The Productivity Puzzle: An Evolution of Human/Machine Relationships

Productivity?growth is fundamental to?manufacturing?success. But since peaking in 2011 , manufacturing productivity in the US has been on the decline —a trend not confined to the region exclusively. This downward trajectory is stifling industrial growth, prompting the sector globally to scramble for solutions to the productivity puzzle.

Why is productivity decreasing despite significant technological advancements? Understanding this paradox requires the close examination of a range of factors, including the use of outdated technologies, workforce challenges, economic pressures, and the increasing complexity of modern products. To reverse this downward spiral, we must address these underlying issues and note the necessity of embracing advanced robotics and AI.

The current state of the manufacturing industry

Many sectors within the manufacturing industry remain heavily dependent on outdated technologies. Industry 3.0 and 4.0 tools, such as large industrial robots, were designed for high-volume, low-mix scenarios. However, these scenarios are becoming redundant as modern manufacturing increasingly demands the ability to handle a higher mix of products with shorter lifecycles.

For instance, the automotive industry has traditionally relied on large-scale industrial robots for assembly lines. Today, the sector faces challenges in adapting to growing demand for electric cars as well as vehicles with increasing level of "mass customization", both of which have completely different manufacturing requirements. Redeploying traditional tools creates significant underutilization problems. These technologies are often purpose-built, and cannot be easily reprogrammed, if at all, to perform new tasks.

Additionally, traditional tools required heavy capital expenditure. This means that a lot of manufacturers are now waiting for the previous generation of assets they bought to either depreciate or break before investing in new technologies. For some, the only solution appears to be bringing in more people and training them to do the new work required. But when facing a mass labor crisis, how can organizations adapt?

Why change within the industry has reached a critical point

Changes in consumer demand and the economics of how supply chains now work, have led to a fundamental shift in the way manufacturers must do business. Customers now demand more personalization and customization than ever, and those who can successfully navigate this new way of life will chart a course for success.

It’s not just higher variability that’s needed. The emergence of smart products has led to a decline in shelf life for many of the items we use in our personal and working lives. Almost every piece of electronic technology we now use includes some kind of smart technology – from chips to communication and display technologies – and these have been evolving at a much faster pace.

The problem is that many manufacturers are trying to build and solve new problems using old tools. While there is no singular way forward, the increasing pressure to scale and adapt is mounting against a backdrop of low productivity and economic uncertainty.

The opportunity presented by Industry 5.0

The time has come to move away from ‘zero-sum’ automation – a top-down approach which prioritizes productivity. Instead, we must now embrace ‘positive-sum’ automation – a grassroots approach which considers the perspective of line employees.??

Positive-sum encourages the use of the very best combination of humans and technology, and is where Industry 5.0 solutions come into play. Powered by AI and advanced robotics, this approach is collaborative at its core, centering on pr

oviding a technology which evolves as we do. It’s designed to handle higher mix, unstructured environments, which may involve a variety of obstacles, objects, or situations, through harnessing advanced sensing, 3D perception, and decision-making capabilities to adapt to changing conditions.

By evolving with the needs of industry as we now know it and predict it will be, these advanced automation solutions offer a practical path forward to boost productivity and ensure long-term success, enabling quick and cost-effective redeployment.

Where to go from here

We are living in an increasingly volatile, uncertain, and complex world. If we've learned anything so far, it’s that entirely machine-run operations, which are rigid, are not fit for purpose. In this ever-evolving product landscape, we need an automation solution that can grow with us as humans.

As we look for the economy to rebound, the industry must help manufacturers migrate to this new way of working. Embracing Industry 5.0 and its collaborative approach between humans and machines is not just a solution to the current productivity puzzle, but a necessary evolution for the future of manufacturing.

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