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Manufacturing Technology Insights | Saturday, January 14, 2023
The adoption of Smart Manufacturing requires a significant investment in technology, infrastructure, and workforce training.
FREMONT, CA: The manufacturing industry is experiencing a significant transformation due to the digital age. To remain competitive and profitable, companies must adopt smart manufacturing practices that rely on technology to enhance their operations.
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There is an increased focus on achieving profitable growth while upholding high-quality standards within the manufacturing industry. Manufacturers are giving priority to enhancing their operations and processes to boost productivity and profitability, all while ensuring the quality of their products is not compromised.
Key Global Findings Include:
In 2023, there are twice as many competitor companies in the manufacturing industry compared to 2022. The majority of manufacturers have not fully integrated a supply chain planning system. Their main focus in implementing smart manufacturing initiatives is to mitigate cybersecurity risks.
Through smart manufacturing initiatives, manufacturers aim to improve the quality of their products as the main benefit. They also expect to either maintain or increase their employment levels by adopting technology, with the possibility of reallocating existing workers. Almost all of the manufacturers have established policies regarding environmental, social, and governance issues, whether formal or informal.
Obstacles to Profitable Growth
Although technology adoption in the manufacturing sector is on the rise, the report finds that twice as many manufacturers as the previous year feel that their company does not possess the necessary technology to surpass their competitors. Moreover, 80 per cent of manufacturers are yet to implement a complete supply chain planning solution. These statistics suggest that there is a significant amount of ground to cover in terms of embracing advanced technologies in production chains.
In addition, cyber security risks are a primary concern that respondents want to address through smart manufacturing initiatives. 45 per cent of the manufacturers considered enhancing product quality as the primary positive outcome of technology adoption. Improving quality is crucial to ensure that products meet high standards and are of excellent quality.
Maximising the Use of Data
Smart manufacturing technology can enable companies to optimise the utilisation of data. In the current data-oriented world, businesses must focus on extracting the most value from the information they collect. Smart manufacturing technology can assist firms in making better-informed decisions, enhancing efficiency and cutting costs.
Technology plays a critical role in reducing risk and prompting growth in the manufacturing industry. However, one-third of the manufacturers experience technological paralysis due to the extensive range of systems and platforms available, which makes it challenging to decide on a particular solution. Therefore, companies need to select a partner who has comprehensive expertise and experience in their field. The right partner can provide valuable advice and guidance in implementing a solution that meets their specific needs and helps them achieve their desired outcomes.
Positive Impact on Employees
Advanced technologies can benefit both companies and their employees. Adopting technologies can assist manufacturers to grow and, at the same time, can have a positive impact on their workforce. 89 per cent of manufacturers intend to either keep their current workforce size or increase it after implementing advanced technologies.
Smart Manufacturing in the Asia-Pacific Region
Close to half of APAC manufacturers plan to adopt smart manufacturing within the next year, with India, Australia, and China already using some components of smart manufacturing. However, the biggest barriers to adopting smart manufacturing in the Asia-Pacific are employee resistance to technology adoption and change, lack of skill set to manage smart manufacturing implementation, and lack of clear definition of the value of smart manufacturing.
The smart manufacturing system that APAC respondents have seen the largest ROI is the quality management system (QMS), followed by the manufacturing execution system (MES) and enterprise resource planning (ERP). Cybersecurity risks rank highest as the obstacle all respondents are looking to mitigate with smart manufacturing initiatives.
Smart Manufacturing, also known as Industry 4.0, has the potential to revolutionise the manufacturing industry. By leveraging data and advanced technologies such as AI, machine learning, and the Internet of Things (IoT), manufacturers can optimise their operations, improve product quality, and reduce costs.
The benefits of Smart Manufacturing extend beyond the factory floor. By adopting a data-driven approach, manufacturers can gain greater visibility into their supply chain, enable predictive maintenance, and improve communication with customers. To fully realise the potential of Smart Manufacturing, companies must be willing to make this investment and commit to a culture of continuous improvement. Smart Manufacturing represents a tremendous opportunity for manufacturers to unlock growth and stay competitive in an increasingly digital and connected world.
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