The automotive industry is predicted to see a rise in digital transformation in 2018. In order to stay competitive, manufacturers must respond to customer demand and trends. This will include:
- reacting to digital demands
- complying with the increased pressure of industry regulations
In2grate have put together a two-part series on 2018 automotive trends and how ERP can help component manufacturers respond to these. Read on to find out what is predicted to be at the top of automotive manufacturers’ agendas in 2018 and remember to look out for part two on how ERP can benefit the industry.
Digital Demands and Transformation
It is predicted that 2018 will be the first real landmark on the autonomous roadmap. According to the Society of Motor Manufacturers & Traders (SMMT), the main technologies for 2018 in the automotive industry will be connected and autonomous vehicles (CAVs). Consumers want more connectivity which means that in 2018 cars are only going to get smarter. Already cars on the road are being equipped with danger-warning applications, traffic information services and a host of infotainment features as well as active safety modules.
The key feature for 2018 is set to be ‘hands-off’ self-driving on motorways, as permitted by regulations with the driver still being held accountable. Furthermore, it is expected that by 2020 one in five cars will be connected to the internet. The SMMT argues that CAVs will provide huge social, industrial and economic benefits which will transform the lives of 6 out of every 10 people in the UK. These advanced technologies are set to offer new opportunities and freedom to some of society’s most disadvantaged including those with disabilities and older people. The SMMT anticipate that CAV technologies will be so effective in reducing accidents and lowering insurance costs that in the next ten years, the technology will save more than 900,000 lives.
The rapid advances in the digital economy are changing consumer expectations and revolutionising old business models. However, the primary objective of the automotive sector – to be competitive – will remain the same. It is important that suppliers to the industry have a quality ERP system in place that gives them the ability to respond to future technologies. The ways in which manufacturing ERP can do this will be discussed further in part two.
Complying with Industry and Government Guidelines
Reducing the automotive industry’s impact on the environment will continue to be a long-term goal throughout the whole automotive chain in 2018. Since 1999 developments in production processes have meant that the energy used to produce vehicles has decreased by 19% and 91% less waste is entering landfill sites. As a result of the billions of pounds that automotive manufacturers have invested in to develop the cleanest cars over the years, the industry has already made significant technological progress in bringing advanced vehicles to the market.
With tougher tests on cars and vans already being implemented and the 2040 diesel ban on the horizon, real world emissions are set to fall even further. Already the UK automotive industry has cut CO2 emissions of new cars, with average levels down a third since 2000, beating the EU target by 7.6% in 2016. The overall aim for the industry is to achieve the right balance of economic progress, environmental care and social responsibility.
To keep up with governmental pressures, it is important to have the right manufacturing software implemented within your supply chain. The best ERP systems will be implemented by software partners invested in their systems with a product roadmap to ensure their products meet your future demands. How manufacturing software can help respond to change will be discussed further in part two.
CTA: Subscribe to our blog to make sure you don’t miss part two of this article which will discuss 3 ways In2grate can help manufacturers respond to these trends with the right ERP solution.