Trends / Disruptions in Manufacturing

Part
01
of two
Part
01

Trends / Disruptions in Manufacturing, Part 1

Three emerging and disruptive trends that are affecting manufacturing in the US today include industry 4.0 and the Industrial Internet of Things, additive manufacturing, and smart robotics. These points are discussed below.

Industry 4.0 and Industrial Internet of Things (IIoT)

  • Industry 4.0 is the digitization of the workplace, and one way in which manufacturers are doing this is through the Industrial Internet of Things.
  • This innovation improves operational efficiency, sparks transformative organizational change, increases workplace safety, and encourages smarter and more innovative products.
  • PwC surveyed manufacturing companies and 72% of them say that they were increasing the level of digitization to become digitally advanced by the end of 2020.
  • Companies committed to increasing digitization of their equipment are committing $907 billion per year or 5% of their revenues.
  • Currently, 62% of manufacturing enterprises are already carrying out digital transformation pilots and programs and 86% have already adopted IIoT solutions. IIoT in manufacturing is growing so fast that it is expected to generate $1.2 to $3.7 trillion of economic value annually by 2025.
  • Even though industry 4.0 is looked at as a good thing, there are many barriers including a lack of research and standardization. This makes companies fear taking the jump.

Additive Manufacturing

Smart Robotics

  • Robots have been used in manufacturing for decades, however, they have always been very simple, single-application machines.
  • Because of artificial intelligence, robots are starting to learn, improve, and think in humanlike ways.
  • Thirty-six percent of US companies increased the use of AI and robotics over the last 12 months.
  • Now, robots are being built that can read emotions and talk, which makes it easier to communicate with humans. Collaborative robots will replace bulkier and less safe traditional industrial robots.
  • To solve the problem of a shortage of qualified skilled workers, companies today are filling the skills gap with the use of mobile robotics.
  • Even though job loss has long been a fear in the use of robotics, the industry is a lot more optimistic. Seventy percent of manufacturing businesses plan to hire more and keep up with expected growth.

Research Strategy

We searched for trends by looking through respected and popular publications and websites related to manufacturing, which included the Association of Equipment Manufacturing, Automation World, and EnergyWatch. We also used information from publications connected to well-known and respected businesses and news organizations such as Deloitte and Industry Week. To define a trend, we found the most common themes among these sources and looked for any quantitative or qualitative data that we could use to back up our assertions. We also made sure that each trend was defined as 'disruptive' in each source, but we also defined 'disruptive' as anything that causes a large change in an industry.



Part
02
of two
Part
02

Trends / Disruptions in Manufacturing, Part 2

The three emerging disruptive trends in manufacturing in the U.S. are digital transformation, intelligence manufacturing, and additive manufacturing.

Digital Transformation

  • Rapid technological advancement is changing the face of manufacturing in the US with 80% of manufacturers claiming that digital transformation is becoming a strategic priority.
  • Microsoft believes that the evolution of manufacturing technology is improving manufacturing, bettering employee support, and stimulating products' innovation.
  • As a consequence of digital transformation, an estimated 3.5 million manufacturing jobs are predicted to open in the next decade in US, with 2 million of them being unfilled.
  • Digital disruption in manufacturing is characterized by collaborative robots, the Internet of Things (IoT), and the utilization of big data and AI in manufacturing.
  • About 63% of manufacturers in the US believe that applying IoT to production increases profitability.
  • Digital disruption is also characterized by the mind-machine interface that allows employees and machines to complement each other for efficient production.

Intelligent Manufacturing

  • Intelligent manufacturing is characterized by more integrated processing systems that include the convergence of operational technology and the Internet of Things to create efficient manufacturing operations.
  • Intelligent manufacturing is founded on the large-scale integration of cutting-edge artificial intelligence and advanced manufacturing technology.
  • According to Microsoft, the projected increase in collaborative robots by 159% between 2018 and 2020 is indicative of the disruption of intelligence manufacturing. Microsoft also believes that 20% of G2000 manufactures will have moved to intelligence manufacturing by 2021.
  • Intelligent manufacturing has been fostered by the availability of AI and analytics through CNC machinery and has enabled manufactures to establish achievable long-term and short-term goals.

Additive Manufacturing

Research Strategy:

In order to identify additional emerging and disruptive trends in manufacturing in US we search through news articles, press releases, company reports, media and expert publications. After going through the numerous publications from outlets, including but not limited to Forbes, Microsoft, AEM, and NIST, we were able to identify three distinct trends. We initially focused on the emerging and disruptive trends from 2018 to 2019. However, experts reports gave us trends that extended to 2020 as well.
Sources
Sources

From Part 02
Quotes
  • "There is strong agreement that digital transformation is critical for remaining relevant, competitive and viable. Success requires acceptance that digital transformation—or, as some put it, digital evolution—is an ongoing project requiring a significant change-management effort, active top senior management buy-in and enterprise-wide participation. "
  • ""
Quotes
  • " Industry 4.0 is marked by automation and data exchange in manufacturing technologies, including cyber-physical systems, the Internet of Things (IoT), cloud computing, and cognitive computing. (pg.25)"
  • "For the modern manufacturer, data is no longer just the purview of IT; from supply chain management to the operations floor, data is now ubiquitous across the organization. As data becomes unified across the organization, IT and OT can no longer operate independently and, as a result, are converging."
  • "Manufacturing technology continues to evolve, unlocking new opportunities to improve manufacturing processes, better support employees, and create new, innovative products."
Quotes
  • "The concept of intelligent manufacturing is always changing. But in the simplest sense, it can be defined as a large-scale integration of cutting-edge artificial intelligence and advanced manufacturing technology and processes."
Quotes
  • "“smart manufacturing” is defined as: “The practice of making information about manufacturing processes available when and where it is needed, in the form it is needed, so that smart decisions can be made about the course of critical business operations.”"
  • ""Advancements in additive manufacturing can help SMMs reduce energy costs, limit waste, and boost production. Plus, these technologies are becoming increasingly affordable, according to California Manufacturing Manufacturing Technology Consulting (CMTC), the MEP Center in California.""
Quotes
  • "Manufacturers are increasingly leveraging the Internet of Things (IoT), which entails the interconnection of unique devices within an existing Internet infrastructure, to achieve a variety of goals including cost reduction, increased efficiency, improved safety, meeting compliance requirements, and product innovation. "
Quotes
  • "Analytics and artificial intelligence (AI) remain on the forefront."
  • "As we enter 2019, we can be confident that intelligent manufacturing will empower clients to evaluate and manage their operations, build innovative manufacturing systems, and grow their manufacturing businesses."
  • "The Industrial Internet of Things (IIoT) is another prior-year trend that is gaining traction rapidly and will have deeper implementation and more impact in 2019."
  • "A third trend that is growing rapidly is additive manufacturing. 3D printing has the potential to disrupt many areas of manufacturing. This could be true in areas of design as well as production. Some manufacturers are using 3D printing to decrease waste."
Quotes
  • "Additionally, we are seeing a convergence of AI and IoT, with some companies like SAS Software touting AIoT as the next wave for IoT based upon Gartner’s prediction of more than 80% of IoT projects encompassing AI."
Quotes
  • "3D printing has been hailed as a game-changing manufacturing technology for years, but has failed to fully take shape. But 2019 could represent a crossroads for additive manufacturing."
Quotes
  • " A mind-machine interface (MMI) will allow humans and machines to complement each other in what they do best, in real time. "
  • "Along with more customization made possible with robots and 3D printing, and the use of cloud computing enabling even small factories to tap into new technologies, this “Internet of Goods” will allow the creation of new business models capable of expanding the market and changing the geography of production."