Volvo Cars has officially started production of its new fully electric EX60 SUV, marking a major manufacturing milestone for both the company and Sweden’s automotive sector.

A Significant Step in Volvo Cars’ Electrification Strategy

Customer deliveries of the new mid-size electric SUV will begin in early summer, with the EX60 being produced at Volvo Cars’ Torslanda manufacturing plant just outside Gothenburg, Sweden.

As the first fully electric car to be designed, developed and built in Sweden, the EX60 represents a significant step in Volvo Cars’ electrification strategy and reinforces the company’s long-term commitment to Sweden as a centre for premium electric vehicle development and manufacturing.

The model is also expected to become one of Sweden’s largest export products by value, supporting both regional economic growth and Western Sweden’s position as a major automotive manufacturing hub.

“Today is an important milestone for our company and for Sweden as a whole, as we start to build the first EX60 customer cars,” said Håkan Samuelsson, CEO of Volvo Cars.

“We are now focused on a steady ramp-up of high-quality EX60 production, making sure this game-changing car will be a profitable growth driver in the coming years.”

Strong Demand Drives Higher Production Volumes

Last month, Volvo Cars announced it would increase EX60 production volumes for 2026 following stronger-than-expected customer demand across Europe.

The company said strong initial demand in key markets such as Sweden and Germany, alongside retail orders that exceeded internal forecasts in nearly all major European markets, prompted the decision.

Following the strong European order intake—and with order books for the U.S. and Asian markets opening later this spring—Volvo Cars is now aiming to keep the Torslanda plant open for one extra week this summer, which would be the first time in the plant’s history.

The EX60, first revealed in January, offers a range of up to 810km, charging from 10–80% in 16 minutes, and is priced in line with Volvo’s best-selling XC60 plug-in hybrid.

The SEK 10 Billion Factory Transformation

Behind the EX60 launch sits a major manufacturing transformation.

Volvo Cars has heavily upgraded the Torslanda site in recent years as part of an investment of around SEK 10 billion (approximately $1 billion), preparing the plant for production of the EX60 and future next-generation electric vehicles.

The investment includes the introduction of mega casting capabilities, a new battery assembly plant, and a fully refurbished paint shop and final assembly operations.

These upgrades are designed to support higher efficiency, lower costs, and more sustainable production.

Why Mega Casting Matters

A major part of the investment is the introduction of mega casting of aluminium body parts—one of the most significant manufacturing changes in the plant’s history.

Casting major sections of the vehicle floor as a single aluminium part reduces weight, improves energy efficiency, and extends electric driving range. It also enables better use of interior cabin and luggage space.

Mega casting also reduces manufacturing complexity, creating cost savings across material use and logistics while lowering the overall environmental footprint across manufacturing and supply chain operations.

The battery assembly plant integrates battery cells and modules directly into the floor structure of the vehicle, while upgrades to the assembly shop include a new “marriage point” where the top body and floor of the vehicle meet for the first time.

The paint shop has also been modernised with new machinery and processes designed to reduce energy consumption and emissions.

A Long-Term Electric Manufacturing Strategy

The original Torslanda investment plan was first announced in 2022 as part of Volvo Cars’ wider ambition to become a fully electric car company by 2030.

At the time, the company said the plant would play a crucial role in its transformation, supported by additional investments in battery development and manufacturing through its partnership with Northvolt.

The site’s logistics areas were also upgraded to improve material flow and optimise the transport of parts and goods, while employee facilities such as break areas, locker rooms and offices were improved to support working conditions.

Torslanda remains Volvo Cars’ largest manufacturing plant, with annual production capacity of 300,000 vehicles, around 6,500 employees, and operations running across three shifts.

With EX60 production now underway, the billion-dollar investment is moving from strategy to execution—placing Torslanda at the centre of Volvo Cars’ next generation of electric manufacturing.

The post The Billion Dollar Manufacturing Investment Behind Volvo’s New Fully Electric EX60 appeared first on Manufacturing Outlook.

Marking Earth Day 2026, Electrolux Group unveils an updated sustainability framework, sharpening its focus on circularity, innovation, and partnerships to drive long-term environmental and social impact.

SUSTAINABILITY FOR THE BETTER

On Earth Day 2026, Electrolux Group has reaffirmed its commitment to environmental and social progress with the relaunch of its ‘For the Better’ sustainability framework, aligning it more closely with its evolving business strategy.

The updated framework places sustainability firmly at the core of the organisation’s operations, with an intensified emphasis on circularity, durability, and connected home ecosystems, alongside strengthened partnerships to accelerate impact.

REFINING A SUSTAINABLE FOUNDATION

Originally launched in 2016, the For the Better framework continues to centre on three pillars – Better Company, Better Solutions, and Better Living – each now refined to support the Group’s strategic ambitions.

Better Company remains the foundation, focusing on climate-responsible and resource-efficient operations, alongside ethical practices across the value chain. This includes ongoing efforts to reduce both operational emissions and those generated by suppliers.

Meanwhile, the Better Solutions and Better Living pillars have evolved to better position the business in an increasingly sustainability-driven marketplace.

ACCELERATING CIRCULAR INNOVATION

Under the updated framework, Better Solutions now prioritises appliance performance through enhanced energy efficiency, smart functionalities, and increased use of recycled materials.

Circularity also takes centre stage, with a focus on durability and reparability, as well as deeper, lifetime engagement with consumers through connected home ecosystems.

This approach aims to extend product lifecycles whilst fostering stronger relationships between consumers and the brand.

EMPOWERING SUSTAINABLE LIVING

The Better Living pillar sharpens its focus on encouraging healthier and more sustainable everyday habits among consumers.

In addition, community engagement and partnerships have been elevated as key components of the Group’s sustainability agenda, reflecting a broader ambition to contribute positively to society.

TRACKING MEANINGFUL PROGRESS

Electrolux Group has already demonstrated significant progress against its sustainability targets. Notably, it achieved its 2025 science-based targets three years ahead of schedule, in 2022.

New goals, established in 2023, include reducing Scope 1 and 2 emissions by 85 percent, and Scope 3 emissions by 42 percent between 2021 and 2030. The long-term ambition remains achieving net zero emissions across the entire value chain by 2050, in line with the Paris Agreement.

By 2025, the Group had reduced emissions from its own operations by 45 percent, and product-related emissions by 33 percent compared to 2021 levels.

Progress extends beyond emissions. Recycled steel and plastic accounted for 23 percent of materials used in self-manufactured products in 2025, moving towards a 35 percent target by 2030. Additionally, over 99 percent of waste generated at manufacturing sites was recycled or recovered.

DRIVING GLOBAL IMPACT

As part of its Earth Day 2026 initiatives, the Group, alongside the Electrolux Food Foundation, has launched a new programme supporting the UN World Food Programme’s #ShareTheMeal Challenge, aimed at combating global hunger.

Through the relaunch of its For the Better framework, Electrolux Group is not only reinforcing its sustainability leadership but also setting a clear direction for integrating circularity, innovation, and social responsibility into the future of its business.

