Manufacturers facing inflation, rising energy costs, tariffs, changing demand, and workforce shortages are finding that disruption is strengthening rather than slowing the case for modernization. AI, automation, and better use of operational data are becoming important tools for controlling costs, improving efficiency, and making more informed supply chain decisions, tells Design News.
Amy Julian, partner at Armanino, explains that manufacturers under financial or market pressure can use AI and data to understand their operations more clearly. Better access to information can help companies determine appropriate inventory levels, evaluate supply chain requirements, and align costs with stable or declining demand. AI can also improve efficiency by helping manufacturers identify where processes can be streamlined or automated.
Growing manufacturers face a different challenge. Increased order volumes and complexity can expose limitations in existing production systems. Companies may need to rethink shop floor operations, workflows, and supporting applications as they scale. For these businesses, modernization provides a way to expand operations without allowing complexity to overwhelm existing processes.
Julian argues that current macroeconomic pressures are therefore accelerating investments in technology rather than putting them on hold. Digitalization can produce gains not only on the factory floor but also in back-office processes, extending the value of modernization across the organization.
Engineers have an important role in making these investments successful. The strongest implementations combine new technology with the practical knowledge of people performing the work every day. Close cooperation between engineers and technology teams helps ensure that automation and AI address actual operational needs rather than becoming isolated technology projects.
For manufacturers, the message is to treat disruption as a reason to modernize. AI, automation, and accessible data can help companies respond faster to uncertainty, improve decision-making, control costs, and build operations capable of adapting to changing market conditions.
