A combination of challenges including a dwindling workforce, heightened cybersecurity concerns and inflationary concerns have caused manufacturers to shift their investment plans to have a heavy focus on emerging technologies.
Rockwell Automation’s ninth annual State of Smart Manufacturing Report, released earlier this week, found that 95% of respondents are using or considering using smart manufacturing technology, up from 85% in 2023.
More than 1,500 manufacturers around the world contributed to the report, with about 13% of them headquartered in the U.S.
“Results show that AI (artificial intelligence) is core to technology strategies and roadmaps,” according to the report. “Adopters are seeing tangible results, with only Cloud/SaaS delivering more return on investment than GenAI and causal AI.”
Generative artificial intelligence (GenAI) quickly moved up the list of priorities for manufacturers over the last 12 months, with 83% of respondents saying they anticipate using GenAI in their operations this year. GenAI also ranked as the number one new area for planned technology investment in the next year for manufacturers.
When it comes to technology investments, cobots, autonomous mobile robots (AMRs), automated guided vehicles (AGVs) and wearables all ranked highly in new areas manufacturers are looking to spend money. About 81% of respondents plan to be using wearable technology by the end of the year. Overall, the report found that spending on technology increased 30% year over year.
For the first time in the nine years that the report has been compiled, cyber attacks were ranked among the top external risks for manufacturers. Cybersecurity is the number one skill employers are looking for this year.
The number one obstacle for manufactures continues to be inflation, compounded by rising energy costs.
“Prompted by inflationary pressures and rising energy costs, manufacturers are stepping up technology investment to counter risks,” according to the report.
For the second year in a row, manufacturers said a lack of skilled workers is the biggest reason they will struggle to outpace competition. Respondents once again cited plans to use new and emerging technologies to amplify their workforce and fill any skills gaps. Through increased smart manufacturing technology, 94% of respondents expect to hire more workers or shift current workers to different roles. Overall, respondents believe automation is crucial to their companies’ continued success.
The use of automation, smart manufacturing and AI/ML (machine learning) will increase over the next five years to drive business outcomes, according to the report. Continued investments in emerging technologies are expected to be coupled with investments in employee training and programs to accelerate successful adoption of the technology.
"At Microsoft, we see a future where intelligent factories powered by people using AI and Generative AI become the norm, not the exception," said
Gary Nafus, vice president of U.S. manufacturing for Microsoft. The company took part in this year’s survey. "Emerging technologies delivered through partnered ecosystems are helping to pave the way for sustainable, autonomous operations that redefine productivity. Imagine production lines optimized by data insights, robots collaborating seamlessly, and materials sourced responsibly. This isn't just a vision, it's a reality we're building together."
