Asia Pacific manufacturers prioritise digital transformation; struggle with innovation pace

This is part of the findings of the 2024 Manufacturing Vision Study released on August 22 by Zebra Technologies Corporation, a digital solution provider that enables businesses to intelligently connect data, assets, and people.

The study showed that globally, 61 per cent of manufacturers expect AI to drive growth by 2029, up from 41 per cent in 2024. In Asia-Pacific, 68 per cent of manufacturers expect AI to drive growth by 2029, increasing from 46 per cent in 2024. This surge in AI adoption, combined with 92 per cent global and 87 per cent of Asia-Pacific survey respondents prioritising digital transformation, underscores manufacturers’ intent to improve data management and leverage new technologies that enhance visibility and quality throughout the manufacturing process.

Talking to VIR at a press briefing on August 22, Christanto Suryadarma, sales vice president for Southeast Asia, South Korea, and Channel APJeC at Zebra Technologies, said, “AI as a technology is growing rapidly and encompasses many different types. One of the key areas where Zebra is actively participating is in deep learning and machine learning. We are already providing AI solutions for manufacturing in Vietnam, such as machine vision. Machine vision is an AI solution, and some manufacturers, especially in the electronics sector, are already adopting AI in this format.”

He added, “Manufacturers struggle with using their data effectively, so they recognise they must adopt AI and other digital technology solutions to create an agile, efficient manufacturing environment.

According to Suryadarma, there has been increasing demand for digital transformation across various sectors, with a noticeable acceleration in requests and interest from Vietnamese customers, particularly in the manufacturing sector, to speed up their digital transformation.

Many have already started on a smaller scale but are now looking to scale further. For example, there has been an increase in requests for vehicle tracking solutions in manufacturing. When car manufacturers have a vehicle ready, they need to know where it will be stored or parked within the entire manufacturing site. This illustrates the growing demand for more advanced solutions.

Additionally, similar trends have been observed with one of the largest coffee producers in Vietnam. They have a vast warehouse and want to operate more efficiently. They are interested in advanced solutions that can make their workers more productive, such as voice-triggered instructions and digital devices for inventory retrieval.

However, although manufacturers say digital transformation is a strategic priority, achieving a fully connected factory remains elusive. Visibility is key to optimising efficiency, productivity, and quality on the plant floor, yet a large visibility gap exists. Only 16 per cent of manufacturing leaders globally report they have real-time, work-in-progress monitoring across the entire manufacturing process, while this is true for more of Asia-Pacific's manufacturing leaders, at 25 per cent.

Adding to these obstacles, 86 per cent of global manufacturing leaders agree they are struggling to keep up with the pace of technological innovation and to securely integrate devices, sensors, and technologies throughout their facilities and supply chains, with 82 per cent of Asia-Pacific manufacturing leaders in agreement. Enterprises can use Zebra solutions to put their data to work, allowing for higher levels of security and manageability, as new analytics elevate the performance of their businesses.

The study also found manufacturers are shifting their growth strategies by integrating and augmenting workers with AI and other technologies to transform manufacturing and build a skilled workforce over the next five years. Nearly three-quarters (73 per cent) of global manufacturing leaders plan to reskill labour to enhance data and technology usage skills, as seven in 10 expect to augment workers with mobility-enabling technology. These sentiments were shared by 76 per cent and 75 per cent of Asia-Pacific manufacturing leaders, respectively.

The technology tools being implemented by manufacturing leaders include tablets (51 per cent globally, 52 per cent in Asia-Pacific), mobile computers (55 per cent globally, 53 per cent in Asia-Pacific), and workforce management software (56 per cent globally, 62 per cent in Asia-Pacific). In addition, six in 10 manufacturing leaders (61 per cent globally, 65 per cent in Asia-Pacific) plan to leverage wearable mobile computers to augment their evolving workforce.

In Vietnam, the government has consistently set ambitious targets for the manufacturing sector. It is expected to contribute 30 per cent to the overall GDP. The sector’s contribution to GDP is expected to grow by more than 8.5 per cent per annum, while labour productivity is forecast to grow 7.5 per cent per annum.

To achieve these goals, Vietnamese businesses must embrace the need for reskilling and retraining their workforces to stay competitive. Adopting AI and other advanced technologies, such as Zebra’s Enterprise Mobile Computers (ET60, MC9400, and TC53e), data capture solutions (DS3600-XR, DS4678-XD, and DS55), and fixed industrial scanning and machine vision solutions, is crucial for enhancing productivity, improving quality, and streamlining operations.

Manufacturing leaders’ technology implementation plans will address these challenges. Over the next five years, many plan to implement robotics (65 per cent globally, 72 per cent in Asia-Pacific), machine vision (66 per cent globally and in Asia-Pacific), radio frequency identification (RFID) (66 per cent globally, 72 per cent in Asia-Pacific), and fixed industrial scanners (57 per cent globally, 62 per cent in Asia-Pacific).

Most manufacturing leaders agree these automation solutions are driven by a variety of factors including the need to provide the workforce with high-value tasks (70 per cent globally, 75 per cent in Asia-Pacific), achieve service-level agreements (69 per cent globally, 70 per cent in Asia-Pacific), and add more flexibility to the plant floor (64 per cent globally, 66 per cent in Asia-Pacific).

“Technological innovations, such as machine vision and deep learning OCR solutions, are opening doors for manufacturers to excel in an era marked by rapid technological advancement and growing requirements for speed, safety, and precision,” said Tan Aik Jin, Asia-Pacific solutions lead for manufacturing and Singapore ZEC at Zebra Technologies. “Beyond just adopting technology, businesses need to be prepared and equipped to continually transcend current capabilities. The future of manufacturing demands a symbiotic relationship between technology and human expertise to redefine the essence of manufacturing.”

Christanto Suryadarma, sales vice president for Southeast Asia, South Korea and Channel APJeC at Zebra Technologies, spoke with VIR's Bich Thuy about how to empower manufacturing businesses with real-time visibility and data-driven insights.

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Christanto Suryadarma, sales vice president for Southeast Asia (SEA), South Korea, and Channel APJeC, Zebra Technologies, explains the benefits of cloud-based deep learning in machine vision operations.