In today's competitive manufacturing landscape, staying ahead requires more than maintaining the status quo. Modernizing facilities is essential for improving efficiency, performance and resilience. This article explores five practical steps manufacturers can take to achieve these goals, from gathering data to leveraging expert project management. Implementing these strategies ensures facilities meet industry standards and are positioned for future success.
1. Organize data inventory
Manufacturers must compile comprehensive data on operations, including asset inventories and current technologies such as computerized maintenance management systems (CMMS), utility bill management (UBM) and energy management systems (EMS). This data helps plant managers benchmark facilities and identify areas for improvement.
2. Compare performance to set priorities
Identifying low- and no-cost opportunities for modernization helps manufacturers determine which plants lead or lag in efficiency, performance and resilience. Improving lagging facilities can yield significant savings. These insights guide workflow changes, software adoption and tracking scorecards. Plant managers benefit from understanding their site’s performance relative to peers, fostering engagement and sharing best practices.
3. Implement low-cost 'quick wins'
Fast-start solutions in underperforming plants, including preventative maintenance strategies, can yield immediate savings. Elevating these sites to industry standards strengthens the business case for continued modernization.
4. Develop a modernization roadmap
Manufacturers should implement, manage and monitor interconnected facility assets and systems. A multi-year roadmap for medium- and long-term projects ensures strategic budget allocation and efficient capital spending.
5. Leverage expert project management
Expert project management fosters collaboration, budget control and efficient project completion. Honest, data-driven discussions bridge gaps between assets, budgets and teams. Continuous monitoring and reporting help sustain improvements, leading to a more efficient, high-performance future.
By following these five steps—organizing data, comparing performance, implementing quick wins, developing a roadmap and leveraging expert management—manufacturers can achieve significant operational savings and enhance overall performance. Ongoing monitoring and data-driven conversations ensure facilities remain efficient and resilient, paving the way for a productive future.
So what is next?
The stage is set for transformation
The US manufacturing sector is poised for significant improvements through digitalization and modernization. The sector is a cornerstone of economic health, with the US ranking as a global manufacturing leader, second only to China. Despite a slump in 2023 due to offshoring, supply chain issues and training gaps, investments in modernization are driving a resurgence. Factory construction has surged to $200 million per month, supported by substantial government grants.
Digital transformation is a major industry focus, with 80% of leaders implementing technologies to enhance efficiency and equipment effectiveness. Comprehensive controls and monitoring across various sectors, from automotive to food production, are fostering resilience against unexpected costs and disruptions.
Key drivers of modernization include global competition, regulatory compliance, economic shifts, volatile energy rates, aging infrastructure and sustainability goals. Despite challenges, today’s environment presents opportunities for smart investments that reduce costs, improve sustainability and maintain competitiveness.
Where manufacturers are investing
Manufacturers are making strategic facility decisions to achieve higher performance, efficiency and resilience. Key investment areas include industrial automation, carbon neutrality strategies, artificial intelligence (AI), and the Internet of Things (IoT). Companies of all sizes are prioritizing facility performance, digital transformation and sustainability.
Why manufacturers are investing
Industry leaders focus on four main goals: cost optimization, operational efficiency, risk mitigation and regulatory compliance and maintaining a competitive edge. Large and complex manufacturing facilities present significant opportunities for improvement across plant equipment and building systems when analyzed across a portfolio.
In conclusion
The US manufacturing sector is entering a transformative era. Strategic investments in digitalization and modernization address past challenges while fostering resilience and competitiveness. By focusing on facility performance, digital transformation and sustainability, manufacturers position themselves to optimize costs, enhance efficiency, mitigate risks and maintain a competitive edge. As modernization efforts continue, the sector is well-equipped to navigate global market complexities and drive sustained economic growth.
