The manufacturing industry is fraught with uncertainty. Businesses face a host of challenges, including shifting supply and demand, evolving regulatory environments and a proliferation of sustainable and circular processes, meaning that they need to get creative in how they approach operations. From chemical manufacturing, to energy storage and renewables, to electronics (which increasingly rely on materials from process manufacturing), the pressure is on to convert increasingly diverse material into valuable product in high-demand industries.
According to industry outlook, there is an expectation that chemical manufacturing will continue to innovate to build resilience, drive growth, and adapt to changing markets. This will not be an easy balance — and any long-term investments will need to show tangible return on investment (ROI) today before scaling to the needs of tomorrow.
Encouragingly, manufacturers are already laying the digital groundwork, with a smart manufacturing survey of 600 industry executives revealing that more than half are using cloud computing and data analytics at the facility or network level. Furthermore, 88% expect smart manufacturing investments to continue or increase.
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The emergence of purposefully designed digital manufacturing platforms
Digital manufacturing platforms are gaining traction as a solution for the economic and regulatory challenges facing the industry. These platforms, inclusive of software (such as manufacturing execution systems) integrate with plant floor systems (such as Scada/DCS), are the connective tissue between all elements that make up a line. This includes the plants, the people, materials, machines and shipping and receiving functions.
Managing each individual touchpoint or function within a manufacturing line is increasingly difficult due to the speed with which robotics and materials move. Furthermore, siloed decision making is an ineffective means to run a business, resulting in wasted time and effort from operational leaders and managers trying to understand what is happening at different stages of the process.
Digital manufacturing platforms change the game. The platforms centralize data and information into a single pane of glass, while also affording the opportunity to use intelligent tools to better plan, predict and modify operations. This shifts the equation from singular choices to dynamic, data-driven decisions. According to a recent NAM Manufacturers’ Outlook Survey, 73% of manufacturers cited trade uncertainties as their top business concern and more than 72% reported difficulty finding skilled production workers.
These pressures will accelerate the adoption of digital manufacturing platforms and manufacturing execution systems that are purpose-built for the rigors of chemical and other intricate process manufacturing. This expansion will help businesses translate innovative plans into timely, accurate production on the back end — and maximize the ROI from smart machines that are already filling up manufacturing lines.
Helping manufacturers meet production demands
Below are some pathways via which digital manufacturing platforms (and related software) can enable manufacturers to stay flexible and adaptable amid evolving markets and customer needs.
Shorten windows between business plans and product development. In these turbulent times, manufacturers are looking for ways to shorten the window between planning and development, reassessing portfolios and prioritizing their most valuable assets. By using DMP to make more accurate projections and quickly translate plans into final products, businesses can achieve the ROI and faster time to value they’re looking for.
For example, manufacturing platforms that sync advanced virtual simulation tools and digital twins with material flow can eliminate the need for physical prototyping, helping businesses get to production faster. Doing so also limits waste and use of expensive raw materials during pilot phases. Those expensive inputs can instead be used for final production or as part of customer relationship management for quality control.
Implement new chemical or material mixes with speed and accuracy. Traditionally, monitoring materials and promoting end-to-end traceability has been incredibly difficult in any chemical or process manufacturing scenario. The lack of discrete structure when working with chemical processes makes it challenging to maintain batch genealogy, track formulation lineage across multi-stage reactions and tag intermediate mixes back to raw material lots. Tracking and tracing through continuous and batch hybrid processes is fraught with sensor limitations, variable reaction conditions and potential safety hazards.
Working with a digital manufacturing platform or manufacturing execution system that is born from experience in adjacent process verticals, such as batteries, specialty chemicals, or advanced materials, results in fewer technical hurdles and a wealth of knowledge on how to design systems purpose-built for these intricacies. These systems are designed for quick deployment while offering configurability based on specific use cases.
Keeping production costs in line to reduce waste and error. Nearly 80% of manufacturing executives say they plan to invest 20% or more of their improvement budgets toward smart manufacturing initiatives, with a focus on foundational tools and technologies. These tools and technologies include automation hardware, data analytics, sensors, and cloud computing to support workers.
