By Jim J. Spiegel
The true payoff of digitization is in the future of the chemicals industry. What will be possible if data is digital and functionally connected? We will lean on market research and trends to help paint the picture of the future in the chemical industry.
Digital transformation will disrupt many paradigms in the chemical industry, from research and development to product compliance, procurement to sales and marketing.
But it would be prudent to start with the potential impacts on the workforce of a new age digital transformation. In ‘The future of work in chemicals and materials,’ Deloitte authors point out that “the industry is experiencing exponential change, as technologies such as artificial intelligence (AI) and robotics are rapidly changing the workplace.” The skills gap is one of the most significant challenges for an industry in such flux. Deloitte estimates that about 106,000 jobs will be vacant in the coming decade due to the lack of workers with the required advanced skillset.
As both the workforce drivers and workforce itself change with digital transformation, so too must the knowledge base required to operate within it. While technology advances in step with products created through digitalization, the baseline digital acumen is increasing as well. But good news for us all: digital transformation also impacts education through free courses such as MIT Open Courseware offered by the Massachusetts Institute of Technology. A quick search of AI, Machine Learning, Material Science or Data Science will produce hundreds of results of free MIT coursework available to the public. With many other institutions offering similar programs, we can imagine a new landscape in training resources equipping tomorrow’s workforce with the knowledge needed to keep up with digital transformation.
As the workforce must meet the digital demands, so will materials. In The Future of Materials, Deloitte predicts the primary shifts in demand will be around sustainability and consumer preferences. The digital drivers in sustainability are rather simple to connect due to the increasing importance placed on GHG Protocol Scope 1, 2 and 3 emissions reporting. Companies can efficiently complete required calculations and filings when all material specs are available digitally. Making document updates to comply with ever-changing regulations is simple when it’s all held in one digital location. One change can inform regulatory bodies, shipping partners or retailers simultaneously.
Consumers are pressuring the supply chain to be more transparent while increasing the overall demand for finished goods. In the case of plastics, the report cites the expected global demand “to triple between 2019 and 2060 from 460 million tons (MT) to 1,231 MT, with increased use in the transportation, construction, and packaging sectors.” Other demand-driving industries include medical devices, expected to increase by 50% between 2021 and 2029, and electric vehicles, which expect an eightfold increase in demand between 2020 and 2030. And with no signs of regulation decreasing, the need for transparent and accurate environmental data will only continue to grow.
And while the workforce skill sets and sustainability reporting are critical considerations in the future of the chemical industry, perhaps the most operationally disruptive digital transformation will come through machine learning. IBM, a long-time player in the digital realm, defines machine learning as “a branch of artificial intelligence and computer science which focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy.” Learning how humans learn is the key to the exponential growth possibilities of digitizing material data. With large enough data sets containing significant degrees of correlation, machine learning can produce predictive models that would otherwise be undetectable to an untrained eye. While advances in machine learning could reduce the team size required to conduct analysis, the team sizes of data scientists and architects will offset that impact.
Given the speed of technological and processing advances, materials will continue to evolve, and digitized data will continue to be demanded by each manufacturing step, from production to the end sale.
Learn more about UL Solutions data integration services to help your organization with its digital transformation.
Resources
The future of materials | Deloitte Insights
The Future of Work in Chemicals and Materials | Deloitte US
MIT OpenCourseWare | Free Online Course Materials
What is Machine Learning? | IBM
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