Here is an executive overview of six megatrends that are likely to foster a new generation of innovation.
Increase in Mass Customization
Automation is easier than ever
Increasing innovation in new materials
The falling cost of solar kW/h
Labor rates are increasing
Aging population
Increase in Mass Customization
We see an increase in mass customization. From shoes custom sized from a scan of your foot for a perfect fit to furniture that can be configured for your space and lifestyle, everyday items are leveraging mass customization manufacturing techniques. Companies find that product customization meets customers' unique needs, making for happier customers who are repeat buyers. and happier. According to a Deloitte study, successful personalization programs yield more engaged customers and drive up the top line.
Automation is Easier than Ever
The 2022 World Robotics report shows a record 517,385 new industrial robots installed in 2021 in factories worldwide. This is a 31% increase over 2020 installations and is 22% higher than the previous record set in pre-pandemic 2018.
Automation is more affordable, and the payback period is shorter than ever. We have also seen huge improvements in robotic technology like vision, motion, software, and integration. Additionally, companies can implement it gradually in a phased approach.
Increasing Innovation in New Materials
We see rapid growth in material science. As a result, new materials are fostering a new generation of innovations. Two well-known examples are GORE‑TEX fabric and graphene. Graphene is a material of carbon atoms bonded together to form a sheet just one atom thick. The honeycomb arrangement of the atoms allows graphene to be very flexible as well as porous and lightweight.
Falling Cost of Solar kW/h
Image source: http://solarcellcentral.com/cost_page.html
The falling cost of solar will spur new markets. As a result, the following 30 years of solar energy are likely to look very different than the past 30.
As solar power increases, we must find solutions to storage and how solar power interacts with the power grid and other energy technologies.
Labor Rates are Increasing
Wages and salaries increased by 4.7 percent in 2022 and 2.7 percent from a year ago. But, overall, the workforce remains below pre-pandemic levels. There are 3 million fewer Americans working today compared to February 2020. The worker shortage will likely be a future driver for automation and robotic demand.
How do we service our growing customer base with fewer people? Because the labor rates are higher, it now makes automation more attractive.
Aging Population
Our aging population is a key factor in rising labor rates because as people retire, who is taking their place?
As shown in the chart above, people are living longer. The world should reach 8.5 billion people by 2030, up from 7.3 billion in 2015. The fastest-growing demographic will be the elderly, with the population of people over 65 years old at 1 billion by 2030
Again, this is another megatrend that will foster innovation and automation.
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