NexAIOT expects the reshaping of geographically-distributed supply chains and agile manufacturing will cause digital transformation to boom in the coming years in this insightful interview.
NexAIoT – a subsidiary of Taiwan’s NEXCOM Group – has become a leading manufacturer of industry 4.0 solutions, assisting companies in digital transformation and providing one-stop industry 4.0 services, including industrial Internet of Things and automation products, industrial computers, Gateway, and Industry 4.0 customer system integration projects.
Here, Joe Lin, President, NexAIoT discusses the challenges ahead in 2021, as well as the opportunities, technological innovations, and industry trends leading to increased awareness and adoption of digital transformation in the manufacturing sector.
Q: What market challenges do you foresee in 2021?
Joe Lin (JL): The uncertainty of the China–US trade war is expected to last more than 10 years. Global manufacturing companies should double their investment in China and outside of China to make the tariffs and other trade barriers less disruptive.
We expect the business will suffer from the impact of Covid-19 until 2021. The market rebound in 2020 Q4 will not be sustainable and the global economic outlook is still pessimistic.
There has been a surge of system component prices since the epidemic disrupted the supply chains in China in the beginning of the year.
Even if many factories in China have resumed production, there are still problems such as the shortage of raw materials and the possibility of shutting down factories due to employee illness.
The manufacturing business owner is facing the challenge of cost passthrough and shipping order uncertainty.
The business operating models, too, have come under pressure at companies facing great uncertainty. What is needed are new enterprise architecture designed to cope with the unprecedented conditions of 2020 and beyond.
The business owner is in a dilemma of extra investment in embarking on a true digital transformation and sustaining current employees.
Q: What is your strategy for market growth in 2021?
JL: The market growth will be mainly in the Smart City and Smart Manufacturing market. The solution of NexAIoT in smart transportation including IP camera, Network Video Recorder (NVR), IoT Edge Gateway and health care equipment in medical solutions are expected to be in high demand globally.
Besides, the uncertain impact of the US and China trade war will accelerate the factory migration to US and Southeast Asia to serve the strong economic regions directly.
The reshaping of geographically-distributed supply chains and agile manufacturing will cause digital transformation to boom.
The precision-forecast of orders, fast-responding supply chain, low inventory and quick-shipment cycle will be the key factors to profit, therefore a digital operating HQ and Intelligent Operation Centre are mandatory to integrate the enterprise and manufacturing operation in real time managing and strategic action.
Q: What market and technology trends from 2021 onwards do you expect will have the biggest impact on your business?
JL: 5G IoT will be a key enabler for manufacturing to undergo a major generational shift to Industry 4.0. considering many of its technical capabilities have been designed with Industry 4.0 applications in mind.
Besides. a full-blown pandemic in 2020 is forcing countless businesses to shutter and the global smart retailing market is still in downturn in the future two years.
The service robot and industrial robot deployment in public areas and factories are expected to be on the rise since robots do not need masks and can be easily disinfected, and, of course, they do not get sick.
Q: What bright spots and opportunities for growth do you see in 2021?
JL: Corresponding to the above answer, the industrial robot deployment in factories is expected to be increased. The impact of the US-China trade war and pandemic will accelerate the boundless digital operation of global business.
The requirement of integration of OT and IT system, causing the surge of gateway & edge computing deployment.
In addition, an enterprise war room is essential for the management team to do the decision making for the global business.
NexAIoT is committed to assisting companies in digital transformation and providing one-stop industry 4.0 services, including industrial Internet of Things and automation products, industrial computers, Gateway, and Industry 4.0 customer system integration projects.
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