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The manufacturing industry enjoys a rich technological evolution. It is also one of the top industries with the highest investment in technology and specifically IoT.
As per a Marketsandmarkets report, the global IoT in manufacturing market size is expected to grow from USD 33.2 billion in 2020 to USD 53.8 billion in 2025, at a CAGR of 10.1% in the given period. Technological innovations have transformed various industries, sectors, and companies right from accelerating production, product development, software integrations, improving CX, and more.
According to a Mckinsey report, operational performance increases up to 30-50% just by the implementation of agile transformation that is possible with smart manufacturing. Giants such as Ford, Nike, Bacardi, and so on have heavily invested in connectivity and smart manufacturing technologies to get the best out of the predictive and actionable analysis.
Manufacturers need to bring in AGILITY to keep up with competition, faster ways of production, setting up smart factories, and responding to market variations with better-informed decisions.
Lamborghini has also set up its smart factory for the production of its car - Urus. Adidas and Amazon are already treated as smart manufacturing success stories.
What is making these companies adopt smart manufacturing? What is it that smart manufacturing is capable of? How is the industrial internet of things shaping newer possibilities? What does the future hold in place for companies and industries adopting smart manufacturing? Let’s find out in this article.
Every industry has challenges it needs to deal with and figure out its way to overcoming them, which in today’s Industry 4.0 is easier due to the implementation of smarter technologies. The manufacturing industry too, has its challenges, some of which include:
According to a study by Deloitte and The Manufacturing Institute Study Finds, it is reported that the manufacturing skills gap can result in 2.1 billion unfilled jobs by 2030. The results also mentioned that 71 % of the US manufacturers feel that it is much harder to attract and retain employees in 2021 and beyond. Not having enough labor/manpower to function with can be a major issue for any industry.
The demand surge is ever increasing and thus manufacturers need to tend to this by increasing capacity, hiring more skilled personnel, forecasting demands accurately to avoid wastage or short supply, meeting the required demand on time, and keeping costs in check. New equipment, facility, personnel, and acquiring new customers can lead to a huge increase in costs. Hence, it involves more investment to meet the increasing demand. Also, given the shortage of labor, the concern is soaring.
Similar to demand planning, aligning inventory according to changes in demand, supply chain issues, and more is a task in itself. Not having proper inventory management systems and software may lead to fluctuations in supply and demand, over or under-producing, and a ton of wastage. A requirement to use the right tools and training comes into play to manage the system.
Handling excess, unused and obsolete stock can add up to costs. Maintaining raw materials ahead of required production needs to be managed as well. Planning well for the timely production of products and delivery is crucial. Responding to uncertainties in the supply chain becomes a major issue when real-time insights are not in hand.
Newer technologies and innovations are disrupting the industry and helping overcome such issues to attain better efficiency, minimize costs, and improve overall growth and profits. The growth and prosperity of the manufacturing industry are directly proportional and advantageous for the growth of the economy as well. Smart manufacturing is evolving the industry 4.0 and how!
Given the importance of the manufacturing industry and the depth of challenges, manufacturers have now begun to establish and innovate with newer, smart technologies and to improve efficiency and level up performance. Smart manufacturing is an amalgamation of various technologies such as:
According to Fortune Business Inights report, the global Smart Manufacturing market size is projected to reach US$ 358210 million by 2027, from US$ 185410 million in 2020, at a CAGR of 9.9% during 2021-2027.
The Gartner Smart Manufacturing Strategy and Implementation Trends Survey2020, reports that less than 50% of manufacturing leaders are presently implementing or have a fully deployed smart manufacturing strategy.
The idea behind a successful smart manufacturing strategy is to develop a competitive edge and a profitable business overall.
Apart from the main technologies that make smart manufacturing what it is, having the right strategy and team to implement it and carry it forward is vital.
When Mann+Hummel, a global leader in the field of filtration devices approached us to figure out how IoT could be leveraged to reduce their operating costs and increase efficiency, we crafted an extensive plan to augment their devices with smart capabilities which would enable them to send valuable usage data, diagnose problems, remind users and manufacturers about service schedules, and more. This helped the company deliver a superior customer experience resulting in increased sales and customer loyalty.
As per a Mckinsey report, the manufacturing industry has the potential to automate up to 60%, one of the highest percentages for any industry. Thus, research on newer ways to innovate with technologies in manufacturing and implementation of smart manufacturing is stirring up. The inclusion of 5G into smart manufacturing to gear up to speed, and edge computing capabilities, to provide better real-time insights and smoother communication within the supply chain is something to look forward to and is increasingly being leveraged too.
Further adoption of 3D printing and digital twin technology can also disrupt and lead to further digital transformations in the future.
The experience gained through working with major enterprises for their digital transformation journey in the manufacturing sector, coupled with extensive research, our IoT landscape report 2021 provides valuable insights and can help you achieve great results. It is a one-stop destination for everything IoT and covers key points such as IoT security, the right approach to building IoT solutions, and the results one can expect from IoT implementations.
The fact that smart manufacturing is a rainbow of various technologies, widens the scope of innovation and prospective probable outcomes and possibilities it holds for the future. It would be interesting to see how each technology under smart manufacturing unfolds new opportunities the manufacturing industry can leverage to drive great results.
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