My takeaways from Microsoft’s “Future of Manufacturing” article — two years later
Manufacturing is undergoing a once-in-a-generation transformation. When Microsoft published a 2023 outlook blog on the future of the industry, the themes felt bold: connected workforces, intelligent factories, agile supply chains, and sustainability.
Two years later, many of those predictions are now realities many aren’t. Here’s what stood out to me when I revisited the piece.
What Microsoft Got Right
Microsoft’s vision, in large aligns with what we’re seeing in the field:
Connected workforce 63% of frontline manufacturing workers were optimistic about tech’s potential, and today tools like Power Virtual Agents and Teams integrations are making real-time collaboration and support easier on the factory floor.
Agile supply chains Nearly 90% of supply chain leaders have prioritized investments in adaptability. Microsoft solutions like Dynamics 365 Copilot and Azure HPC are helping detect risks earlier and respond faster.
Intelligent factories Digital twins, real-time simulation, and immersive design environments are now actively shortening time to market and improving product innovation.
Sustainability Cloud for Sustainability and Azure modeling tools are helping manufacturers track energy usage, reduce waste, and improve compliance—no longer limited to large enterprises.
Where Reality Diverged
While the vision was strong, some expectations fell short or shifted.
Adoption still needs help Despite tool availability, many SMBs lack the resources to implement AI effectively without support. Clear use cases and partner guidance remain critical.
AI is not plug-and-play Success depends on clean data, proper integration, and training. The biggest wins come from solving specific pain points, not general automation promises.
Copilot’s strongest use cases surprised us Originally seen as a tool for knowledge workers, Copilot has proven especially valuable in automating high-volume, repeatable tasks like sales orders and scheduling.
Sustainability for SMBs is practical Quantum computing and futuristic innovation got the headlines—but SMBs are adopting sustainability tools that offer immediate visibility and cost control inside their current systems.
What Custom Systems Is Doing Now
These trends mirror what we help clients with every day. SMB manufacturers are dealing with increased complexity, tighter margins, and a need to move faster without growing their headcount.
Our work with Microsoft Business Central focuses on helping companies:
- Connect finance, inventory, production, and service
- Use AI to streamline workflows and surface real-time insights
- Automate routine tasks and improve operational clarity
Internally, we’ve deployed an AI agent that handles support ticket intake. It reads emails, creates tickets in Azure DevOps, and routes them properly… saving our team hours each week.
For clients, we’re building agents that:
- Automate sales order processing
- Improve scheduling and planning
- Connect previously siloed systems
These tools are up and running now and delivering real value.
What It Means for Manufacturers
Modern manufacturers don’t just need data—they need speed, accuracy, and adaptability. AI agents and connected systems are helping them:
- Respond faster to disruption
- Improve cash flow by aligning finance and operations
- Cut back on repetitive work and reduce human error
- Scale smarter with the team they already have
We’re seeing how early adopters are building a competitive edge. The shift is here, it’s just a matter of who is jumping on the train now and who is waiting until they are forced to.
If you’re exploring what this means for your business, we’d be happy to share what we’re seeing in the field and where other manufacturers are gaining ground.
— Brendan Murphy Chief Executive Officer | Custom Systems
