Insight on Manufacturing

w w w.in s i g h t o n m f g . c o m November 2020 • /INSIGHT ON MANUFACTURING | 27 INSIGHT FROM ... W. KENT LORENZ, board member, First Business Financial Services, Inc. Industry 4.0 trends affecting manufacturers The coronavirus pandemic continues to batter the state, and it's brought with it challenges for manufacturers ranging from supply chain disruptions to finding ways to implement new safety protocols in their plants. Amidst that adversity, another familiar issue remains: attracting and retaining talent. WMEP Manufacturing Solutions' most recent Economic Crisis/ COVID-19 Wisconsin Manufacturer Pulse Survey asked respondents to identify their No. 1 concern, and finding and keeping workers trailed only worries about declining sales. While 2020 has brought much upheaval, it's important for manufacturers to maintain their focus on the future and to address the inescapable demographic shift taking place. The workforce is aging, with a net loss of 500,000 workers per year projected for the next 10 years. Industry 4.0, which encompasses areas including big data, Internet of Things, augmented reality (AR), artificial intelligence (AI), robots and additive manufacturing, can help manufacturers address the skills gap and better position themselves in the long term. It's imperative for manufacturers to begin planning to adopt Industry 4.0 solutions now. A McKinsey and Company report states that for manufacturers to thrive in the next decade, being a "fast follower" isn't enough. Rather, it's vital for companies to become early adopters of Industry 4.0 solutions. Early adopters can reposition themselves competitively in a significant way, not only in terms of cost structure but also customer experience. To put the issue in stark contrast, consider that Todd McLees, founder of the Pendio Group, predicts that Wisconsin manufacturers could see a 10-year attrition rate of 40 percent, meaning approximately 3,700 manufacturers could cease to exist by 2030. Successfully adopting Industry 4.0 solutions will play a part in manufacturers' longevity. Let's take a closer look at four key areas of Industry 4.0 affecting manufacturers: robots in the factory, digital ecosystems, artificial intelligence and augmented reality. 1. Robots in the factory People often worry about robots taking their jobs, but the reality is that robots and cobots — collaborative robots that work alongside people — can take over tasks most workers don't want to do. Letting robots complete the dirty and dangerous jobs allows human workers to do work that's both more impactful and gratifying. The United States already lags behind other countries in adopting robots in plants. In 2016, the International Federation of Robotics (IFR) found the United States came in seventh in the world behind Korea, Singapore, Germany, Japan, Sweden and Denmark. Beyond that, the IFR found that China far outpaces the United States in adding industrial robots to plant floors. To prepare for a future with fewer workers, manufacturers must look at transitioning from human-centric processes to machine-based ones. This could include looking to robots to take on tasks such as loading/ unloading, end-of-line palletizing, parts inspection and measurement, welding, painting and sealing. Around 7,000 robots are in operation in Wisconsin today, and that number is projected to increase to more than 15,000 by 2030. To combat shrinking numbers of available workers, manufacturers will need them. 2. Digital ecosystems Implementing a digital ecosystem can help prevent disruptive and costly unexpected downtime. Factory floor connectivity can deliver real-time data, allowing for improved traceability and trackability along with the ability to provide data dashboards for customers and vendors. Solutions such as FANUC Corp.'s Zero Down Time Manufacturers could see a 10-year attrition rate of 40 percent, meaning approximately 3,700 manufacturers could cease to exist by 2030.

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