The post Electrolux Group Relaunches Sustainability Vision appeared first on Manufacturing Outlook.

GE Appliances is deploying AI at scale across its manufacturing and supply chain operations, using Google Cloud’s Gemini Enterprise to drive faster decision-making, improve product quality, and increase operational efficiency.

Democratizing AI on the Factory Floor

Announced at Cloud Next ’26, the initiative has already seen the company roll out more than 800 AI agents across manufacturing, logistics, and supply chain functions—marking a significant step toward what it describes as the future of AI-enabled industrial operations.

A key focus of the strategy is putting AI tools directly into the hands of frontline workers.

“AI is now integral to the way work gets done at GE Appliances,” said Mandar Deo, Vice President of Digital Technology & Chief Digital Officer. “With hundreds of AI agents already in use across manufacturing and operations, our Digital Technology team is accelerating this AI transformation with Gemini Enterprise to build the secure, connected data foundations necessary to lead the industry in the AI era.”

The company is leveraging both the Gemini Enterprise Agent Platform and app—enabling technical teams to build and govern AI agents, while allowing non-technical employees to create low-code or no-code solutions to solve operational challenges.

AI-Powered “Brilliant Factory” Drives Real-Time Manufacturing Decisions

GE Appliances has embedded Gemini Enterprise into its Brilliant Factory platform, which tracks production performance, part genealogy, and workforce activity across plants.

This integration is shifting operations from reactive problem-solving to real-time, data-driven decision-making.

Key manufacturing gains include:

• Faster shift analysis: AI agents process shift data in minutes instead of hours, accelerating root-cause identification
• Natural language data access: Workers can interact with production data conversationally, reducing reliance on data specialists
• Real-time optimization: Continuous monitoring of line yields and equipment health helps reduce downtime and improve performance

Supply Chain and Logistics: From Manual to AI-Assisted Operations

Beyond the factory floor, AI is delivering measurable impact across logistics and supply chain operations.

GE Appliances developed a Quality Insights AI tool to analyze customer feedback and improve product design and logistics processes.

“We used Gemini Enterprise to create and deploy Quality Insights Assistant to help our teams identify visual patterns faster from customer feedback,” said Marcia Brey, Vice President of Logistics. “At our scale, that means we can catch defects sooner and improve product quality, ultimately delivering a better consumer experience.”

The company reports that shifting from manual reviews to AI-assisted analysis has uncovered millions of dollars in improvement opportunities across logistics and internal operations.

Managing Complex Global Supply Networks with AI Agents

GE Appliances’ supply chain spans more than 700 service parts suppliers and includes the shipment of approximately 27 million parts annually, with availability maintained for at least seven years after production ends.

To manage this complexity, the company introduced a Supplier Collaboration Agent in 2025 to automate communication with more than 600 suppliers.

The result:

• 25% reduction in backorders
• Improved efficiency in order status management
• Greater focus on strategic, high-value activities

A Model for the Agentic Enterprise

Matt Renner, President and Chief Revenue Officer at Google Cloud, highlighted the broader implications of the deployment:

“GE Appliances serves as a model for the agentic enterprise, demonstrating how Gemini Enterprise can be deployed at scale to solve complex, real-world industrial challenges. By building AI agents into their manufacturing processes, they are combining their deep industry experience with modern AI to make faster, better decisions.”

Scaling AI Across Industrial Operations

With more than a century of manufacturing experience, GE Appliances is now embedding AI across its workforce and operations—reshaping how products are built, how supply chains are managed, and how decisions are made at scale.

By combining industrial expertise with AI-driven automation, the company is positioning itself at the forefront of a new era in manufacturing and supply chain transformation—where data, speed, and intelligence define competitive advantage.

The post How GE Appliances Is Scaling AI Across Manufacturing and Supply Chains with Google Cloud appeared first on Manufacturing Outlook.

Powering the shift from pilot to production, Lenovo’s AI solutions are delivering unprecedented measurable gains in cost, quality, and operational performance for its users.

DELIVERING SMARTER TECHNOLOGY FOR ALL

“Manufacturers don’t need more artificial intelligence (AI) pilots. They need AI that runs at scale in production,” states Jonathan Wu, Chief Technology Officer of Smart Manufacturing at Lenovo.

At Lenovo – a global powerhouse determined to deliver smarter technology for all – this initiative has already been accomplished across its own international manufacturing operations, resulting in significant improvements in lead time, cost, and productivity. Specifically, at the company’s largest site in North America, lead time was reduced by 85 percent, logistics costs by 42 percent, and productivity was boosted by 58 percent through the deployment of AI and generative AI-enabled solutions.

“That experience is what we bring to our customers,” Wu states.

With approximately 94 percent of manufacturers increasing AI investments in 2026 alone, Lenovo is enabling the seamless transition from pilot to production with solutions that are already delivering measurable gains in cost, quality, and operational performance, shifting the priority from experimentation to execution.

DELIVERING MEASURABLE IMPROVEMENTS

It is evident that AI is no longer just a future ambition for manufacturers; rather, it has become an operational necessity, with many feeling the pressure to improve efficiency, resilience, and responsiveness in response to continuous supply chain volatility and rising operational complexity.

In partnership with NVIDIA at Hannover Messe 2026, Lenovo is actively demonstrating how manufacturers have the ability to close said gap by implementing AI solutions that have previously been proven at scale across the company’s own global operations.

Through the application of AI across production environments allowing for real-time detection, faster root cause analysis, and continuous improvement, Lenovo is working to strengthen supply chain resilience with immediate, multi-tier visibility.

Such solutions can be directly observed on the factory floor through the company’s Multi Purpose Robots, which create adaptive automation across workflows, including line-side delivery, picking, kitting, and material movement between production stages. This enables better production stability, increased equipment effectiveness, and better alignment between operations and changing demands.

PROVEN END-TO-END EXECUTION

Whilst many AI initiatives fall flat ahead of production, Lenovo ensures that these tools are designed to operate in live, complex environments by delivering solutions that are already running at scale in its own varied manufacturing operations.

The company’s proven experience enables faster deployment, reduced execution risk, and measurable business impact from the very start.

Specifically, Lenovo’s Hybrid AI Advantage merges infrastructure, data, models, and services into a single, integrated ecosystem that spans edge, cloud, and on-premises. Crucially, it is designed for real-world conditions, encouraging manufacturers to move from pilot to production with greater speed, confidence, and control.

Ultimately, as a global technology leader, the company is pioneering the use of its groundbreaking AI technology to enhance its own operations, allowing Lenovo to help other enterprises transform and embrace smarter AI for all.

The post Lenovo Provides Manufacturers with Production-Scale AI Solutions appeared first on Manufacturing Outlook.

A new partnership between Dassault Systèmes and OMRON Corporation is targeting one of manufacturing’s most persistent challenges: the disconnect between digital design and shopfloor execution.

IT/OT convergence and virtual twin technology

The two companies announced a collaboration to integrate virtual twin technology with industrial automation, enabling manufacturers to design, simulate, and operate production systems through a unified digital and physical environment.

