Blog written by General Manager Bill Pollock
As technology continues to advance there are many trends to follow and countless changes to expect in 2023. Without doubt, technology is moving at an ever-increasing pace. There are too many advances happening to list them all. Which trends might have a more immediate impact on the world and the United States in particular? I’ve taken a look at some of the trends that impact us and our clients directly at Re:Build Optimation and Re:Build Manufacturing.
- Supply Chain and Logistics
One of the largest challenges in 2022 was logistics and the supply chain connected to them. These challenges are certain to continue into 2023. The causes of the disruptions are varied and include things like weather, fuel costs, and international politics. The cost of fuel, import tariffs and shipping costs are exacerbating the problems. Many US manufacturers are looking at reshoring and nearshoring manufacturing to address these problems. A recent survey by Thomas Regional found that more than sixty percent of US manufacturers have indicated they are considering reshoring to the Americas. The rise of fuel costs and the security concerns associated with Chinese manufacturing will see this trend continue in 2023. In some cases, manufacturing will be brought back to Mexico rather than the United States. Where labor costs have a larger impact and automation can’t effectively reduce it, lower labor costs can still be achieved there and the cost and time delays with shipping can still be avoided.
- Advances in Autonomous Systems
Partly in responses to the supply chain issues, and partly to reduce labor costs, the development and use of autonomous systems will continue to advance in 2023. A majority of warehouses are already nearly autonomous. The final leg of the supply chain will become more autonomous in 2023 with increased delivery by self-driving vehicles, robots, and drones. Retail stores, especially fast-food chains, and other restaurants will take advantage of autonomous and automated systems to replace unavailable and expensive labor. Advances in AI will allow these autonomous systems to be more effective and less prone to failures and errors.
- Advances in Green Technology
Concerns with carbon emissions continue to grow. There are increased incentives from governments to find new technologies to reduce these carbon emissions. These come in the form of grants, tax credits and punitive actions such as fees, taxes and fines. Numerous companies, both large firms and startups, are working on developments to achieve carbon reduction goals through various means. Green hydrocarbons, hydrogen fueled processes and carbon capture of all kinds will be advanced further in 2023. Wind farms will become more efficient. Larger solar arrays will become more common place with a higher percentage of the solar cells being manufactured in the United States using newer, more cost-effective technologies. Each of these advances will enable less centralized generation of electric power to fuel homes and charge the growing number of electric cars.
- Electric Vehicle Advances in 2023
A complex set of new federal tax credits are beginning to provide incentives for manufacturers to enter the US EV market, especially where the EVs can be manufactured in the United States. It may take time before a significant percentage of new vehicles are EVs but consumers are coming to the realization that Tesla is not the only option available. At lease two dozen new EV options will be on the market in 2023, and hundreds more in the next few years will follow. Newer options and newer technologies will be part of an effort for manufacturers to achieve market share. Some buyers will find the perfect EV to meet their needs in 2023. Others may simply become overwhelmed with the choices. Technology advances will allow for lighter batteries with greater charge capability. Charging times will be reduced and driving ranges will increase.
- Security Technology
A mandatory part of technology advancement in 2023 is newer and better cyber security technology. This applies to commercial networks and the cloud as well as manufacturing plants and utilities. Cyber war is a reality, as are other sorts of hacking, hostage taking and ransom attacks. The sophistication of many foreign hacking groups is accelerating beyond the defense capabilities of many, if not most, commercial firms’ IT teams. Firms will find security solutions a critical priority. Software firms will continue to introduce newer and better technologies in 2023. Traditional password logins will be replaced by more two-factor authentication, additional layers of security, physical fobs, and biometrics. One or more of these will be a necessary part of most applications.
- Remote and Virtual Work Options
Video conferencing has been with us for a long time. The pandemic gave economic incentives for improvements and enhancements in products such as Zoom and Microsoft Teams. The result has been an increased opportunity for many to work remotely. The present products still have limitations and in 2023 we should see some significant new enhancements to the tools for remote collaboration. New technologies will be initially developed for commercial and industrial work collaboration but will also be used for play and social interactions. Augmented reality and virtual reality will become a larger part of the online virtual experience. Millions of dollars will be spent to develop AI, avatars, and other advanced technologies. The same technologies will be utilized to provide advanced and personalized training classes and educational systems.
- Economic Technical Considerations
The pressure of inflation and the probable recession that will happen in 2023 will limit spending and capex for many technical firms. This will limit and delay some of the advancements that might have happened. On average, revenue is expected to decline by 2 to 5 percent. Investments will be made in the most promising and strategic technologies. Tax policy and government incentives will also help to determine where investments in technology are made. Investments in B2B technologies are expected to be greater than those in the consumer product areas. These should grow year over year, even with the anticipated economic challenges.
- Sustainable Consumer Products
Both consumers and the manufacturers who create consumer products are increasingly aware of global environmental issues and are willing to spend more to achieve a reduction in carbon and to improve sustainability. 2023 will find increased focus on reduction and recovery of rare earth components in consumer products. Despite consumers’ addiction to electronic gadgets, both people, and the manufacturers who serve them, will be thinking more about where rare earth components come from and how more sustainable products can be created.
At Re:Build Optimation and Re:Build Manufacturing we will be working with clients to help develop and enhance new technologies and domestic manufacturing capabilities for our clients. Reshoring and “made in America” are an important focus of our goal. The use of new technologies will be key to helping make this happen.
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