Manufacturers embrace AI & tech to overcome supply chain pressures

World Manufacturing Day has shed light on the critical issues and ongoing transformations within the global manufacturing sector.

Manufacturers across regions are contending with a wide array of challenges, with supply chain pressure, rising costs, and persistent skills shortages among the most pressing. Industry voices assert that, despite these obstacles, manufacturing remains a key contributor to the economy and a driving force for operational adaptation.

Importance of the sector

Steve O'Keefe, Regional Vice President UKI at Epicor, commented on the enduring significance of manufacturing, underscoring its foundational impact on economies and everyday life. He stated that manufacturers' ability to adapt and deliver in the face of challenges motivates ongoing industry optimism.

"Manufacturing Day is a reminder of the vital role manufacturers play in driving economies and shaping the way we all live and work. Manufacturers everywhere are navigating challenges like supply chain pressures, rising costs, and skills shortages. Yet what continues to inspire me is their ability to adapt, innovate, and deliver."

O'Keefe emphasised that technological advancements, particularly in artificial intelligence, are making a tangible difference on the production floor. He noted that AI solutions are facilitating process efficiency and allowing technical staff to engage in higher-value tasks. This, in turn, strengthens supply chains and opens new channels for innovation.

He added, "Today is a chance to celebrate that progress and to recognise the people and businesses driving it."

Supply chains in the spotlight

The resilience of manufacturing is increasingly viewed through the lens of supply chain strength and flexibility. Alan Win, Founder and CEO of Middlebank Consulting Group, highlighted the evolving role of supply chains in today's manufacturing businesses. He described the transition from viewing supply chains as merely operational support towards understanding them as sources of strategic value and resilience.

"In manufacturing, supply chains are no longer just operational backbones but are central to strategic resilience and growth. AI, IoT, and blockchain are enabling companies to anticipate market shifts, improve collaboration across suppliers, and optimise production and logistics with greater foresight."

"Businesses that integrate these insights into decision-making can respond more quickly to disruptions, reduce waste, and maintain quality standards, turning supply chain agility into a competitive differentiator."

"Those who view supply chains strategically, not just operationally, position themselves to navigate global complexities, drive innovation, and secure long-term performance in an increasingly dynamic market," said Win.

The adoption of digital technologies, such as AI, the Internet of Things (IoT), and blockchain, is having a significant impact on forecasting, production, and supplier engagement, according to Win. By developing real-time visibility and collaborative platforms, manufacturing organisations are improving their responsiveness to fluctuating market demands and unforeseen disruptions.

Technological transformation

The implementation of automation and AI-powered systems has expanded into a growing range of industrial applications, supporting both operational efficiency and innovation capacity. Industry experts suggest that this digital transformation is not only streamlining workflows but also providing paths for manufacturing professionals to pivot towards higher-value roles, including data analysis, process optimisation, and product development.

For manufacturers, integrating technology with traditional methods is seen as central to maintaining competitiveness and meeting evolving market expectations. With markets and regulatory environments remaining unpredictable, the ability to adapt supply and production workflows continues to play a decisive role in operational sustainability.

Adapting for the future

Within the sector, the skills gap remains a persistent issue, with manufacturers seeking personnel equipped to manage, maintain, and interpret both digital systems and traditional machinery. Companies are reportedly investing in upskilling initiatives to create a workforce that can contribute to both operational resilience and technological progression.

Both O'Keefe and Win point to the importance of strategic planning and investment in technology to navigate current uncertainties. While the challenges facing manufacturers are significant, industry leaders highlight the ongoing drive to adapt as a testament to its enduring role in the global economy.