The partnership addresses a common issue across industrial environments, where “product design, automation, and production systems operate in silos,” leading to “longer commissioning times, higher error risks, and limited flexibility.”

By linking 3D design and simulation with real-world equipment such as robots and sensors, the companies aim to replace fragmented systems with a more connected, software-defined manufacturing model.

Virtual twins enable pre-validation and continuous optimization

At the core of the collaboration is the integration of Dassault Systèmes’ 3D UNIV+RSES platform with OMRON’s Sysmac automation platform.

This enables the creation of a “Virtual Twin of Production Systems,” allowing manufacturers to “test a new production line, validate robot behavior, or optimize logistics flows—prior to building anything physically.”

The approach extends beyond initial deployment. Once production lines are operational, real-time data from sensors and controllers feeds back into the virtual environment, enabling comparison between simulated and actual performance, as well as predictive maintenance and ongoing optimization.

From automation to autonomy

For Dassault Systèmes, the partnership reflects a broader shift toward intelligent, adaptive manufacturing systems.

“Manufacturing is entering a new era. With OMRON, we are building living production systems, AI-driven, self-improving, and software-defined, where the virtual and physical worlds are fused into one continuous loop of learning,” said Pascal Daloz.

“Our industry world models transform complexity into intelligence, making factories not just automated, but autonomous. This is how we reinvent industrial systems, from reactive to predictive, from rigid to adaptive and define the next frontier of manufacturing.”

Delivering a unified IT/OT manufacturing model

For OMRON Corporation, the collaboration strengthens its ability to deliver integrated solutions spanning both operational and information technologies.

“Our partnership with Dassault Systèmes strengthens our ability to integrate the OT and IT worlds and provide customers with a holistic solution from simulated to fully implemented, intelligent production,” said Motohiro Yamanishi.

Toward a continuous digital manufacturing loop

By converging IT and OT systems into a continuous digital loop, the partnership is positioned to help manufacturers reduce errors, lower costs, and improve flexibility across increasingly complex production environments.

The combined platform enables a lifecycle approach—from simulation and validation to real-time optimization—marking a shift toward fully connected, AI-driven manufacturing systems.

The post “Manufacturing is Entering a New Era”: Pascal Daloz Dassault Systèmes CEO on OMRON Partnership appeared first on Manufacturing Outlook.

Siemens’ strategic partnership with NVIDIA to deliver artificial intelligence-driven manufacturing sites has reached a watershed moment with the testing of Humanoid robots at a Siemens factory in Germany.

ADVANCING THE PRESENCE OF PHYSICAL AI 

Siemens and Humanoid have reached a significant milestone in bringing physical artificial intelligence (AI) into real industrial environments, following the successful testing of a humanoid robot at Siemens’ electronics factory in Erlangen, Germany. 

The collaboration builds on Siemens’ strategic partnership with NVIDIA, which aims to develop fully AI-driven, adaptive manufacturing sites.  

At the centre of this development is the HMND 01 Alpha, a wheeled humanoid robot designed specifically for industrial use. Built using NVIDIA’s physical AI stack, the robot has been deployed in logistics operations, where it autonomously carried out tote-handling tasks such as picking, transporting, and placing containers.  

During testing, the robot achieved key performance targets, including a throughput of 60 tote moves per hour, uptime exceeding eight hours, and autonomous pick-and-place success rates above 90 percent. 

Physical AI refers to systems that can perceive, reason, and act in real-world environments. Applying this capability to manufacturing requires a combination of advanced computing and simulation, robotics platforms, and industrial automation infrastructure working together as a cohesive ecosystem. 

INTEGRATION THROUGH SIEMENS XCELERATOR  

Physical AI refers to systems that can perceive, reason, and act in real-world environments. Applying this capability to manufacturing requires a combination of advanced computing and simulation, robotics platforms, and industrial automation infrastructure working together as a cohesive ecosystem. 

A key factor in enabling humanoid robots on the shop floor is their integration into existing production systems. This includes real-time data exchange, coordination with machinery and other automated systems, and the ability to adapt dynamically to changing conditions.  

Siemens supports this integration through its Siemens Xcelerator portfolio, which includes technologies such as digital twins, AI-enabled perception, control systems, PLC-robot interfaces, fleet management, and industrial communication networks.  

Together, these form the digital and automation infrastructure required for scalable deployment in industrial settings. 

ACCELERATING DEVELOPMENT WITH NVIDIA 

Humanoid has incorporated NVIDIA’s full physical AI stack into the HMND 01 platform, including Jetson Thor for edge computing, Isaac Sim for simulation, and Isaac Lab for reinforcement learning and training.  

This approach has significantly reduced development timelines. By using a simulation-first design, the team was able to optimise components such as actuators and joint structures virtually, reducing prototype development time from 18 to 24 months to just seven months. 

“Factories of the future demand robots that can perceive, reason, and adapt autonomously alongside human workers, tackling the labour shortages and operational complexity that traditional automation struggled to handle,” comments Deepu Talla, Vice President of Robotics and Edge AI at NVIDIA.  

“With Siemens providing the industrial integration backbone and Humanoid deploying NVIDIA’s full physical AI stack – from simulation-first training to real-time edge inference – this deployment paves the way for humanoid robots meeting real production targets on a live factory floor.” 

A HUMANOID BUILT FOR INDUSTRIAL ENVIRONMENTS 

Humanoid, a UK-based robotics company, developed the HMND 01 Alpha as a robot specifically designed for industrial applications. Combining omnidirectional wheeled mobility with advanced manipulation capabilities and powered by its proprietary KinetIQ AI framework, the robot is intended to operate in human-centric environments and perform a range of complex tasks. 

 “Our mission is to create humanoid robots that perform not only in controlled lab settings, but also in real-world factory environments, handling meaningful industrial tasks. Our collaboration with Siemens and NVIDIA gives us a powerful advantage by combining NVIDIA’s leading AI infrastructure, simulation tools, and frameworks with Siemens’ deep industrial expertise and integration capabilities,” insights Artem Sokolov, CEO and Founder of Humanoid.  

“Together, we’ve proven that humanoid robots are ready for real-world industrial deployment.”

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Stellantis deepens its collaboration with Microsoft to scale AI innovation, strengthen cybersecurity, and modernise its digital ecosystem, delivering smarter, safer, and more connected experiences for customers worldwide.

A POWERFUL FRAMEWORK

A new chapter in automotive innovation is unfolding as Stellantis strengthens its strategic collaboration with Microsoft, accelerating a sweeping AI-led transformation across its global operations. Announced on April 16, 2026, the five-year partnership signals a decisive push towards a more agile, data-driven, and digitally interconnected future.

Building on a longstanding alliance, the two companies are combining Stellantis’ engineering expertise and multibrand scale with Microsoft’s advanced cloud, AI, and security capabilities. The result is a powerful framework designed to embed intelligence across every layer of the automotive value chain, from design and manufacturing to customer interaction.

