Manufacturing Forecast and Trends until 2024

In recent years, the manufacturing industry has struggled with many problems, including economic uncertainty, labor shortages, supply chain disruptions, and inflationary pressures. Aside from the uncontrollable macroeconomic events and circumstances, these challenges have, to some extent or other, been due to the industry’s adherence to severely outdated practices and systems. 

Historically, manufacturing has been a very sluggish, resistant-to-change industry. That’s understandable, as there’s traditionally been a severe price and time sacrifice to make any facility or equipment reconfigurations. In most cases, the only reason manufacturers could keep business moving as usual, that is, without anything alarming, was that, for many of them, the pull to evolve, innovate, and pivot simply wasn’t much more significant. 

But, over the last few years, events have brought to light the splintered foundation, making clear the considerable, long-term costs and risks that manufacturers are picking up by going around short-term issues. That led both government and company action to try to make the industrial sector trends more resilient and prepare the ground for a broader transformation in the sector. 

Recent legislation that has created positive momentum in the manufacturing industry includes rebuilding infrastructure, clean energy initiatives, and the development of the domestic semiconductor industry, which is all set to accelerate starting in 2024. The Infrastructure Investment and Jobs Act (IIJA), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, and the Inflation Reduction Act (IRA) are already driving the most record private sector investment in the manufacturing industry. 

But the industry is not over yet. The manufacturing sector is poised for cataclysmic change. Still, the eventual fate of the sector begins and ends with an individual company’s commitment to be willing to pivot, adapt, and evolve in new ways. 

Leading Patterns in the Manufacturing Sector

Data Utilization and Generative AI

After the recent boom of generative AI (genAI), manufacturing companies are heavily considering whether their data capabilities are good and whether they’re using data throughout the organization. GenAI presents limitless possibilities to the manufacturing industry. 

Take machine learning algorithms as an example: They can rapidly develop new ideas with fantastic speed and power by analyzing large amounts of data such as market intelligence, customer preferences, past performance, etc.

Generative AI can also be used for predictive maintenance in factories, where we analyze real-time data from sensors and equipment to flag anomalies and potential equipment failures before they fail. That could result in massive cost savings and better operational efficiency. The research indicates that predictive maintenance can lower machine downtime by 30-50% and prolong machine life by 20-40%.

Finally, manufacturer companies’ leadership is starting to realize how generative AI will enhance decision-making by analyzing massive quantities of historical data in seconds—like market trends, customer feedback, and inventory management—to generate insights manufacturers can use to optimize strategy and operations. 

However, we still need to adopt generative AI in top manufacturing industries fully. Even though most manufacturers in these industries agree that they have the right data, they don’t yet have the critical infrastructure to use that data most effectively. In the end, it will be the responsibility of leadership in top manufacturing industries to develop sustainable strategies for bringing generative AI to life and perfecting data utilization.

Digitalization and the Rise of Smart Factories 

More and more manufacturers are looking to transform their factory structures into smart factories, integrating with advanced technologies like AI, 5G, the Internet of Things (IoT), data analytics, and cloud computing. These are all good technologies, and their benefits to factories are infinite in terms of asset efficiency and productivity, cost reduction, safety, and sustainability. 

A recent study found that 83% of manufacturers believe that smart factories will revolutionize how products are manufactured in five years. It is hardly surprising that they have become so popular in the industry. In this time of economic uncertainty, tight labor markets, and increasing expenses, manufacturers are always seeking methods to increase efficiency and area in their own operations. An ideal way to do this is smart factories.

Digital strategy isn’t cheap, but it’s an investment worth making. Very short-term obstacles (training the staff, switching equipment, etc.) should not overshadow the long-term benefits (future cost savings, increased efficiency and productivity, and a strong competitive advantage). 

Artificial Intelligence and Virtual Processes

In addition to the opportunities generative AI offers with data utilization and smart factories becoming realities, artificial intelligence is enabling new workflows, including remote monitoring, servicing, and equipment operation. With digital twins, machine learning, AR, and VR technologies, manufacturers no longer have to be on-site to ensure safe, smooth, and effective production processes. 

Our new 92.58% “virtual process” in news and company documents in AlphaPro indicates that this trend is becoming popular.

Focus on Sustainability and Carbon Neutrality

With ESG and pushing towards a net zero carbon emission future, manufacturers are taking more than ever to be carbon neutral, as investors and consumers continue to prioritize these goals, too. In 2023, federal funds and incentives were used to accelerate the electrification and decarbonization of product portfolios, such as IIJA investments in electric charging infrastructure and IRA (to accelerate EV adoption and accelerate battery manufacturing).

In response to this demand, manufacturers are using various strategies, such as partnering with external collaborators who are willing to promote sustainability, investing in batteries, control and non-battery electric vehicles, low-carbon or renewable fuel technology, and even setting up specialized verticals of zero-emission products and technologies. 

Another highly lucrative strategy is to use artificial intelligence to make more processes sustainable in manufacturing. AI makes data usage more efficient and also identifies inefficient material use, automatically eliminating genuine wastes, further enhancing efficiency and enabling a more sustainable business model.

Even though government, municipal, and institutional contracts, as well as commercial customers, will continue to exert greater pressure on manufacturing companies in 2024 and beyond to align with climate-friendly initiatives and prioritize ESG practices, earnings will remain robust in the evident market conditions.

Shifting Focus From B2B to B2C

Manufacturing businesses in the industrial industry news have traditionally relied on distributors or merchants to market and sell their goods to consumers. However, many customers switched to internet purchasing during the 2020 pandemic, and this industrial industry news tendency is still going strong today.

