How business automation helps manufacturing navigate crises: lessons from Ukraine

In one of the latest Automation Caffeine episodes, Alexander Yurchak, CEO of the Association of Industrial Automation of Ukraine, shared his insights on the challenges facing European manufacturing, especially in Ukraine. The manufacturing sector has faced multiple crises, from COVID-19 disrupting global supply chains to the war in Ukraine impacting energy supplies. These difficulties have forced manufacturers to adapt quickly to stay competitive.

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One key takeaway from this conversation was the essential role of business automation in helping manufacturers remain flexible and resilient in these uncertain times.

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The crisis challenge: disruptions across manufacturing

Manufacturers across Europe have been dealing with significant disruptions in recent years. In the industrial automation sector, valued at around €50 billion, delivery times for crucial products have increased dramatically. For some key mechatronic components, lead times have jumped from three months to 18 months. On top of that, the war in Ukraine has caused energy shortages, pushing manufacturers to reconsider their dependence on traditional energy sources like coal and gas.

Here are the key challenges manufacturers in Europe are currently facing, according to Yurchak:

• Supply chain bottlenecks: Long lead times for components, especially those sourced from Asia, have made it hard for manufacturers to stick to production schedules.

• Energy shortages: Rising energy costs and supply instability, made worse by the war in Ukraine, have led manufacturers to focus on energy efficiency.

• Aging workforce: Fewer young workers are entering the manufacturing industry, creating a skills and labor shortage.

• Digital and green transitions: Manufacturers are under pressure to adopt both digital and sustainable practices. Often, these are seen as separate challenges, but they are increasingly interconnected.

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Automation: a lifeline for manufacturing

Despite these challenges, automation offers solutions that can help manufacturers stay resilient. Here are some of the ways business automation can help:

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1. Optimizing supply chain management

Automation can streamline supply chain operations by tracking inventory, finding alternative suppliers, and predicting delays. Yurchak pointed out that automation tools can help manufacturers manage logistics more effectively, reducing the impact of long lead times and supply chain disruptions.

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2. Improving energy efficiency

Automation can also play a big role in improving energy efficiency. Using predictive algorithms, manufacturers can adjust their energy usage based on real-time demand. Ukrainian companies, for example, are turning to automation to forecast energy needs and optimize efficiency, particularly as they increase their reliance on renewable energy sources like wind and solar.

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3. Bridging the skills gap

With fewer young people entering the manufacturing industry, automation can help close the labor gap by taking over repetitive, low-skill tasks. This allows skilled workers to focus on higher-value activities. Automation tools, often paired with AI, can also help with training, making it easier for new workers to learn complex machinery quickly.

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4. Supporting the digital and green transitions

Automation can help manufacturers tackle digital transformation and sustainability efforts at the same time. Yurchak emphasized that automation technologies like the Internet of Things (IoT) and blockchain enable manufacturers to create smarter, more efficient factories that use fewer resources and generate less waste. For example, digitized operations make it easier for manufacturers to adopt green energy sources like hydrogen and microgrids.

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Lessons from Ukraine: resilience through automation

The war in Ukraine has pushed manufacturers to find innovative ways to keep production running despite energy instability and infrastructure damage. This has accelerated the adoption of automation technologies, particularly in areas like energy management and production forecasting. Ukrainian manufacturers are increasingly turning to decentralized energy sources and automated systems to stay operational during the conflict, providing a clear example of how automation can help businesses survive during crises.

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Conclusion: automating for a resilient future

In a time of crisis, business automation is a lifeline for manufacturers. Whether facing supply chain issues, energy shortages, or a shrinking workforce, automation allows manufacturers to adapt and thrive in an unpredictable world. By leveraging automation, manufacturers can build resilience and ensure they are prepared for whatever challenges the future may bring.