AI AT SCALE

Central to the collaboration is the co-development of more than 100 AI initiatives spanning sales, customer care, product development, and operational processes. These initiatives are designed to unlock faster, smarter innovation through advanced analytics and secure data insights.

Key focus areas include AI-powered product development and validation, predictive maintenance and testing, and the rapid deployment of new digital features and services. Together, these capabilities are reshaping how vehicles are designed, built, and experienced.

For customers, this translates into tangible benefits. Drivers can expect intelligent, real-time insights that enhance efficiency and usability, such as personalised recommendations for energy-efficient driving or proactive vehicle health updates. By placing AI at the heart of its ecosystem, Stellantis is reinforcing its commitment to customer-centric innovation.

CYBERSECURITY REINVENTED

As vehicles and services become increasingly connected, cybersecurity has emerged as a critical priority. Stellantis is addressing this challenge head-on through the deployment of an AI-driven global cyberdefense centre.

This unified platform spans IT systems, connected vehicles, manufacturing sites, and digital services, enabling faster threat detection, consistent protection of customer data, and enhanced resilience across operations. AI-driven analytics will allow Stellantis to anticipate and respond to cyberthreats with unprecedented speed and precision.

Importantly, cybersecurity is being embedded directly into the digital vehicle experience. From mobile applications to in-vehicle systems, customers will benefit from secure, reliable connectivity wherever they travel, ensuring confidence in an increasingly digital driving environment.

CLOUD-POWERED TRANSFORMATION

Underpinning these advancements is a major cloud modernisation programme powered by Microsoft Azure. Stellantis is targeting a 60 percent reduction in its datacentre footprint by 2029, a move that will significantly enhance agility, scalability, and performance.

This transition is enabling a more interconnected digital ecosystem capable of supporting seamless global delivery of connected services. At the same time, it strengthens operational resilience across manufacturing and logistics, ensuring the company can respond quickly to evolving market demands.

EMPOWERING THE WORKFORCE

Beyond technology, the collaboration is also transforming how Stellantis employees work. The company is equipping its global workforce with enterprise-grade AI tools, including widespread access to Copilot Chat and the rollout of 20,000 Microsoft 365 Copilot licences.

Supported by a dedicated training programme, these tools are enhancing productivity, streamlining collaboration, and enabling teams to integrate AI into their daily workflows. This people-centric approach ensures that innovation is not only driven by technology, but also by the individuals using it.

A SHARED VISION FOR THE FUTURE

As the partnership evolves, Stellantis and Microsoft will continue to work closely alongside certified partners to accelerate priority programmes and unlock new opportunities across engineering, manufacturing, and supply chain operations.

With AI, cybersecurity, and cloud innovation converging at scale, Stellantis is positioning itself at the forefront of the automotive industry’s digital evolution. Through its collaboration with Microsoft, the company is not only redefining mobility, but also shaping the future of connected, intelligent transportation.

The post Stellantis and Microsoft Drive Next Wave of AI-Powered Automotive Transformation appeared first on Manufacturing Outlook.

Accenture and Avanade, in collaboration with Microsoft, have introduced a new “agentic factory” intelligence system designed to help manufacturers reduce downtime and improve shop floor performance through AI-driven operations.

AI agents target downtime and operational inefficiencies

The solution is aimed squarely at manufacturing environments where unplanned downtime, inefficiencies and fragmented data remain persistent challenges. Early adopters, including Kruger Inc. and Nissha Metallizing Solutions, are already testing the system ahead of its planned general availability later in 2026.

The agentic factory moves beyond traditional dashboards and analytics tools by deploying AI agents that actively support frontline workers. These agents assist with initial status checks, diagnostics and guided troubleshooting when production lines or machines are not producing at the intended rate.

By analysing operational context, historical machine behaviour and production data, the system identifies likely root causes and recommends corrective actions. It can also prepare maintenance tickets or initiate spare parts orders when escalation is required.

“Manufacturers are looking to reinvent their shop floor operations with AI for improved safety and productivity,” said Tracey Countryman, Global Supply Chain and Engineering lead at Accenture. “This includes moving beyond visibility toward systems that support frontline workers in critical moments. Our agentic factory helps production supervisors, machine operators, electricians, mechanics and quality controllers resolve issues faster and with greater confidence, remaining in control of final decisions.”

Data integration and real-time decision support

The system aggregates both structured and unstructured data sources, including manufacturing execution systems, sensor telemetry, maintenance records and operator manuals. Built on Microsoft technologies such as Azure, Fabric, Foundry and Copilot, it delivers “contextual, role-specific guidance directly at the point of work through conversational interfaces.”

Michael Schleuss, Global Supply Chain and Engineering lead for Avanade, emphasised the practical application of the technology: “What makes agentic AI real for manufacturers is how it shows up for the people running the factory every day. Our agentic factory combines Microsoft technology expertise with hands-on industry and manufacturing know-how to help clients and their teams move quickly from concept to measurable impact on the shop floor.”

Early adopters highlight measurable impact potential

Initial deployments are focused on validating performance and quantifying business impact. At Kruger, the focus is on reducing downtime and improving maintenance efficiency.

“Unplanned downtime impacts safety, productivity and performance across our operations,” said Eric Ashby, Chief Operating Officer at Kruger. “The financial and operational value lever is significant. A 10–15% reduction in mean-time-to-repair quickly translates into multimillion dollar savings when scaled across production lines and sites. With this agentic factory, we can help our teams respond faster to issues, capture operational knowledge, and continuously improve how our factories run.”

At Nissha Metallizing Solutions, the emphasis is on improving quality and reducing waste. Edoardo Palmo, Global Operations Manager, said: “At NMS, we see prescriptive analytics and AI as a strategic imperative, helping unlock significant value across our organization. With Accenture’s and Avanade’s agentic factory, we can improve root cause exploration in order to significantly reduce scrap and unplanned downtime for a competitive edge in an increasingly dynamic market.”

Industry push toward AI-enabled factory operations

The collaboration reflects a broader industry shift toward integrating AI, automation and human expertise on the shop floor.

“Agentic AI is the next step for manufacturers like Kruger and Nissha Metallizing Solutions to turn data into outcomes,” said Dayan Rodriguez, Corporate Vice President, Manufacturing and Mobility Industry at Microsoft. “By bringing together Microsoft’s AI, Accenture and Avanade’s manufacturing expertise, and client validation, we’re building factory agents and analytics that help teams work smarter and make better decisions.”

The  agentic factory is designed to enable closer collaboration between people, machines and data, helping manufacturers “improve safety, increase productivity, strengthen decision-making, and enable more consistent performance across sites.”

* Accenture, Avanade and Microsoft are presenting the agentic factory at Hannover Messe at the Accenture booth (Hall 16, Stand A15) and the Microsoft booth (Hall 17, Stand G06).

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GE Appliances has announced a $28 million investment in its refrigeration manufacturing facility in Decatur, Alabama, focused on automation upgrades and workforce infrastructure, including a new on-site healthcare clinic.

