How Manufacturing Companies are Staying Ahead of the Curve

Industrial automation provider Rockwell Automation has released its annual State of Smart Manufacturing Report, a survey of 1,500+  manufacturers across 17 of the leading manufacturing countries. The report reveals a focus on harnessing new and emerging technologies to build resiliency, improve quality, maximize workforce potential, and drive sustainable growth. 

This comes on the heels of Cleo's latest report, which shows how investments in supply chain technology are paying dividends.

“A skilled workforce is the cornerstone of any successful manufacturing operation, but attracting, managing, and retaining workers is proving to be an ongoing challenge,” said Senior Vice President and Chief Technology Officer Cyril Perducat. “The survey found technology alone is not the answer. To remain competitive, manufacturers need to focus their staff on embracing new technology as a core part of their evolving organizational culture, creating a technology/worker partnership that drives their business forward.” 

Other findings from the survey include:

• AI ranks as the tool most likely to drive positive business outcomes. 83% of manufacturers expect to use generative AI (GenAI) in their operations in 2024. 
• 95% of manufacturers are using or evaluating smart manufacturing technology – up from 84% in 2023. 
• 94% of manufacturers plan to maintain or grow their workforce due to smart manufacturing technology adoption, with a heavy focus on repurposing workers to new roles and/or hiring additional staff.
• Change management is the leading workforce-related obstacle in 2024.
• For a second consecutive year, manufacturers cite “improved quality” as the ideal positive outcome of existing smart manufacturing technology. Additionally, “quality control” ranks as the top AI/Machine Learning use case in 2024. 
• For the first time, cybersecurity is listed as one of the top five external risks for manufacturers in 2024, ranking third overall.
• Energy management is the factor that matters most to manufacturers’ sustainability/ESG  programs. 

“The workforce of 2019 is not coming back,” said Allison Kuhn, principal analyst, LNS Research. “Developing a sustainable workforce strategy is critical to successfully navigate daunting manufacturing challenges. Leaders are winning the war for talent by embracing this new reality and with a laser focus  on three imperatives: 1) Total Employee Experience, 2) Servant Leadership, and 3) Connected Frontline Workforce (CFW) Applications.” 

For manufacturers, one of their biggest challenges remains combining people, processes, and technology to drive long-term business growth and resilience. According to the report, around one-third of manufacturing leaders cite “matching technology and talent to business needs” and “effectively managing people and resources” as the biggest obstacles their organizations face over the next year.  Manufacturers can overcome this challenge by selecting a partner with relevant industry expertise and experience who can provide tailored solutions and support in aligning technology and talent with business objectives.