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6 impacts and opportunities for manufacturing from the COVID-19 pandemic

2022-11-4

 
 
Amid the COVID-19 pandemic, the manufacturing industry is returning to work one after another. While manufacturers have been impacted, some new industry development trends have been incubated, specifically in the following six aspects:
 
 
 
 
1.     Biological and medical science industries will usher in huge development opportunities
 
In the rapid development of urbanization, people's demand for health management and medical care will be increasingly high, driving the development of related industries. The new outbreak will greatly accelerate the development of our biological and medical science industries.
 
Previously, Chinese pharmaceutical enterprises were still mainly generics, with insufficient innovation ability. Through this epidemic, the country will pay more attention to the development of various drugs and reagents related to virus detection, suppression and treatment, and the public's awareness of the epidemic and virus will be further improved. More and more pharmaceutical companies will strengthen the research and development and manufacturing of innovative drugs and medical devices.
 
At the same time, the collaboration of different medical institutions across the country also presents a new trend. After the epidemic, the country will further develop telemedicine and intelligent medical treatment to solve the problem of insufficient distribution of medical resources, and manufacturing enterprises that provide related products and solutions will usher in new development opportunities.
 
 
2.     Smart drive the development of related industries
 
The outbreak has raised a host of questions, such as how to quickly and accurately locate every suspected COVID-19 patient, suspected infected person and close contact. How to monitor everyone's health status in a timely manner? How to give early warning of diseases? In fact, smart city, smart home and smart transportation can better solve these problems, and then promote related enterprises to develop more smart products and applications based on smart mobile terminals.
 
 
3.     Intelligent manufacturing will be deeply integrated into China's manufacturing industry
 
The outbreak, which occurred during the Spring Festival, will have a direct impact on the manufacturing sector, with a large number of workers unable to return to work on time, especially in small and medium-sized manufacturers. Leaders of manufacturing enterprises will inevitably pay more attention to intelligent manufacturing, less humanization and flexible production to cope with the fluctuation of labor force. The workers of the future may not be simple manual labor, but will be able to control more complex machines, intelligent machines, highly skilled workers.
 
In addition, in the process of fighting the epidemic, the production of masks, protective products and other related products cannot keep up with the demand. Many enterprises, such as Foxconn and GAC Automobile, have started to produce their own products. Therefore, enterprises of medical supplies and medical devices will be encouraged to pay more attention to the application of flexible automatic production lines and build smart factories to reduce the dependence on labor.
 
At the same time, enterprises will also focus on improving the intelligence of the logistics supply chain, and enhance the anti-risk ability of the supply chain. Like whether zero inventory is reasonable, it is also worth reassessing. In fact, it is necessary for enterprises to maintain a certain inventory of key raw materials and parts.
 
 
4. Manufacturing companies will accelerate their digital transformation
 
Although many enterprises have paid lip service to digital transformation, in fact, many enterprise leaders do not particularly understand the nature of digital transformation, believing that it is just online collaborative office and video conference, which will only increase operating costs. The fact that many companies have chosen to let their employees work online since the outbreak reflects the real need for digital technology. It can be predicted that manufacturing enterprises will put forward more practical demands for remote collaboration work, which may include the transformation of six aspects: business model, research and development model, manufacturing model, service model, operation model and decision-making model.
 
The in-depth application of digital technology can help enterprises improve the efficiency of employee cooperation, improve the transparency of production and operation, help enterprises cope with the fluctuation of market demand more effectively, shorten the time to market of new products, and even innovate the business model, starting from the sales end of digital mode. The fundamental value of digital transformation is to help managers at all levels of manufacturing enterprises really understand the data from all aspects and see the right trends from the data.
 
 
5.     The realization of remote intelligent service of Industrial Internet
 
Two temporary hospitals, Huoshenshan and Leishenshan, were set up in Wuhan. Within a few days, there was a huge demand for construction machinery and equipment and related materials. Through online live broadcasting, the actual supervision of the video was realized. Therefore, based on the industrial Internet platform, the optimization of equipment and material scheduling is also a realistic demand. Obviously, the manufacturing service industry and industrial Internet platform applications will have a more clear direction of development.
 
In the event of a virus epidemic, earthquake, typhoon and other catastrophic events, the manufacturing company's maintenance service personnel often cannot arrive at the scene in time. Therefore, the remote intelligent service based on the industrial Internet, remote guidance through the Internet monitoring and other technologies, fault warning based on the monitoring of equipment running status, these intelligent services will gradually become a reality from the concept.
 
 
6.     Health, safety and environmental management will become a major theme in manufacturing
 
Due to the characteristics of the manufacturing environment, when a situation like COVID-19 occurs, close contact between employees will lead to cross-infection, which will be a huge disaster for the company. Therefore, in the short term, it is still necessary to consider the health and safety of employees while accelerating the resumption of work and production. In the long run, it will encourage manufacturing enterprises to strengthen environmental health and safety management and strengthen disaster warning mechanisms.
 
 
The COVID-19 pandemic has not only had a profound impact on China's domestic and production services, but also on the development trend of the manufacturing industry. It is more important for enterprises to have the ability to analyze macro social data in order to cope with emergencies in advance.

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