Production capacity and workforce support

The investment forms part of the company’s previously announced $3 billion plan to expand U.S. manufacturing over the next five years, reinforcing its strategy to design, engineer and build advanced products in the United States.

The Decatur site is the largest refrigeration manufacturing operation in the U.S. and the highest-volume refrigeration plant in the country, producing 16–22 cubic ft. refrigerators.

Automation upgrades expand capacity and efficiency

A significant portion of the investment has been directed toward highly automated thermoforming machines, used to produce interior liners for fresh food and freezer sections of top-freezer refrigerators.

The new technology improves efficiency and expands production capacity across multiple models, supporting the plant’s three-shift operation.

Additional facility upgrades include new lighting and 21 new commercial air-conditioning units, aimed at improving the employee work environment.

Manufacturing footprint expansion supports U.S. production strategy

The investment reflects its broader effort to expand its manufacturing footprint and increase investment in American communities.

The company has operated in Decatur since 1977 and said the site is nationally recognised for manufacturing excellence, producing refrigerators that rank #1 in quality and dependability.

Rocki Rockingham, Chief Human Resources Officer at GE Appliances, said:

“Investing in advanced manufacturing and employee health is a winning combination that strengthens our business.”

“At GE Appliances, we are creating appliances our consumers love in an environment where our employees can do their best work and build lasting careers.”

GE Appliances contributes more than $2.1 billion annually to Alabama’s GDP, directly employs 1,600 people in the state, and supports thousands of additional jobs through its broader operations and supply chain.

On-site healthcare model integrated into manufacturing operations

Alongside production investments, GE Appliances has opened a new on-site primary care clinic at the Decatur facility, available to employees and covered family members aged two and older.

The clinic is the company’s fourth onsite advanced primary care facility across its manufacturing network and is operated by CareATC.

The company said its existing on-site clinics have delivered measurable outcomes over the past two years, including:

• 21.5% increase in primary care visits
• 28% rise in overall visits
• 12.3% reduction in avoidable emergency room visits among employees using the clinics
• Workforce-focused model supports productivity and retention

GE Appliances has also expanded its “On the Clock Care” programme, which allows employees to attend medical appointments during working hours.

Originally launched in 2023, the programme was extended in 2024 to include mental health services and chronic condition care, including diabetes, hypertension, high cholesterol and asthma.

Michele Clark, Senior Health Services Manager at GE Appliances, said:

“At GE Appliances, investing in the health of our people is investing in the success of our business.”

“This new clinic gives employees access high-quality primary care that fits into their everyday lives.”

The post Built for America : GE Appliances Invests $28M in Automation and Workforce Infrastructure appeared first on Manufacturing Outlook.

ABB is investing approximately $75 million in India during 2026 to expand manufacturing and research and development capacity as the technology group scales production for electrification, automation and industrial infrastructure markets.

Manufacturing expansion targets critical growth sectors

The investment will support manufacturing and R&D expansion across five Indian locations and is expected to create more than 300 skilled jobs in engineering, operations and research.

ABB said the move builds on more than $35 million invested in India in 2025 and forms part of its wider “local-for-local” strategy, with approximately 85% of ABB’s products and solutions sold in India manufactured locally.

The investment will support growth across its Electrification, Motion and Automation businesses, targeting sectors including renewable energy, metro rail, high-speed rail, data centers and critical infrastructure.

“This investment in India is an important part of our strategy to support infrastructure build-out and growth in one of our fastest growing markets,” said Morten Wierod, ABB’s Chief Executive Officer.

“We are seeing strong demand driven by the country’s energy transition, grid modernization, data center development, and the rapid expansion of the metro and high-speed rail segments. Our expanded facilities will ensure we meet this demand while enhancing our capabilities to serve other markets in the region.”

Capacity increases planned across multiple manufacturing hubs

ABB’s investment programme includes significant expansion across several of its Indian production and engineering sites.

In Bengaluru, ABB is investing $14 million into its two Nelamangala campus facilities, where it plans to expand converter manufacturing and introduce new electrical protection and enclosure technologies. The company said the converter expansion will support India’s growing sustainable mobility sector, with ABB planning to expand its portfolio for high-speed rail and metro transportation over the next three to five years.

At Nelamangala Campus 2, ABB will scale production of uninterruptable power supply solutions tenfold, alongside dedicated R&D and expanded manufacturing for rectifiers, excitation and blending systems, and gas analyzer systems.

ABB is also investing $21 million into its Peenya operations to expand manufacturing for low-voltage drives and specialised motors, including flameproof motors, roller-table motors and smoke-venting motors. The site will also gain an innovation lab, remote monitoring and diagnostics capabilities, and upgraded training facilities.

In Nashik, ABB is investing $22 million to expand production of indoor and outdoor circuit breakers and enlarge its Vacuum Interrupter factory, while supporting localisation of 33kV Primary Gas Insulated Switchgear and SF6-free technologies by 2028.

ABB will also invest $6 million in Vadodara to expand manufacturing for slow-speed synchronous generators and induction motors, serving industries including metals, oil and gas, cement and wind.

R&D expansion strengthens local engineering capabilities

Alongside manufacturing, ABB is increasing its R&D footprint with a multi-phase laboratory and office expansion in Hyderabad.

It will invest $12 million in 2026 in the first phase of the Hyderabad expansion, including relocation to a 12,400+ sqm office and lab facility. A second phase will add a state-of-the-art High Power lab on ABB-owned land later in 2026.

India remains strategic manufacturing hub for ABB

ABB said it has invested more than $230 million in India over the past decade, reflecting the country’s growing importance within its global manufacturing footprint.

The company generated more than $1.5 billion in revenue in India in 2025, accounting for approximately 4% of ABB Group total revenue.

ABB currently employs more than 10,000 people in India and operates nearly 25 manufacturing, distribution and operating facilities, alongside five major R&D centres.

The post ABB Invests $75 Million in India to Expand Manufacturing and R&D Capacity appeared first on Manufacturing Outlook.

Mars Canada strengthens its long-term commitment to growth with a $180 million investment in Ontario, enhancing manufacturing capacity, sustainability performance, and workplace innovation across its diverse portfolio.

INVESTING IN CANADA’S INDUSTRIAL FUTURE

Mars Canada has completed a $180 million (CAD) investment program to modernize manufacturing, accelerate innovation, and strengthen operational resilience across its four Ontario-based facilities.

Spanning 2022 to 2026, the initiative reinforces the company’s enduring presence in Canada, where it has operated for more than a century.

It also brings Mars’ total investment in the country to nearly $400 million since 2015, underlining a sustained commitment to local industry, communities, and economic growth.

Distributed across its Snacking, Pet Nutrition, Food and Nutrition, and Royal Canin divisions, the investment focuses on upgrading infrastructure, improving sustainability performance, and futureproofing production capabilities in line with evolving consumer demand.

TRANSFORMING OPERATIONS AT SCALE

At the heart of the program is a major push towards packaging and production transformation. More than $100 million has been allocated to three large-scale packaging line upgrades designed to enhance efficiency, increase reliability, and unlock new product formats.

