The changing face of Singapore’s manufacturing

The way we manufacture has changed forever; partly because of the pandemic, but largely due to the major leap in digitalisation and artificial intelligence (AI), and other technologies such as the Internet of Things (IoT) that bring together all elements of the manufacturing process.

Singapore’s manufacturers are at varying points in their digitalisation journey – some are further along, while others are just starting but are fast-tracking their efforts because the benefits of digitalisation are clear.

Beyond productivity gains, going digital (and smart) enables companies to create revenue opportunities by moving towards higher value-added activities. It also improves visibility across operations, allowing more informed decisions to be made with real-time data, and improves utilisation by maximising asset performance and runtimes of machinery.

This brings us to another key factor for growth – how quickly manufacturers can accelerate their innovation cycles, so they can bring products to market quicker and diversify into new growth markets.

This impacts every aspect of the manufacturing process, from R&D, to production, to logistics through to sales and marketing. Manufacturers need to respond rapidly to change to meet the evolving customer demands and needs.

Just-in-time inventory management and tightening timelines make it more critical than ever for manufacturers to meet deadlines. As customers demand more speed, more reliable cycle times, and more transparent relationships, manufacturers are expecting the same from their suppliers.

The past two years have seen the global supply chain being put to grueling tests, highlighting the challenges that come with supply chains that are increasingly interconnected and spanning multiple geographies.

Widespread disruptions – be it due to the pandemic or episodic crisis such as the Suez Canal blockage – have given manufacturers plenty of food-for-thought when it comes to suppliers and supply chain management.

Local manufacturers are using the lessons learned to re-examine and restructure their supply chain networks to build resilience. There is an opportunity for manufacturers to leverage data to create transparency and better address short and medium-term demand and supply chain implications.

Finding the right talent is one of the common woes among Singapore’s manufacturers, even more so in the Industry 4.0 era. In tandem with the transformation, it is no longer about repetitive tasks done in a structured environment. Smarter manufacturing calls for a completely new set of skills and capabilities.

Thanks to its decades-long investment in education and government’s commitment to continuously reskill and upskill the manufacturing workforce, Singapore is less at risk from automation compared to other APAC peers⁵.

Just as we are excited to see a new manufacturing employee persona, we are also looking forward to more success stories of companies innovating to upskill their employees and help them thrive in an evolving future that involves managing complex projects and working with state-of-the-art technologies.

The dynamic nature of the manufacturing industry and how it interacts with these simultaneous shifts present massive opportunities.

To fully capitalise on them however, manufacturers need to not only understand the interconnected challenges within and outside their organisations, but also take short and long-term actions to be in the best position to seize these opportunities.