How should we navigate the new normal? Three key pillars of transformation for the machinery industry.

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2020-11-03

　　Recently, the Industrial Technology Research Institute (ITRI) highlighted its outlook on 2021 industry trends, noting that the machinery sector—hard hit by the pandemic—is expected to see a 10.5% decline in output value in 2020 compared with 2019. To adapt to the post‑pandemic new normal, ITRI also identified three key transformation priorities, emphasizing that the machinery industry must seize emerging business opportunities and accelerate its digital transformation.
　　In 2020, amid the dual pressures of the U.S.-China trade war and the COVID‑19 pandemic, many global manufacturers experienced severe disruptions on both the supply and demand sides. However, in the post‑pandemic era, the more pressing challenge is how to navigate the new normal that has emerged.
　　Xiong Zhimin, Manager of the Mechanical and Manufacturing Systems Research Department at the Industrial Technology Research Institute’s Industrial Economics and Knowledge Center, points out that Sino‑U.S. tensions persist in the post‑pandemic era, and this crisis has exposed the risks of over‑concentration of production capacity overseas and reliance on a single country. As a result, many multinational corporations are likely to accelerate the establishment of secondary production bases. Meanwhile, the pandemic has underscored the inherent fragility of the real‑time supply‑chain model—rooted in cost‑driven optimization—when confronted with large‑scale external shocks. Consequently, striking a balance between globalization and regionalized production, while continuously strengthening supply‑chain resilience, has become a critical challenge for the manufacturing sector in the post‑pandemic landscape.
　　In light of future development needs and the evolving operating environment, Xiong Zhimin recommends that the machinery industry precisely identify emerging business opportunities while accelerating corporate restructuring and enhancing competitiveness. He further emphasizes that companies should focus on three key areas: capitalizing on the demand for contactless, unmanned, remote, and decentralized production arising from the pandemic and regional manufacturing trends—such as remote monitoring, health diagnostics, and remote operational guidance for production equipment leveraging connectivity, cloud platforms, and AR/VR technologies—and deploying robotics and automation solutions across both manufacturing and service sectors.
　　Secondly, it involves developing or providing a range of machinery and production systems that help the manufacturing sector strengthen supply-chain resilience. Examples include 3D‑printing equipment, highly adaptable modular production systems, and customized manufacturing services that leverage digital twins to enable customers to rapidly deploy production lines.
　　Finally, it involves accelerating enterprises’ digital transformation by leveraging digital tools and platforms to enhance the digitization of value‑creating processes across design, manufacturing, sales, and service, thereby improving overall operational efficiency, reducing total operating costs, and developing new business models that meet customer needs and generate value.

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