These upgrades are not only boosting throughput but also enabling Mars to respond more dynamically to shifting market preferences while maintaining the consistency and quality associated with its globally recognized brands.

Alongside production enhancements, Mars has introduced best-in-class safety systems and operational improvements across all sites, ensuring that workplace modernization remains central to its long-term strategy.

SITE-SPECIFIC IMPACT, NATIONWIDE VALUE

The investment delivers targeted benefits across Mars Canada’s Ontario footprint, with each facility playing a distinct role in driving performance and sustainability gains.

• Bolton – Mars Pet Nutrition: An $86 million investment has increased production capacity for TEMPTATIONS™ products by 50 percent, while reducing water usage by 15 percent and cutting gas and hydro consumption by 13 percent. The site also marks its 40th anniversary, highlighting decades of innovation and community impact.
• Newmarket – Mars Snacking: A $40 million upgrade to packaging lines has driven a 25 percent increase in production capacity. At the same time, electricity usage has been reduced by 40 percent and compressed air consumption by 75 percent, resulting in annual energy savings of approximately 440,487 kilowatt-hours.
• Bolton – Mars Food & Nutrition: With a $17 million investment, the facility has enhanced production lines for brands such as Ben’s Original™, increasing capacity by 8 percent and reducing daily energy usage. The site celebrates its 25th anniversary this year, reflecting a strong legacy of growth and innovation.
• Guelph – Royal Canin: A $39 million modernization program has improved safety and quality standards, while increasing production capacity by 12 percent. Energy efficiency gains include a 12 percent reduction in thermal energy use and an 11 percent reduction in electricity consumption.

Together, these upgrades demonstrate how targeted capital investment can deliver both operational and environmental returns at scale.

SUSTAINABILITY AND EFFICIENCY IN FOCUS

Beyond capacity expansion, the program reflects a clear emphasis on sustainability. Across all sites, Mars has embedded energy efficiency, resource conservation, and emissions reduction into its operational improvements.

From reduced electricity consumption in Newmarket to lower water usage in Bolton and improved thermal efficiency in Guelph, the investment illustrates how manufacturing modernization and environmental responsibility can go hand in hand.

This dual focus aligns with broader industry trends, where manufacturers are increasingly expected to deliver growth while minimizing environmental impact.

EMPOWERING PEOPLE AND COMMUNITIES

Central to Mars Canada’s strategy are its 1,800 Associates across Bolton, Newmarket, and Guelph. The investment not only enhances production capabilities but also creates safer, more advanced workplaces that support employee well-being and productivity.

By strengthening local manufacturing infrastructure, Mars is also contributing to the resilience of Canadian supply chains and supporting regional economic development.

The company’s continued investment reflects confidence in both its workforce and the broader Canadian market, positioning its operations for sustained growth in the years ahead.

A LONG-TERM VISION FOR GROWTH

Mars Canada’s $180 million investment represents more than a series of facility upgrades – it is a strategic commitment to the future of manufacturing in Canada.

By combining innovation, sustainability, and workplace modernization, the company is building a foundation for long-term competitiveness, while ensuring its products continue to meet the needs of consumers and pet owners alike.

As the manufacturing landscape evolves, Mars’ approach offers a clear blueprint: invest in people, embrace technology, and embed sustainability at every level of operations.

In doing so, the company is not only strengthening its own position but also contributing to a more resilient, efficient, and forward-looking manufacturing sector in Canada.

The post Mars Canada Powers Future Manufacturing appeared first on Manufacturing Outlook.

Whirlpool Corporation is expanding its North American manufacturing network with a $60 million investment in a new Ohio production facility, adding further capacity to support its domestic appliance supply chain.

Expanding Whirlpool’s U.S. footprint

The company announced plans to acquire and convert an existing manufacturing building in Perrysburg, Ohio, creating what will become Whirlpool’s 11th factory in the United States and sixth in Ohio. The site, previously used for solar panel manufacturing, will be redeveloped over the next two years with advanced manufacturing technologies and automation.

Once operational, the plant will produce appliance components and subassemblies for washers and dryers, serving as a support hub for Whirlpool’s nearby Ohio manufacturing operations.

The expansion is expected to create between 100 and 150 new jobs.

Investment builds on broader U.S. manufacturing push

The Perrysburg project marks the latest step in Whirlpool’s broader domestic manufacturing strategy, following the company’s previously announced $300 million investment in its laundry operations, aimed at increasing capacity through a new production line and creating 400 to 600 additional jobs.

“Whirlpool Corporation is leaning into our commitment to U.S. manufacturing,” said Marc Bitzer, Whirlpool Corporation chairman and CEO.

“When there is a level playing field, our American workers can out-compete anyone in the world. This investment is proof of our confidence in that workforce and our determination to win by producing high-quality, innovative products in the U.S.”

Automation and workforce development central to strategy

Whirlpool said the new Ohio facility will combine automation with workforce-led manufacturing processes as part of its approach to modernising domestic production.

“This new facility represents an evolution in American manufacturing,” said Kristin Day, Whirlpool Corporation vice president of U.S. manufacturing.

“By creating a hybrid environment where cutting-edge automation meets human ingenuity, we are not just building appliances—we are building the future domestic production for our industry. Our people remain the foundation of our success, and these tools will empower them to reach new levels of precision and efficiency.”

Domestic sourcing remains a core supply chain priority

According to Whirlpool, approximately 80% of the major appliances it sells in the U.S. are produced domestically.

It has spent $23 billion on manufacturing, labour and logistics over the past decade, including more than $6 billion with U.S. suppliers last year alone.

Whirlpool said the Perrysburg investment will strengthen support for its broader U.S. manufacturing network while reinforcing its position as a major domestic producer.

The company expects to hold a formal ribbon-cutting ceremony for the facility later this year.

“The Trump Administration’s agenda is accelerating America’s industrial resurgence by reducing trade barriers and ensuring that American workers and businesses can compete on even footing,” said U.S. Trade Representative Jamieson Greer.

“Today’s investment by Whirlpool Corporation demonstrates how an America First trade policy can strengthen the country’s manufacturing base, create jobs, boost domestic production and support local economies.”

The post Whirlpool Expands U.S. Manufacturing Footprint with New Ohio Facility Investment appeared first on Manufacturing Outlook.

Issue 11

Aerospace & Defence Manufacturing

Artemis II : A Giant Leap for Lunar Ambitions

As humanity sets its sights on the moon once more, NASA launched a bold quest to establish a lasting presence beyond our planet, paving the way for future exploration and discovery. We delve into the manufacturing processes behind the Artemis II mission.

By

Rachel Carr

Apr 21, 2026

Read More

Oil & Gas Manufacturing

Viru Keemia Grupp : Oil Shale for Estonia

Viru Keemia Grupp’s passion is for Estonia’s main natural resource – oil shale. Ahti Asmann, CEO and Chairman of the Management Board, elaborates on how the group is dedicated to the entire oil shale processing chain.

