Manufacturing / Agriculture

Smart Manufacturing (Key Industry Trend)

Beyond predictive analytics, manufacturers are adopting technologist like digital twins (virtual replicas of real systems) to simulate, monitor, and optimize production processes in real-time.

AgTech Innovations (Key Industry Trend)

In agriculture, technologies such as precision farming, drones for crop monitoring, and robotic harvesters are revolutionizing productivity and resource efficiency.

Alternative Proteins and Lab-Grown Foods (Key Industry Trend)

The demand for sustainable food sources has led to growth in plant-based proteins and lab-grown meat technologies, creating new markets and improving sustainability

Carbon Neutrality Goals (Key Industry Trend)

Both manufacturing and agriculture industries are under pressure to adopt green practices, such as renewable energy, sustainable sourcing, and regenerative farming techniques.

Trade-war & Tariffs (Key Industry Trend)

With global political crises brewing in various parts of the world, trade and financial sanctions and subsequent retaliatory actions have impacted manufacturing/agriculture supply chains.

• Trade wars are situations in which countries try to damage each other's trade, typically by the imposition of tariffs or quota restrictions.

• Tariffs are taxes on imported goods, paid by the importing company to the government when the goods enter the country. These taxes can be a percentage of the product's value or a fixed fee per unit, and the importer may pass the higher cost on to consumers through increased prices. Tariffs can also be offset by cutting profits, or they may reduce the amount of foreign goods imported. The government collects the tariff revenue and can also use them to respond to foreign trade practices or protect domestic industries. 

Reshoring and Nearshoring (Key Industry Trend)

Due to trade wars, geopolitical tensions, and supply chain disruptions, companies are shifting production closer to key markets (reshoring/nearshoring) to reduce risk and costs.

• Reshoring is the process of returning production and manufacturing to a company's home country

• Nearshoring is the process of relocating production to a neighboring or geographically close country rather than far-off overseas locations.

Sustainable Food Systems (Key Industry Trend)

Vertical farming has been a growing trend in urban locations to minimize environmental footprints and bring produce to major cities

• Vertical farming is a method of growing crops in vertically stacked layers, often indoors and without soil, using techniques like hydroponics, aquaponics, and aeroponics. It uses controlled environments, artificial lighting (like LEDs), and efficient resource management to produce crops year-round.

• Benefits include reduced water and pesticide use, minimal land requirements, and consistent, local food production, especially in urban areas.

Just-In-Time Inventory (JIT) (Important Terminology)

“Pull demand” inventory system in which assembly materials and support items are delivered as needed to minimize raw material inventory

Commodity (Important Terminology)

An interchangeable non-differentiated product or material that is sold freely. (Most agricultural products are commodities)

Bottleneck (Important Terminology)

The resource in a manufacturing process that is working at max capacity and thus limits the output of the entire production

Bushel (Important Terminology)

A unit of dry measure (1 cubic foot) of grain, fruit, etc., equivalent to 8 gallons of liquid (google says 9 gallons?)

Out-source (Important Terminology)

Process of contracting an outside party to complete a production or service task for a business. Typically done to save cost or due to lack of expertise.

Potential Savings with New Equipment (Important Calculations)

Potential Savings = New Equipment Expenses - Old Equipment Expenses

OR

[(Old Time x Old Labor) + (Raw Material Cost x Old Quantity) + Old Depreciation)] - [(New Time x New Labor) + (Raw Material

Cost x New Quantity) + New Depreciation) ???

Important Considerations

• Raw material costs

• Labor + wages

• Capacity constraints / bottlenecks

• Commodity or not?

• Overhead costs

• Supplier + buyer relationships

• Depreciation