MES THINKING
Bright outlook for the US plastic molding industry in 2024
2024 should be a good year for the US Plastics industry according the chief economist at the Plastics Industry Association. He suggests that the industry slow down has hit rock bottom, which could signal a year of growth for the sector. This sentiment is backed up by a report from Plastics Industry who are forecasting strong growth, fuelled by an increase in demand for high performance plastics.
The plastics industry will continue to be an important player in global manufacturing which provides opportunities for growth. So the question is ‘how to capitalize on these growth opportunities?’
The industry is known for its innovation, and advancements in technology and well placed to take advantage of these opportunities. Perhaps the biggest challenge is how to take advantage of the sector growth, without incurring significant costs as a business.
Improving business performance in plastic molding
All plastic molding businesses are faced with the same challenge: How to manage the cost of production in order to deliver plastic products at a price that is both attractive to your customer and profitable for you? Small percentages of improvement can equate to significant uplifts in margin and profitability.
Every plastics moulder is looking at the following aspects of their business, to manage both their current business levels as well as growth, without adding more fixed and variable cost.
- Processes
- People
- Knowledge
- Equipment
- Materials
- Data
Obstacles to you improving performance are inevitable, but technology is proven to help and make these challenges easier to overcome.
The key to enhanced efficiency
The US plastic molding industry faces a myriad of challenges, but if the economists are right, there is also good potential for growth and significant opportunities for those ready to embrace them.
Many businesses will be showing increased revenue as a direct result of the increase of raw materials and overheads, which cannot be attributed to real business growth.
Many have also moved away from JIT (just in time) to carrying more raw materials to ensure efficiency of productions line and reduce bottlenecks caused by their supply chains. This eats into capital and can potentially strangle growth opportunities.
The obvious solution to many of these, non-insignificant challenges is digital transformation.
The phrase ‘digital transformation’ often conjures up images of high cost and high disruption for the business, along with a long project of implementation, but the reality can be very different. Check out the guide to machine connectivity. Its easier than you think!
The imperative of digital transformation
Digital transformation in the plastic molding industry is more than just an adoption of new technologies. It is a foundational change in how businesses operate and deliver value to customers.
The core of this transformation for manufacturers lies in production monitoring – a critical component that aids in understanding, controlling, and optimizing the manufacturing process.
This transformation, particularly when it comes to production monitoring, is not just a trend but a necessity to enhance efficiency and optimize your Overall Equipment Effectiveness (OEE).
Production Monitoring: A gateway to improved efficiency
Production monitoring involves the use of digital tools and technologies to track, analyze, and optimize various aspects of the manufacturing process. This includes real-time monitoring of equipment performance, product quality, and workflow efficiency. By implementing advanced sensors and data analytics, manufacturers can gain insights into every stage of the production process, leading to more informed decision-making.
This enables manufacturers to better manage and improve business performance in the following areas, mentioned earlier:
- Processes
- Knowledge
- Equipment
- Materials
- Data
Your people are a huge asset, and even with the best processes in place, businesses still rely on their people. Its their knowledge and skills that enable your performance. Arm them with tools such as production monitoring and see the value.
Enhancing efficiency through data-driven decisions
Digital transformation enables a shift from traditional, often reactive, operational models to proactive and predictive approaches. Through data analytics and real-time monitoring, plastic molding businesses can anticipate issues before they arise, plan maintenance more effectively, and optimize production schedules. This not only increases efficiency but also reduces waste and operational costs.
This access to real-time data enables businesses to make data-driven decisions.
Get excited about the year ahead
We hope that the commentators and economists are right about 2024 being a year of growth and opportunities for the US plastic mould sector. However, as Edgar Fielder is quoted as saying “if you ask five economists, you’ll get five different answers”.
Regardless of the accuracy of the predictions, the sector is innovative and can embrace the benefits offered by digital tools such as Production Monitoring, which include:
- Cost Management: Efficient cost management remains crucial, especially in a competitive market. This includes optimizing production processes, managing raw material costs, and exploring cost-effective solutions without compromising quality.
- Quality Control: Maintaining high standards of quality control is essential for customer satisfaction and reputation. Implementing rigorous testing and quality assurance processes can help in maintaining these standards.
- Measurement and reduction of scrap: Clear visibility of your waste and scrap, which is often missed when using manual processes. A small percentage reduction in scrap can amount to a significant uplift in margin and profits.
- 24/7 visibility: digital tools such as production monitoring provide you with invaluable access to what’s happening on the factory floor 24/7 from any device. Being able to see and act in real time, reduces downtime and improves efficiency.
- Real time data for data-driven decision making; Accurate data is key to smarter decision making. Digital transformation enables clearer view of all aspects of your processes, in order to make improvements.
Even in a challenging and highly competitive market place, US plastic molders have opportunities to adapt and embrace the changing landscape, which will deliver bottom line results.
Would you like to learn more?
If you’d like to learn more about how you can implement production monitoring software, talk to one of our experts:
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How it works
Getting started with Intouch is as easy as 1, 2, 3
1. Book a demo
Let us show you what we can do. Jump on a demo call and our friendly team will take you through the Intouch system and answer any questions you might have.
2. Enjoy a free trial
Don’t just take our word for it! We’ll lend you our technology for a 60-day free trial so you can see exactly how it can benefit the everyday operation of your business.
3. Receive ongoing support
It doesn’t end there. If you decide Intouch is the right production monitoring system for you, we’ll work with you to help you take control and make significant improvements in OEE.