Challenges To Overcome for Manufacturing Breakthrough Performance

The Opportunity

The manufacturing sector has an opportunity to grow significantly in the years ahead. Manufacturing companies that create products from raw materials or components, either by machine or by hand, in plants, factories, and mills are a significant driver of the U.S. economy.

One of the encouraging trends is reshoring. There are several reasons for the shift from offshoring to?reshoring.

• Economies in many go-to offshoring countries have grown stronger, resulting in increased wages for their residents.
• In the locations where labor is still inexpensive, the infrastructures often cannot handle complex manufacturing operations.
• During the pandemic, many companies realized the fragility of their supply chains and they are now looking to reshore suppliers in critical medical and food supply chains.

As an industry, manufacturing is undergoing a digital transformation. The recent proliferation of technologies like IIoT, artificial intelligence, 3D printing, robotics and Smart Manufacturing are disrupting the sector so much that many manufacturers are upgrading the way they perform and manage production and are even rethinking their business models and supply chains—all of which are elevating the bar for manufacturing operational excellence.

The Challenges to Overcome

However, the sector could miss out on much of this opportunity if several key challenges are not addressed for manufacturers. ?

• Need for Higher Productivity
• Complexity of Products and Technology
• Systems and Data Integration ??
• Supply Chain Resiliency
• Lack of Skilled Talent?

Need for Higher Productivity

For U.S. manufacturers to be competitive in the global marketplace they must achieve higher levels of productivity through adoption of advanced technologies, smart manufacturing techniques, and a higher skilled workforce.

The resurgence in reshoring will lead to an increase in U.S. made products in the future. However, to sustain the reshoring trend, manufacturers must achieve higher performance using new technologies like smart manufacturing and robotics to automate many of the processes that used to require intense human labor.

Labor is not the only expensive resource for manufacturers, the smart manufacturing innovation needed includes the technologies that contribute to reduce the industry’s energy usage, carbon footprint, and use of nonrenewable resources (like oil, natural gas, and coal).

Complexity of Products and Technology

One thing is certain: change and progress are inevitable. The pace of technology innovation continues to increase and product, production processes and supply chains continue to get more complex. Manufacturers have a long history of embracing technology to drive efficiency. Now they must also use technology to manage the complexity of new products and processes.??

From sensors to automation, artificial intelligence, 3D printing, robotics and cloud computing, a key challenge for many manufacturers is keeping up with the rapid pace of technology innovation. Not only to use it in their products but also to leverage it in their processes and customer services.

We have been hearing about the promised value of Industry 4.0 technologies for several years and many manufacturers agree on this potential. However,?the industry productivity has been flat?for the last decade. Many manufacturers have started their digital transformation initiatives but a big percentage of them have stalled.

Systems and Data Integration??

Many manufacturers understand the important role technology plays, yet many also feel they are not providing their team the best tools for bottom-line success. There is often a disconnect between understanding the need for new technology and actual implementation and adoption.

Manufacturers have been enhancing their production systems and implementing newer industrial automation equipment that incorporates sensors, controllers, computers, and network connectors. The use of robotics including robots working alongside humans is expected to triple or quadruple over the next five years. Yet, the cost and complexity of systems and data integration remains a barrier to wider adoption of Smart Manufacturing technologies and techniques that allow enhanced data-driven operations in a secure, open, and scalable way.

The good news is that new Smart Manufacturing solutions are entering the market for low-cost, scalable infrastructure that enables a highly connected and data rich operating environment— solutions that not only improve productivity but also augment the workforce and supply chain.

Supply Chain Resiliency

Shifts in sourcing and?shipping logistics?are constantly evolving throughout the manufacturing industry, but it was especially true as a result of the COVID pandemic.?Other global factors like trade wars, military conflicts, and climate change are causing uncertainties and risk concerns for manufacturers. Manufacturing supply chains will need to be more resilient in adapting to potential future disruptions.

Product designs are also getting more intricate with an increasing number of electronic components, microprocessors, and embedded software. Not only are the number of components increasing, but parts are much smaller, more technologically advanced, and sourced from multiple vendors adding more complexity to the product and its supply chain.

Modern supply chains are dynamic with a lot of change taking place, a lot of stakeholders involved, and increasing requirements for data exchange for higher collaboration, transparency, and risk management.?Organizations need information systems to help with these complexities in the product lifecycle starting with design, through supply chain and?manufacturing operations.

Manufacturers must increase their efforts toward digital supply chain projects that build agility and scalability to help to manage risk during disrupted and uncertain times. Manufacturers must focus not only on improving cost and quality, but also on delivering the best customer experience and competing in a future market landscape of highly integrated manufacturing and service ecosystems.

Lack of Skilled Talent ??

Today’s manufacturers need workers with more advanced technical skills than ever before. Unfortunately, there aren’t enough workers with these skills to fill the many roles available today, creating what is known throughout industry as the “skills gap.”

During the past several years,?the skills gap has been top of mind?for U.S. manufacturers. The data shows that the demand for jobs in the manufacturing sector has been and continues to grow. These are good paying jobs with a median salary of $46,000. Jobs that have a significant economic impact on the economy for the country.

As reshoring trends continue and more baby boomers retire, many manufacturing jobs will continue to go unfilled over the next decade. In this age of automation and robotics, skilled workers are still needed to operate and maintain complex machinery, integrate technology and processes, fill managerial positions, and perform decision-making and problem-solving tasks. To fill the widening skills gap,?manufacturers will need to not only attract new workers, but also train existing workers on new skills and technologies.

Many of the software technology required for Smart Manufacturing solutions are becoming more affordable, yet the time, complexity, cost and knowledge required for implementation and integration continue to be a barriers to adoption for the average manufacturer.

Smart Manufacturing solutions for interoperability and enhanced insights are valuable tools, however to truly mine that potential value, manufacturers also need (i) a talent pool ready to implement and sustain the solutions, and (ii) a workforce ready to leverage the insights and embrace a culture that values transparency and collaboration.

Smart Manufacturing education is needed to teach the new workforce how to implement and leverage the many practical technical options available. Solutions that make it easy to integrate data collection from production assets and processes without constraining a manufacturer to a single vendor.

Solutions are needed for both (i) education at universities and colleges, and (ii) training at trade schools, community colleges and high schools. Manufacturers are asking universities and colleges to help get the Smart Manufacturing education down to high school level, so it does not require a four-year degree to get the skills.

Manufacturers also need training to upskill the workforce. There is a need for continual learning because the skills for new methods and technologies need to be refreshed every four or five years.

One way to expand the talent pool is by attracting more underrepresented groups such as women and ethnic minorities to manufacturing careers and education. To help attract this talent pool, education options need to be more affordable and modular to make it easier to acquire the skills while working. Micro-credentials can be a solution if that can be standardized for the industry so they are credible to manufacturers and valuable on the resume of job seekers.?

In addition, manufacturing education has to be cool with engaging hands-on exercises with technologies like robotics and 3D printers. Education organizations can help attract more students to manufacturing and win over parents, so they encourage their kids into manufacturing careers. Today’s Smart Manufacturing solutions are not only increasing productivity for manufacturers but are also making an impact on climate change. Students should be able to simply scan a QR, download an app to their phone and realize that today’s manufacturing is not their grandfather’s manufacturing.

It is encouraging that the U.S. government is investing to help manufacturers tackle these challenges. To learn more about how CESMII, the Smart Manufacturing Institute, is helping tackle these challenges through ecosystem, technology and education solutions visit www.cesmii.org