The result of these efforts will be more intelligent machines that produce a lot of data – and that data needs capturing, organizing, and analyzing. Digital manufacturing platforms bring machine-level data alongside data from other systems, including ERP, for a proactive and predictive approach to maintenance and production. In other words, the platforms take all the data operators are generating in manufacturing and make it usable.
Develop a proactive approach to sustainability and compliance. Manufacturers are at a critical juncture in the journey toward circular, renewable manufacturing. By developing innovative methods to produce and use more friendly materials, for example, manufacturers can strengthen sustainability initiatives. In addition to optimizing processes, recycling and reuse become an important innovation driver — and knowing the specific makeup and chemical compound of each product takes on heightened importance.
Digital manufacturing platforms and manufacturing execution systems are designed to better track material movement. They take the guesswork out of sustainability and eliminate the need for paper-based or spreadsheet tracking, bringing new levels of visibility and traceability to reporting.
A further concern for businesses is that maintaining compliance becomes increasingly more expensive as regulatory burden and rework costs skyrocket. Whether navigating TSCA reporting or EPA emissions disclosure, the cost of staying current compounds. Regulatory burden already costs the manufacturing industry about 25% more than it did a decade ago, with non-compliance estimated to cost more than 2.7 times more than maintaining compliance. Digitizing traceability lowers this risk.
Strengthen supply chain visibility and customer communication. Strong, trusted customer relationships are at the heart of manufacturing excellence. Delivering a consistent customer experience that is underpinned by timely, accurate communication is often the difference between success and failure.
In chemical manufacturing, a single supply disruption — a delayed material shipment, a specification change from a supplier, or demand from a downstream customer —can cascade. Procurement, planning, operations and customer-facing teams all need the same real-time picture: what is available, what is at risk, and what needs to be reprioritized.
Being able to speak the language of customers — and get the right message and the right solution to the right people at the right time — is the difference between successful deals and relationships, and those that flounder on broken trust. Digital manufacturing platforms provide consistent visibility from a smart interface that keeps those in the room at the ready, saving time, energy, and complications.
Capitalize on smart machine investments to maximize ROI. According to a survey conducted by the Manufacturing Leadership Council, about 22% of manufacturers plan to use physical AI by 2027, including robots and humanoids to accomplish sorting, transporting, and other tasks. Manufacturing execution systems play an important role in monitoring and measuring the impact of these smart investments, making them work harder for the business.
The transition to physical AI will also shift the makeup of the manufacturing workforce. According to BLS data, high-tech, high-wage manufacturing has gained ground, and it is expected that this trend will continue to support the evolution of Industry 4.0 and a more automated and changing production line. Operations must keep pace with this movement to avoid churn and wasted investment dollars and execution-level visibility from digital platforms meets this need.
Bridging the gap with digital manufacturing platforms
To remain competitive in a challenging market, U.S. manufacturers will need to make the most of investments in smart technologies to deliver continued growth in the face of challenging economic conditions.
A survey of manufacturing leaders revealed that only 28% called their current operations “smart” or “somewhat smart”. And yet, more than 75% of leaders are expecting that their business will be there in the next two years. This will require swift action to get intelligent systems deployed.
Investing in digital manufacturing platforms (inclusive of manufacturing execution systems) uplevels the potential ROI of every machine, every input and every output.
By centralizing data accessibility and bridging the gap between current manufacturing systems, these platforms will unlock better ways to track, monitor and control complex manufacturing, turning operational agility from an aspiration into a measurable competitive advantage. The manufacturers that move now will be best positioned to thrive — regardless of what the next disruption looks like. ♦
Edited by Mary Page Bailey
Author
Arun Nair is Director, Smart Manufacturing at Panasonic Connect North America. Arun leads the company’s digital manufacturing platform team responsible for SyncoraDMP, a highly configurable platform delivering MES, material management, asset management, IIoT, and advanced analytics solutions for modern manufacturing. He brings together business strategy and deep technical expertise to lead a global, 24/7 organization of managers, software engineers, solution implementation specialists, support engineers, and sales professionals. Under his leadership, the team enables manufacturers to accelerate digital transformation and achieve greater operational visibility, efficiency, and agility on the factory floor. Arun is passionate about driving technology innovation and advancing the future of smart manufacturing through scalable digital solutions