By 2030, the manufacturing industry in Southeast Asia could generate up to US$600 billion a year. Manufacturing is one of the most significant contributors to Southeast Asia's economy and is undergoing rapid transformation. Some key factors that can influence the manufacturing sector's outlook include technological advancements, sustainability and environmental regulation, and economic growth. Yet, challenges such as inflation, supply chain disruptions, and workforce shortages persist. By implementing advanced automation and data-driven solutions, companies can enhance operational efficiency, reduce downtime, and optimize resource utilization, thus embracing digital transformation.
Rockwell Automation’s 8th Annual State of Smart Manufacturing Report finds that 29% manufacturers believe that smart manufacturing has already helped them to keep pace with market transformations and to mitigate the lingering impact of the pandemic. The streamlined processes help reduce human errors and boost overall output. Cost savings are another advantage, stemming from reduced labor costs and optimized resource utilization. Furthermore, automation services drive more consistent product quality due to standardized production processes. Other considerations are cybersecurity, system integrations, and regulation. Cybersecurity becomes paramount to safeguard interconnected systems against potential threats. Integration complexities between new and existing systems require resolution. Navigating evolving regulations and compliance standards is essential.
However, the biggest barriers to adopting smart manufacturing for APAC manufacturers are employee resistance to technology adoption and change, a lack of skill sets to manage smart manufacturing implementation, and a lack of a clear definition of the value/ROI of smart manufacturing. According to the report, 48% of businesses report a lack of skills to manage smart manufacturing initiatives as the biggest barrier to adoption, while 46% report employee resistance to new technologies as the biggest barrier. Change management is therefore a key component of successful technology.
