of various technologies and solutions that respond in real time to meet changing demands and conditions. These technologies help in optimizing the manufacturing process and increase the efficiency of the factory output. Smart manufacturing facilities are integrated with various advanced technologies such as Artificial intelligence, Blockchain in manufacturing, Industrial internet of things (IIoT), Robotics, Condition monitoring and Cyber security. The smart manufacturing is driven by the use and analyses of data. The data is collected, analyzed and interpreted in order to perform the required process or action and therefore cyber security becomes an essential part of the whole process.
Robots are being highly adopted in various countries to increase the automation in manufacturing facilities and the comparison is made by calculating the number of industrial robots as a share of manufacturing workers.
also estimated that about 42% of total task hours are expected to be completed by machines by 2022.
IMPACT ON DEMAND AND SUPPLY CHAIN AND LONG TERM STRATEGY ADOPTED BY MANUFACTURERS OR STEPS TAKEN
The pandemic is bound to bring new trends in the market such as increase of digitalization, increasing automation, high adoption of e-commerce and low dependency on human labor. The companies require taking strategic decision in order to sustain their development in this pandemic crisis. Companies have delayed any sort of acquisitions and cut short the capital expenditure in order to maintain their financial conditions, in addition they also need to set the sales projection so as to limit their production and avoid any extra spending. Companies need to align their strategies with the changing market; they need to operate the factories according to the present safety norms of government in order to bring back the production back to pace. Companies need to innovate and develop technologies according to the changing trends of the society.
As the pandemic prevails companies have limited the number of workers in the manufacturing facilities. This can act as a growing factor for incorporating automation to reduce the usage of workers. The industries can follow the path of industry 4.0 and with increasing automation the need for smart manufacturing facilities will increase. It is seen that about 42% of total task hours are expected to be completed by machines by 2022.
Moreover, there is a lack of skilled workforce for doing the appropriate job. About 40% of the employers in Europe were seen to be having trouble in finding the right candidate for the require job in 2013. The shortfall of workforce increases the demand of more advanced technologies that can limit the requirement of manual labor.
The incorporation of industry 4.0 will be the major driving factor for the growth of smart manufacturing facilities. Industry 4.0 is being adopted at a faster rate which is leading to increased productivity. It is seen that about 72% of businesses will be digitized by 2020 from that of 33% in 2016. Moreover, digital transformation is improving the efficiency of value chain with a digital platform of interaction. About 70 percent of organizations are working on digital transformation strategy. The high growth of digitalization in the pandemic will further increase the demand of smart manufacturing. Read more…