Author: Keith Ooi
Thursday 29th July 2021 05:38 PM
Coronavirus Will Force Manufacturers to Enhance Digitization
Coronavirus aka Covid-19 which started in Wuhan China has initially spread within China. Then Korea and Japan were the most affected countries. By March it spread to Iran, Italy, Spain, Germany and many other European Countries. The USA also saw a huge increase of the covid-19 cases in March. In my country Malaysia, movement curbs are in place for 14 days then extended to 28 days as Coronavirus cases surged.
Coronavirus economic impact is severe. The International Monetary Fund said it expects a global recession this year that will be at least as bad as the downturn during the financial crisis more than a decade ago, followed by a recovery in 2021. Manufacturers have to enhance automation digitization for long-term operations in order to reduce the financial impact.
For manufacturers the short-term impact of the pandemic is a decline in revenue and profits. Many factory operations are suspended and loss of production capacity is expected. In addition, the production recovery cannot be achieved overnight because of insufficient raw materials, and other issues such as cash flow and logistics. SME and those with insufficient cash flow will feel the pressure most.
As such, it forces industries to undertake much needed reforms to automation, digitization and logistics systems. If the pandemic causes general moves to higher levels of digitization and automation such as IR4.0, this will further the long-term goal. Tronserve is one of the platforms which will help to push this to reality.
Coronavirus has brought unexpected challenges to governments, industries and enterprises all over the world. It will eventually pass and this is a chance for industries to make the much needed operational improvements with IR4.0 and digitization.