With all the e-commerce boom these days, manufacturers can offer goods and products on the market and directly to consumers. On the one hand, it gives them more control over brand and pricing; on the other hand, they can interact with their customers better and better figure out what they need to provide a more personalized buying experience. This also allows manufacturers to capture a larger share of the value chain and keeps out some of the costs and complexities of a typical distribution channel. This lets them market their products to consumers at lower prices while still earning a profit. 

Manufacturing companies selling their products B2C include Tesla, where customers can order vehicles directly from Tesla and avoid car dealerships; General Electric, where customers can purchase appliances and parts from the same company; and Warby Parker, a glasses manufacturer that sells its products only in its own stores.

Supply Chain Reorganization & Reshoring

Since the evolution of the COVID-19 pandemic, manufacturing companies have been practicing continual supply chain disruptions, which can take the form of changes in production schedules, lead time, delivery time, and company spending. Today, 38 percent of manufacturers report that supply chain issues are their top issue. 

Most of these issues result from the fact that all manufacturers cut costs by outsourcing parts and electric manufacturing in the early 2000s. With geopolitical tensions and energy shortages, manufacturers are increasingly looking into establishing a domestic supply chain to become more resilient and decrease dependence on other nations. 

In that regard, several legislative efforts have been made to offer strong incentives for reshoring: the CHIPS Act, IJIA, and IRA. Furthermore, 90% of manufacturers desire to develop a diverse supplier network comprising local and regional suppliers.

Furthermore, digital supply chain solutions are increasing supply chain resilience. A Deloitte report indicates that 76% of firms use digital solutions to improve supply chain visibility.

Adopting these digital technologies with reshoring is a crucial strategy for manufacturing enterprises to protect their supply chain ecosystem from unforeseen macroeconomic forces and potential disruptions. 

Addressing Labor Shortages

The persistence of labor tightness in the manufacturing industry over the past several years stems from a production rate slowdown and generous payouts during the pandemic. A study by the National Association of Manufacturers found that almost three-quarters of the study’s manufacturing executives declared losing and retaining quality workers their number one business challenge. 

In 2023, quit rates in manufacturing were 40 percent, and new workers showed up, were trained, and left quickly. 

Therefore, it is challenging for manufacturers to devise actionable strategies to attract and retain new employees. Most finally realize the power of our technology and artificial intelligence to keep workers engaged and motivated. In other words, we’re restructuring training and workforce development efforts to emphasize data analytics and artificial intelligence more. Furthermore, intelligent use of technology and automation will also help manufacturing companies supplement human labor to such an extent that they would not need to hire more people. 


This year, humanoid robots are also making their big debut in production. The carmaker BMW is using a Figure robot to perform assembly operations. According to a Silicon Valley business pursuing this goal, these human-shaped employees should be manning warehouses in around ten years. Manufacturing businesses are preparing for the unheard-of future in which humans will collaborate with technology in previously unheard-of ways. A new era is upon us. 

Impacts on the Consumer and Retail Industry

While it’s important to realize that many of the manufacturing trends mentioned above also apply to the consumer and retail space, it’s worth saying that manufacturing and the consumer industry are tied closely together. Almost all consumer and retail companies deal with manufacturers or have manufacturing processes within them.

For a more in-depth dive into best practices for consumer and retail companies during economic uncertainty that can also apply to manufacturing companies, read our post: Better Navigating Economic Uncertainty: How Consumer and Retail Companies Can Make Sense of It.

Check out our Consumer Goods Industry Trends and Outlook for 2024 for a list of the top trends in the consumer industry and an outlook for 2024 and beyond.

For more about how AlphaPro can help market research, see our Retail Market Research.

Manufacturing Industry Outlook for 2024 and Beyond

Today, the manufacturing industry is confronted with challenges but simultaneously with unparalleled opportunities for transformation. In this Manufacturing Outlook Magazine, we explore how the workflows, strategies, and processes that kept companies alive for a decade or more are beginning to reveal their weaknesses. Companies that want to thrive in this evolving landscape must pivot and embrace new, innovative ways of doing things to remain competitive.

The most critical thing is to abandon the ways of the past, get with the new, and adapt to digital transformation. When is the last time a success resulted from not adapting? Unlike other industries, manufacturing isn’t simply hostage to evolving customer requirements; these technologies offer real solutions to the most widely perceived manufacturing issues: labor shortages, supply chain disruptions, and ongoing pressure to meet climate goals. Not least, they have the potential to completely transform the industry. 

We are moving into a future where manufacturing companies don’t have to hide in the corner, where they are at the mercy of the sellers, the suppliers, and the state of the market. 

Taking advantage of new technologies, such as AI, genAI, and machine learning, to name just a few, manufacturers can regain control of their supply chains, create more direct and synergistic relationships with consumers, and optimize their operations and product quality. 

We are, however, only at the early stages of this evolution. Manufacturing companies are finding themselves at a push and pull point with implementing change, and they don’t expect this to change in 2024. Here, they are interested in discovering and putting data to better use in their organization. Suppose they can lean into the digital transformation and enable a data-centric growth strategy. In that case, they will be much more resilient to potential future disruption and turbulent markets. Resistance to these changes will result in many people having a very tough time navigating the next set of headwinds, and those who resist will be powerless when dealing with market shifts and volatility.

Stay on Top of the Evolving Manufacturing Landscape with AlphaPro

To top manufacturing companies, diligent research and confidence in making decisions are a must. We are Market Intelligence, composed of AlphaPro, a leading provider of 10,000+ high-quality content sources from more than 1,500 leading research providers across more than 1,200 MAJOR Markets, in a single platform on one easy-to-use device: the mobile phone. 

Technology, as well as sourcing, will always keep you updated on the latest manufacturing trends. Using our AI search technology, you can quickly access buried data points in earnings transcripts and SEC filings and match your performance against your peers.

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