95% of manufacturing executives recently reported that good design is critical for revenue growth.
By Justin Sirotin, Founder and CEO of OCTO
The manufacturing industry has a reputation for being conservative, preferring stability over change. Yet the combination of the pandemic and the resulting supply chain crisis forced many manufacturers to reinvent their approach, and they are increasingly turning to tightly integrated design and technology-led solutions.
Take remote monitoring, for instance. When the pandemic made it nearly impossible for workers to oversee machines on the facility floor, sensor-based monitoring became crucial. Today, that shift has led to more than three-in-five manufacturers (62%) embracing IoT technologies in their manufacturing or assembly processes. Even more telling, 76% of manufacturers now consider IoT critical for driving their digital initiatives and improving operational efficiency.
For companies offering technology solutions to manufacturers, the growing demand for cutting-edge innovations means that prioritizing design is no longer optional – it’s essential. Here’s why design has become a cornerstone of success for today’s manufacturing solutions.
My organization’s 2024 Economics of Design report reveals a paradigm shift in how manufacturers view design and user experience. 95% of manufacturing executives surveyed reported that good design is critical for revenue growth, and 74% are increasing their spending on design and innovation through year’s end.
This renewed focus on design and UX extends beyond the end product to the manufacturing process itself. In fact, a 2023 Deloitte survey found that 78% of manufacturers are investing in redesigning their operational interfaces to improve worker experience and productivity. This includes everything from intuitive machine controls to augmented reality-assisted maintenance procedures.
The impact of improved UX is tangible. Manufacturers report an average 18% increase in overall equipment effectiveness (OEE) when implementing user-centric designs in their production technologies. This translates to significant improvements in output and quality, underscoring the bottom-line impact of prioritizing design and usability.
We’re currently seeing a resurgence in U.S. manufacturing, which had been formerly decreasing due to offshoring and globalization. Not only are large companies bringing production back to the US, but even small and medium enterprises are considering the benefits of local production.
However, reshoring has costs beyond what is required to bring production home. In particular, remaining competitive within the constraints of the U.S. labor market is critical to onshoring. To compensate, American manufacturers will need to continue to increase their use of automation and other technologies to improve manufacturing productivity and efficiency.
Design plays a critical role in improving the user experience of automation and new technologies to ensure greater efficiency, ease of adoption, and seamless integration into existing workflows. To fully capitalize on this shift, organizations need to clearly understand the problem that needs to be solved. Starting with research, user journey mapping, and simple iterative prototypes provide visibility into the core challenges. Once those challenges are clearly understood, organizations can develop automation strategies powered by technology solutions that seamlessly bridge the digital and physical worlds that makeup today’s manufacturing environments.
Good design doesn’t just apply to products. In addition to improving usability, as we touched on above, it also increases efficiency, reduces user error, lowers training time and costs, and provides solutions that fit into a broader ecosystem.
One striking example is the redesign of industrial robots. Traditional industrial robots were often intimidating and difficult to program. However, companies like Universal Robots and Flexxbotics have reimagined how humans and machines interact. Their systems feature intuitive interfaces and safety features that allow them to work alongside humans, opening up new possibilities in manufacturing.
For example, implementing these technologies could involve using robotic systems for assembly or automated tools for managing inventory, just to name a few. These solutions not only boost productivity, output, and the quality of your products, but also reduce resource usage while minimizing the potential for human error.
Sustainability has become a core consideration in manufacturing design. The World Economic Forum reports that 68% of manufacturing companies now consider sustainability a top priority in their product design process, up from just 29% in 2019.
Manufacturers themselves play a critical role in supporting these initiatives. By focusing on efficiency gains through a streamlined use of both human resources and automation resources, manufacturers can point to legitimate improvements in CO2 consumption. Those gains are another mechanism for competing against low-cost labor competitors.
The enabling force behind all of this is the integration of design strategies into the existing technology ecosystem of manufacturing. By targeting gains across the spectrum of the manufacturing sector, companies can tackle the challenge of maintaining solid business practices while balancing sustainability goals.
In an era of smart manufacturing and Industry 4.0, integration and compatibility have become critical design considerations. A 2024 survey by the Industrial Internet Consortium found that 83% of manufacturers cite seamless integration as a top criterion when selecting new manufacturing technologies.
Companies like Rockwell Automation have responded to this need by designing their products with open architectures and standardized communication protocols. This approach allows their systems to integrate easily with a wide range of third-party equipment, providing manufacturers with the flexibility they need in today’s rapidly evolving technological landscape.
Designers’ ability to create user-centered workflows unlocks open architecture systems. Designs’ role in threading together a set of disparate components to provide a seamless integration can accelerate manufacturers’ goals to improve throughput without adding cost.
The future of manufacturing technology is inextricably linked to excellence in design. Success in this new era depends on developing innovative solutions, implementing sustainable practices, and ensuring seamless integration capabilities across systems. For technology providers serving the manufacturing sector, a design-centric approach has become non-negotiable—it is now fundamental to success in the market.
The data paints a clear picture: organizations that prioritize design consistently lead the way in innovation, efficiency, and profitability. As manufacturing continues its technological evolution, those who embrace designs’ ability to solve complex problems will define the industry’s future. In this new era, design transcends mere aesthetics to encompass functionality, manufacturability, and environmental impact, becoming a core driver of manufacturing excellence.
About the Author:
Justin Sirotin is an entrepreneur, design strategist, and innovation expert with over 25 years of experience creating successful products, services, and businesses for multinational brands and startups. He is the founder of two companies, including OCTO, an innovation services firm, and Route Werks, a cycling accessories brand. In addition, Justin has been a faculty member of The Rhode Island School of Design (RISD) since 2008, where he instructs design students on the process and technologies of manufacturing and supply chain. Justin has worked with top clients like Bose, Google, and Johnson & Johnson, applying a prescriptive methodology to drive business outcomes in competitive markets.
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Read more from the author:
Harnessing Health Technology and Precision Data to Transition to Proactive Healthcare | HIT Consultant, 11/4/2024
Spotlighting Equipment Manufacturing: Advocate for the People Who Build, Power, and Feed the World
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