Page 6 - AeM_April_2022

RESEARCH, ANALYSIS & TRENDS

Building a Smart Factory – Part 1: From

Automation to Autonomy

About ten years after entering the global and fulfil the work at the lower end of the supply chain,
manufacturing sector's consciousness, Industry while first-tier manufacturing nations stay at the higher
4.0 seems to have lost much of its novelty. Its end. The system has proven to be vulnerable that in a
principles, technologies, market drivers, and case of a choking recession cutting off market demand
national government policies have become due to an unpredictable event like COVID-19, manufac-
known quantities. Smart factories, the intelligent, turing verticals and employment will face a severe tum-
hyper connected production plants that lie at the ble.
centre of Industry 4.0, have become detailed Through all these difficulties, manufacturing activity
analysis and development objects. remains a critical part of developing and technologically

advanced economies. Manufacturing provides a path to
Analysts predict robust future growth for smart factories better incomes and living standards. In developed
and their contributions to global economic growth. With- economies, manufacturing still provides a vital source
in the next five years, the study claims that intelligent of competition and innovation. It is a significant source
factories will contribute up to $500 billion in value to the of exports, research and development, and productivity
worldwide economy.
growth. A good example is Germany, whose 47% of
Analysts now look to smart factories producing more GDP made up of manufacturing and its 27% of exports
goods and services at lower costs as the source of to the UK are vehicles.
these gains. Manufacturers predict that by 2022, smart
technologies will drive a sevenfold increase in annual The global manufacturing sector changes, bringing
efficiency gains. The report indicates that with smart challenges and opportunities to manufacturing busi-
technologies, some industries will nearly double operat- nesses of national and regional economies. However,
ing profits and margins. business leaders or policymakers should assume future
success based on old habits. So, what can one say
Whether one believes that the oversized benefits these about the future?
and other reports describe are believable, smart facto-
ries' global manufacturing growth is a real trend, one Manufacturing in the future
worth another look.
As nations mature economically and technologically,
manufacturing is part of essential shifts in national soci-
Big changes in the global manufacturing sec- eties. In a 2018 report, the McKinsey Global Institute
tor
clearly describes how manufacturing adds to the global
Global manufacturing operations have undergone tu- economy. Some of its key ideas include:
multuous times. Under the globalization, developing Manufacturing's changing role. In advanced econo-
economies joined the global manufacturing value chain
mies, manufacturing drives productivity, innovation, and
6 April 2022: Marketing Automation: AI, Big Data & Deep Learning