By

Ryan Gray

Jack Salter

Apr 14, 2026

Read More

Electronics & Electrical Manufacturing

AME Systems : Electrical Innovation at its Finest

Delivering quality, customised electrical solutions businesses can rely on, AME Systems provides state-of-the-art products for industries across the globe. We revisit the company with Nick Carthew, Managing Director.

By

Cameron Lawrence

Rachel Carr

Apr 14, 2026

Read More

Construction & Building Materials

Trimo : Excellence in Building Envelopes

Equipped with unmatched knowledge of building façades garnered from over 60 years in business, Trimo takes building envelope solutions to a new level. We speak to Nay Tawile, CEO, and Janez Kunič, CCO, about the company.

By

Cameron Lawrence

Lucy Pilgrim

Apr 21, 2026

Read More

Home Appliances & Electronics

Kamstrup : From Global Expertise to Local Impact

Equipped with a thorough localization strategy that is key to minimizing water loss across the North and South America regions, Kamstrup continues to increase its scale and reach. We catch up with Bruce Bharat, Regional President – Americas.

By

Poppi Burke

Lucy Pilgrim

Apr 14, 2026

Read More

Metal & Machinery Manufacturing

Roma Wire and Steel : Forged in Roma

Roma Wire and Steel is a leading independent supplier of a wide range of steel products to rural and regional Queensland. Owner, Natalie Dingle, highlights the family-owned company’s exemplary local knowledge and customer service.

By

Jack Salter

Apr 14, 2026

Read More

Manufacturing Insights

Portals : Bridge to a United Planet

Portals are technology art sculptures that allow people to connect above borders and labels and meet fellow humans from across the globe. We connect with Nicolas Klaus, Partner and Chief of Growth at Portals Organization.

By

Jack Salter

Apr 15, 2026

Read More

Manufacturing Insights

JBF Consulting : A Strategy-First Approach to Technology Buying

Tara Buchler, Principal of Strategy at JBF Consulting, provides practical guidance for manufacturing leaders navigating complex technology decisions in a rapidly evolving market.

By

Tara Buchler

Apr 15, 2026

Read More

Manufacturing Software & Technologies

Digital Matter : Long-Life Asset Tracking

Digital Matter helps businesses connect, protect, and derive more value from their assets. Loïc Barancourt, CEO, discusses how manufacturers can leverage new technologies to improve visibility across manufacturing plants and supply chains.

By

Lily Sawyer

Apr 15, 2026

Read More

The post Manufacturing Outlook Issue 11 appeared first on Manufacturing Outlook.

Digital Matter helps businesses connect, protect, and derive more value from their assets. Loïc Barancourt, CEO, discusses how manufacturers can leverage new technologies to improve visibility across manufacturing plants and supply chains, and the importance of human insight as Industry 5.0 moves ever closer.

LONG-LIFE ASSET TRACKING

As the dawn of Industry 5.0 shifts away from overreliance on machinery and returns to focusing on people, manufacturers are increasingly using the Internet of Things (IoT) to elevate human decision-making by turning machine data into trusted, actionable insights.

Over the last decade, Industry 4.0 has focused on automating processes to ensure a strong return on investment (ROI) and increase efficiencies.

When dealing with complex systems and supply chains, however, the decision-making process often involves a plethora of subtleties and nuances that can only be made sense of by humans with a deep understanding of the industry and its complexities.

“The supply chain leader is at the heart of Industry 5.0 – subject matter experts with amplified capacity and bandwidth who have the most insight and can therefore make better decisions,” opens Loïc Barancourt, CEO of Digital Matter, a leading global developer and manufacturer of IoT hardware solutions.

Ultimately, the systems invented during Industry 4.0 should now be used to facilitate and augment access to enhanced insights, so better decisions can be made as the industry advances towards Industry 5.0.

DEPLOY ONCE

Capable of determining whether IoT deployments succeed or are abandoned, battery life, device design, and connectivity strategy are becoming increasingly important for supply chain leaders seeking reliable, end-to-end visibility across operations.

“When you consider a manufacturing business operating at scale, you’ve got a large supply chain with lots of moving parts,” Barancourt exemplifies.

He points out the importance of maintaining full visibility of the assets moving through the supply chain – from supplier through to manufacturer, distributor, and end user.

As such, tracking returnable transport packaging (RTP) used throughout these operations has become an important aspect of maintaining a transparent and efficient supply chain, enabling full visibility, resilience, and security.

“If a container, rack, or any specialised RTP doesn’t return in time, it can cause production to stop, which is why tracking is critical,” Barancourt emphasises.

The use of IoT inside manufacturing plants is also on the up, improving visibility within manufacturing processes.

“In instances such as these, manufacturers need a tracking device that is robust, long-lasting, and can send regular volumes of data over multi-year periods,” he outlines.

As such, Digital Matter’s ‘deploy once’ approach focuses on engineering ultra-rugged IoT trackers that function reliably for their entire service life – often spanning up to a decade – without requiring maintenance or battery changes.

The company also recognises that whilst connectivity can influence battery performance, the greater challenge in global supply chains is network availability, which varies significantly by region.

To address this, its devices are designed to intelligently determine their location and connect to the most appropriate available network, helping maintain consistent visibility across diverse geographies without compromising efficiency.

“It’s a delicate art and fine balance to strike, but something we’ve mastered here at Digital Matter,” Barancourt prides.

THE REAL ROI

As supply chain visibility gaps beyond the factory floor continue to impact production readiness, resilience, and decision-making, returnable assets across upstream and downstream operations are becoming more frequently lost, damaged, or delayed.

Large-scale original equipment manufacturers (OEMs) in the automotive space, for example, are working hard to address these gaps as they require complete visibility to ensure parts are in transit, preventing potential issues before they escalate.

“If your supplier doesn’t have enough RTP to move goods, you can anticipate this and manage your asset fleet with visibility, which leads to better, more well-informed decisions being made,” Barancourt explains.

As such, with optimised visibility, manufacturers can make their fleets work harder and smarter.

In this way, the deployment of IoT trackers supporting systems to manage RTP is at the core of ROI when it comes to utilising assets advantageously to guarantee a smooth supply chain.

“The real value comes from improved asset utilisation – that’s where the real ROI is,” he adds.

DETAILS MATTER

Digital Matter is helping industrial teams deploy low-power IoT in ways that truly make sense in live production environments, where performance expectations are high and failure can be costly.

In the world of battery-powered devices, the margin for error is slim. Small design miscalculations can have disproportionate consequences once devices are deployed at scale, often surfacing as significantly shorter battery life than anticipated.

For customers building long-term visibility strategies, those missteps can quickly undermine the business case.

“Mistakes can cause the battery to drain two, three, or four times faster than it should,” Barancourt sets out.

“If battery life drops from six years to six months, that’s a major issue.”

This means a digital control tower that a supply chain leader has built for end-to-end visibility can suddenly lose effectiveness if hardware in the field underperforms.

Ensuring a trusted, predictable flow of data from distributed physical assets back into those systems is critical – and exactly what the company is designed to deliver.

