Digital transformation is here, and it’s creating far-reaching changes across industries worldwide.

In the automotive manufacturing industry this transformation is increasingly driven by a combination of technological advancements, shifting market demands and ongoing labour  shortages.

Labour shortages mean manufacturers face higher wage bills and are unable to fulfil orders or scale up their businesses. According to recent research, 31% of automotive industry experts cited labour shortages as one of their top three problems. And 35% were concerned about increasing labour costs. 

Without the skilled workforce needed to create top quality components and vehicles, digital technologies offer a game-changing solution. But the gap between businesses embracing these technological developments and those sticking with the status quo is widening.

Implementing the latest technologies isn’t just an optional add-on – it’s essential.

With these changes also come challenges, like cybersecurity threats, worries about data privacy, and a lack of skills amongst the workforce.

So, as an OEM or Tier 1 supplier, how do you navigate these issues and solve your most urgent problems in an ever-evolving, increasingly- connected world? This post will outline the ways digital solutions can help tackle labour shortages, improve operations, save costs, and deliver more value for your customers—and show you how to easily implement them.

Transforming automotive manufacturing

In the high-precision, high-performance automotive manufacturing sector, there’s no room for inaccuracies or mislaid components.

When even the smallest drop in accuracy has major repercussions for production times and costs, the impact of outdated or legacy tech can be huge.

Labour shortages mean manufacturers face higher wage bills and are unable to fulfil orders or scale up their businesses. According to recent research, 31% of automotive industry experts cited labour shortages as one of their top three problems. And 35% were concerned about increasing labour costs. 

We speak to countless business leaders who need a solution to these and other major problems, like bottlenecks and supply chain delays that are slowing down their processes – and hitting their budgets. They’re often reliant on old systems or manual processes, which means they’re also missing out on significant potential improvements in efficiency and growth.

Smart technologies + OEMs and suppliers = problem solved

Spearheaded by technologies like RFID tags and readers, Work-in-Procgress  (WIP) tracking, robotics and more, the digital transformation offers solutions to these business-critical issues. 

If you’re trying to address challenges like the current labour and skills shortages these technologies are a lifeline.

Automation and real-time data collection via RFID  frees up workers from repetitive tasks and streamlines production lines. Instead of manually tracking components, new technologies deliver visibility over every part at every stage of its journey through the plant – and beyond.

This means lower labour costs and requirements, as well as fewer delays or disruptions. And these technologies don’t just solve workforce issues. They save you time and money across your production processes.

High customer expectations and just-in-time models mean production and workflow efficiency have never been so essential. As the automotive industry evolves, smart technologies enable you to avoid bottlenecks and accelerate throughput and time-to-market. You can monitor work cells and check the speed that parts move through your processes, making improvements and changes as soon as you spot potential issues.

When quality control is non-negotiable and even minor defects can trigger costly recalls or damage customer trust, real-time monitoring means you can ensure consistent product standards.

Having a comprehensive overview of your manufacturing environment is key to making data-driven decisions and anticipating changes. It’s not just about tracking – it’s about using data to gain detailed, instant insights that drive efficiency and innovation. All from your own dashboard.

Implementing digital solutions has huge benefits. The data speaks for itself – RFID can:

• Increase overall process speeds by up to 88%
• Boost revenue by 20%
• Cut total transportation and lag times by up to 84%
• Increase accuracy by up to 80%.

Peak Technologies’ Director of RFID and RTLS Solutions, Joe Martin, explains:

‘Instead of struggling to coordinate diverse, complex manufacturing tasks and improve efficiency without proper oversight of what’s going on across their plants, OEMs and Tier 1 suppliers are taking advantage of RFID technology’s unrivalled accuracy and visibility.’

Don’t get left behind

Five to ten years ago, transforming a manufacturing process with RFID-enabled solutions was a major investment, requiring significant upheaval. But today, it’s more cost-effective and simple to implement than ever before, and new tech can be seamlessly integrated into existing systems.

If you haven’t already, now’s the time to upgrade your operations

Losing out on projects to more technologically- adept companies is a real risk for those lagging behind.

As Martin puts it:

‘If you’re not implementing these technologies in your automotive manufacturing solutions, you’re losing money. And if you’re using outdated systems, you’re losing ground to competitors who are embracing digital transformation now instead of waiting to see what’s around the corner.’

Simplifying digital transformation for future-proof operations

You might be sold on the idea of upgrading your asset tracking and Work-in-Progress technologies, but we know it can be a daunting task. Despite the greater accessibility of these technologies, you may need help deploying them. Which is where we at Peak Technologies come in.

Whatever your current setup, we tailor solutions to address your unique challenges and aims, ensuring you can optimise your current manufacturing processes and stay competitive into the future. We help you increase your speed-to-market by delivering the solution quickly, so you start seeing immediate value and keep things moving smoothly.

Our world-class team of specialist engineers guides you through the process from initial assessment of your operational needs, to devising the ideal solution, to seamlessly implementing and integrating it across your operations.

We go at your pace, helping you scale up when you’re ready, and always putting your goals at the forefront of our strategic guidance.

And we don’t leave it there. We’ll support you for the whole lifecycle of the project, ensuring you can maximise the value from your solutions and deliver the best customer experience.

Our consultative approach means we make it easier for OEMs and Tier 1 suppliers around the world to get started with the latest RFID asset tracking and Work-in-Progress technologies, or to easily update existing systems so they can enhance their operations and grow their business.