Over the past year, we've seen the manufacturing sector embrace or at least consider disruptive technologies that are expected to define how factories of the future will look and operate.

From mobile and social platforms to cloud computing and Internet of Things, manufacturers have faced the possibilities of reinventing their business to keep pace with rapid digitisation and the emergence of operational and informational technologies. 2016 will be a year of setting plans into motion, where manufacturers will take baby steps to realising their own vision of the future.

A focus on collaborations and partnerships

This transformation of our industry is a challenging one that must be tackled by bringing the right people on-board. For businesses such as ours forming partnerships with platform, logistics, technology and supply chain providers to facilitate the integration of new technologies is key in order to keep pace.

Cloud initiatives

Manufacturers will have to pick a starting point in their journey, and utilising cloud technology is likely to be the first initiative, mainly because of the enormous volumes of data that the cloud can help manage cost-effectively.

For bigger manufacturing businesses a full replacement of legacy solutions will take time. However, working in stages with one department moving to the cloud and pilot projects trying out edge applications the shift is inevitable.

Big data

Manufacturers cannot afford to ignore the valuable insights hiding in the vast amounts of structured and unstructured data. There will be a concerted attempt to assess the kind of business value that big data technologies can deliver and the investments required thereof. Expect the adoption of big data analytics for a better understanding of target markets for business intelligence and more efficient product development decisions. For those looking to ramp up big data analytics, labour costs towards the hiring of data scientists will account for a significant part of the overall investment.

An eye on changing demographics

According to a United Nations report - for the first time since 1950 - the global working-age population will fall this year. The impact will be felt by both developed and developing countries. Another trend likely to affect employment is the rising population of individuals aged over 65 in industrialised economies. In England, the number of over-65s is expected to increase by 51 per cent over the next 20 years.

Demographics are an important factor in analysing changes in the unemployment rate. For instance, despite the weak recovery following the 2008 recession in the United States, the unemployment rate reduced by a whopping 50%. The fact of the matter was that the economy didn't need a great number of jobs to change the unemployment rate.

What does a demographic shift mean for the manufacturing sector?

The difficulties in hiring skilled labour will continue to dog the sector. As the 65+ population increases, buying patterns can shift, benefitting some sectors like healthcare and pharmaceuticals, while possibly posing challenges to consumer goods, high-tech and automotive industries.

The manufacturing sector must factor in the willingness - arising out of a need rather than a personal preference in most cases - among seniors to continue working beyond 65. George Osborne has already announced that increases in life expectancy will trigger a rise in the state pension age, which is likely to increase to 70 within the next 50 years.

Another option to address worker shortage is to turn to the increasing number of immigrants entering the country in search of a better life. Their skill and/or enthusiasm can be leveraged to fill up vacancies at manufacturing facilities. It's a delicate subject right now but, given the need for skills and labour in our sector, an interesting debate!