Digital Matter’s attention to detail has enabled it to build a reputation as a global leader, with constant innovation delivering reliable solutions for customers looking to connect their assets.

In the year ahead, the company’s vision is to become the partner of choice for tracking and monitoring the assets that matter.

“We have 1,500 resellers around the world who trust us with their tracking and monitoring requirements,” Barancourt tells us.

As such, it is seeing strong demand from resellers serving manufacturing and supply chain customers, particularly when it comes to supply chain visibility – an area in which it has identified significant growth.

“We’re doubling down on innovation in this area, with new products including cold chain solutions and cellular-connected labels launching soon,” he reveals.

Looking to the future, Digital Matter also anticipates furnishing Industry 5.0 supply chain leaders with AI-enabled software solutions to make better decisions.

“We want to be the trusted provider of reliable physical data feeding into those AI-native operations,” he confidently concludes.

MANTA FUSION – IOT SENSOR PRODUCT OF THE YEAR

Earlier this year, Digital Matter’s Manta Fusion tracking device was selected as IoT Sensor Product of the Year at the 10th annual IoT Breakthrough Awards.

Recognised for its approach to delivering multi-technology location accuracy, ultra-long battery life, and advanced sensing, the tracker aligns with the company’s ‘deploy once’ approach thanks so its 10+ years of battery life.

Barancourt cites the sensor’s ability to achieve superior outdoor location accuracy whilst maintaining the same exceptional indoor performance, with the award serving as a recognition of the company’s commitment to delivering practical, long-life solutions that perform reliably in the field.

As such, Manta Fusion sets a new standard in IoT asset tracking and sensing.

The post Digital Matter : Long-Life Asset Tracking appeared first on Manufacturing Outlook.

Tara Buchler, Principal of Strategy at JBF Consulting, provides practical guidance for manufacturing leaders navigating complex technology decisions in a rapidly evolving market.

A STRATEGY-FIRST APPROACH TO TECHNOLOGY BUYING

Technology buying failures in manufacturing rarely occur because an organisation selects the wrong software or platform.

They happen much earlier – when companies enter the request for proposal (RFP) process without clear strategic alignment, defined operational priorities, or a shared understanding of how technology should support long-term business goals.

Manufacturers today operate in an increasingly complex environment shaped by global competition, margin pressures, labour constraints, supply chain disruptions, and accelerating technological change.

Digital transformation initiatives – from smart factories to advanced analytics – promise significant performance improvements, but they also introduce new risks when not guided by clear strategy.

Most manufacturing technology buyers only experience a limited number of operating models during their careers, often within a single company or industry segment. Whilst they develop deep expertise in their own environments, they may have limited visibility of what best-in-class operations look like across diverse manufacturing contexts.

Meanwhile, the pace of technology innovation continues to accelerate. Integrated planning systems, automation platforms, predictive analytics tools, and end-to-end visibility solutions are proliferating, often accompanied by increasingly ambitious vendor claims.

Against this backdrop, many organisations treat the RFP process as the starting point rather than the culmination of strategic planning. They focus heavily on documenting current processes and addressing immediate operational pain points, which can lead to predictable and costly mistakes.

Below are 10 common ways manufacturing leaders get technology buying wrong before the RFP even begins, and how a strategy-first approach produces stronger outcomes.

1. STARTING WITH A SYSTEM OVER AN OUTCOME

Many initiatives begin with a predetermined conclusion: “We need a new enterprise resource planning system”, “We need automation technology”, or “We need a planning platform”.

When technology is treated as the objective, requirements focus on system capabilities rather than business outcomes. Organisations spend time defining features instead of clarifying what they truly need to achieve – improved margins, greater operational flexibility, reduced costs, or scalable growth.

A strategy-first approach begins with business goals and works backwards to determine the appropriate role of technology.

2. ADRESSING SYMPTOMS RATHER THAN UNDERLYING CAUSES

Operational frustrations such as manual processes, delayed reporting, and inconsistent performance often dominate early discussions.

However, these issues frequently reflect deeper challenges such as outdated workflows, unclear decision ownership, or fragmented organisational structures.

Selecting technology to address symptoms rather than underlying causes often embeds inefficiencies into new systems.

3. ASSUMING TECHNOLOGY WILL FIX BROKEN PROCESSES

Technology does not fix flawed processes – it accelerates them.

Automating inefficient workflows increases the speed at which those inefficiencies occur. Organisations may gain enhanced visibility but remain locked into ineffective operating models.

Redesigning processes before implementing technology ensures systems support optimal performance.

4. SKIPPING THE TARGET OPERATING MODEL

Many manufacturers struggle to clearly define how they want operations to function in the future as digital transformation accelerates.

Without a defined target operating model, technology requirements often blend legacy practices with aspirational goals. Vendors are asked to support conflicting expectations such as centralised versus decentralised decision-making.

Clarifying future roles, decision rights, and performance expectations provides essential direction for technology investments.

5. LETTING ONE FUNCTION DRIVE RFP

Technology buying is often led by a single group – IT, operations, finance, or engineering.

Optimising from one area frequently creates unintended consequences further in the operational process, limiting enterprise-wide benefits.

Cross-functional collaboration ensures technology supports end-to-end operational performance.

6. OVERLOADING FEATURE LISTS

Extensive feature checklists rarely improve decision quality.

Organisations may select systems capable of numerous functions but are unable to meaningfully improve strategic and operational decision-making.

Technology should be evaluated based on its ability to support better decisions rather than its feature count.

7. IGNORING CHANGE MANAGEMENT UNTIL AFTER SELECTION

Change management is often treated as an implementation issue rather than a strategic consideration.

New technologies frequently require adjustments to workflows, workforce skills, and organisational culture. Without adequate preparation, adoption can stall.

Aligning technology ambition with organisational readiness improves success rates.

8. ASSUMING DATA IS GOOD ENOUGH

Manufacturing systems depend heavily on accurate, consistent, and well-governed data.

When data quality is poor, even advanced technologies struggle to deliver reliable insights or performance improvements.

Assessing data maturity early enables organisations to address gaps proactively.

9. TREATING RFP AS A DOCUMENTATION EXCERSISE

RFPs often become static documentation exercises rather than strategic decision tools.

When organisations focus on gathering information instead of testing assumptions and clarifying priorities, they miss opportunities to strengthen their technology strategy.

Using the RFP process to challenge thinking produces better outcomes.

10. RUSHING TO SHOW PROGRESS

Pressure to demonstrate progress often leads organisations to issue RFPs before strategic alignment exists.

Whilst this may create short-term momentum, shortcuts taken early frequently result in delays, rework, and missed performance expectations later.

Strategic alignment ultimately accelerates execution.

THE BOTTOM LINE

Most manufacturing technology failures are not the result of poor vendor selection. They stem from organisations being unprepared to make strategic decisions in increasingly complex and rapidly evolving environments.

A strategy-first approach ensures technology investments support long-term business goals, improve operational performance, and deliver a sustainable competitive advantage.

The post JBF Consulting : A Strategy-First Approach to Technology Buying appeared first on Manufacturing Outlook.