What are the key points OEMs will address in 2024?
I work in the Contract Manufacturing (EMS) industry, and one of the nice things is that I get to work in many industries and talk about the products that will hit the market in 1 to 5 years.
And this is what I see ..........
Key points OEMs will address in 2024!
1-Sustainability and Eco-Friendly Practices:
More and more customers are asking about your carbon footprint and your ESGs. It is no longer the last thing they ask but the first. In the EU, it will be mandatory for listed companies to report their ESG. As of 2025, any company with over 250 employees or a turnover greater than 40M€ will also need to report them. So this has to be a top priority for reporting and our planet in general.
2-Supply Chain Resilience:
The recent global events (pandemic, war, and global politics) have highlighted the importance of resilient supply chains. Using technology to enhance supply chain visibility and flexibility can help mitigate risks. We all know that the next “Allocation” phase will come and you must ensure you are prepared.
3-Cybersecurity:
You probably have heard of a company that has been hacked. Hackers are targeting infrastructure to blackmail payments. As products become more connected, the risk of cyber threats increases. Implementing robust cybersecurity measures is essential to protect end customers, your company’s reputation and sensitive data.
4-Skilled Workforce:
It is getting more and more challenging to find talented people. It is crucial to Invest in the training and development of your workforce to make sure you keep the ones you have and attract talent. A skilled workforce that is trained in the latest manufacturing technologies and practices is crucial for staying competitive.
5-Reshoring:
We all know about the geopolitical issues, and the pandemic has shown how vulnerable and dependent our supply chains are. We have countries and regions wanting to bring back manufacturing. Programs like IRA (Inflation Reductions Act) and huge subventions are offered to companies to reshoring manufacturing. Bringing production back to home countries improves supply chain resilience and reduces dependencies.
6-Power Electronics:
If you look at EV cars, EV chargers, solar and wind energy, battery storage systems, drives, and inverters, they all have power electronics in common. Keeping an eye on technologies like power electronics, advanced battery technology, and new semiconductor materials is crucial to staying current with these technologies. It can position your company to take advantage of fast-growing and changing markets.
7-Engineering Collaborating:
Product and component lifecycles are shortening. Technologies are making giant leaps, and markets are converging. So, the demand for engineering is growing, and many OEMs are having problems finding qualified talent. Let’s be frank: no one can be an expert in everything, so it makes sense to partner with experts and collaborate.
8-AI, Internet of Things (IoT) and Advanced Manufacturing:
As IoT continues to expand, with more devices becoming connected, we now have a massive amount of data in the field, especially in manufacturing. AI will play a pivotal role in analyzing data and helping us make meaningful decisions. Staying ahead of these technologies and integrating them into your manufacturing processes can increase efficiency and reduce costs.
9-Customization and Personalization:
Market are increasingly demanding customized products. This trend requires flexible manufacturing processes that can adapt to creating a wide variety of products in smaller quantities.
10-Quality Control and Testing:
It is no longer a requirement to maintain quality standards; it is now required to exceed quality standards, which is crucial. Implementing advanced quality control measures and testing processes using AI and machine learning can help ensure product reliability and customer satisfaction.
In conclusion:
The key points OEMs will address 2024 are multifaceted and crucial for your evolution and success. The future will be shaped by technological innovation, strategic shifts in production practices, and an increased focus on sustainability and security. As the industry adapts to these evolving trends, OEMs will need to embrace agility, invest in new technologies, and foster collaborative approaches to maintain competitiveness and meet the market’s rising demands. The emphasis will be on creating resilient, efficient, and environmentally conscious manufacturing ecosystems that cater to current needs and pave the way for future advancements.