The digital age has revolutionized the way businesses operate, and the manufacturing industry is no exception. As smart manufacturing gains momentum, the use of technology to optimize operations has become a crucial aspect of staying competitive and profitable. According to the “Annual State of Smart Manufacturing Study” by Rockwell Automation, data is the key to unlocking the potential of smart manufacturing.
The report surveyed over 1,350 manufacturers in 13 countries and revealed key trends and priorities for the industry.
The report highlights a growing emphasis on delivering profitable growth while maintaining high-quality standards. Manufacturers are prioritizing the optimization of their operations and processes to increase productivity and profitability, without compromising on product quality.
Key global findings include:
- Twice as many manufacturers believe their organization lacks the technology needed to outpace the competition, as compared to 2022.
- 4 out of 5 manufacturers still lack an end-to-end supply chain planning solution.
- Cybersecurity risks rank highest as the obstacle respondents are looking to mitigate with smart manufacturing initiatives.
- 45% of manufacturers cite “improving quality” as the main positive outcome they want to achieve with smart manufacturing initiatives.
- 89% of manufacturers plan to maintain or grow employment due to technology adoption. Additionally, 36% of respondents believe they will be able to repurpose existing workers due to their increasing use of technology.
- Of the 95% of manufacturers who have formal or informal ESG policies in place, 42% cite “improving efficiencies” as the top driving factor for pursuing ESG initiatives.
Obstacles to Profitable Growth
Despite the increasing adoption of technology in the manufacturing industry, the report reveals that twice as many manufacturers as in the previous year believe their organization lacks the technology to outperform their competitors. Additionally, four out of five manufacturers still do not have an end-to-end solution for supply chain planning. These figures indicate that there is still a lot of work to be done to ensure companies adopt advanced technologies in their production chains.
Moreover, cybersecurity risks are among the top obstacles respondents want to mitigate through smart manufacturing initiatives. The report shows that 45% of manufacturers listed “improved quality” as the top positive outcome they hope to gain from technology. Quality improvement is essential to ensure that products are of high quality and conform to the necessary standards.
Maximizing the Use of Data
The study also reveals that smart manufacturing technology can help companies maximize the use of data. In an increasingly data-driven world, it is essential for companies to focus on getting the most out of the information they collect. Smart manufacturing technology can help companies make more informed decisions, improve efficiencies, and reduce costs.
The report highlights that technology is essential to mitigate risks and facilitate growth. However, for a third of manufacturers, the wide variety of systems and platforms available causes “technological paralysis” that prevents them from deciding on a specific solution. It is crucial for companies to choose a partner with in-depth knowledge and experience in their industry who can advise and guide them in implementing a solution that is right for them so that they can achieve the results they want.
Positive Impact on Employees
The adoption of advanced technologies not only helps companies grow but can also have a positive impact on their employees. The report indicates that 89% of manufacturers plan to maintain or increase jobs after adopting the technology. Additionally, 36% of respondents believe they will be able to reassign existing staff to new roles due to the increased use of technology.
Smart Manufacturing in the Asia-Pacific (APAC) Region
The report also provides insights into the state of smart manufacturing in the Asia-Pacific region. Close to half (44%) of APAC manufacturers plan to adopt smart manufacturing within the next year, with China, Australia, and India already using some components of smart manufacturing. However, the biggest barriers to adopting smart manufacturing for APAC manufacturers 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/ROI 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.
The report indicates that 88% of APAC manufacturers plan to maintain or grow employment due to technology adoption. Additionally, 39% of respondents believe they will be able to repurpose existing workers due to their increasing use of technology. Of the 94% of APAC manufacturers who have formal or informal environmental, social, and governance (ESG) policies in place, close to half (48%) cite “a competitive differentiator” as the top driving factor for pursuing ESG initiatives.
