Author: Jeff DeBellis
North Carolina has successfully positioned itself as a global leader in manufacturing. But as revealed in a new report from the NC Department of Commerce and NC State’s Manufacturing Extension Partnership (MEP), Best Practices for Growing Manufacturing in North Carolina, maintaining that edge in the Fourth Industrial Revolution is not without its challenges. Implementing cutting-edge "Industry 4.0" technologies like robotics, the internet of things (IoT), and data analytics won't be easy for employers. Here are five major challenges manufacturers will need to grapple with:
1. Huge Upfront Investments Required
Outfitting facilities with the latest smart factory technologies like autonomous robots, IoT sensor networks, cybersecurity systems and more requires significant upfront capital. The report identifies initiatives in other states, like innovation funds and accelerated depreciation schedules, that ease this financial burden.
2. Managing Operational Overhauls
Integrating advanced manufacturing technologies isn't just about buying equipment - it's an entire operational overhaul. From re-engineering processes to training staff on new systems, the implementation process will create enormous disruption and change management needs.
3. Evolving Workplace Cultures
The workforce needs for Industry 4.0 extend beyond technical skills. Manufacturers may need to rethink workplace policies, benefits, and cultures to attract and retain employees with specialized capabilities in areas like programming, data analytics and cybersecurity.
4. Displacement vs. Retraining Headaches
Automation will displace some workers while creating new roles. Deciding whether to retrain existing staff or hire new employees with cutting-edge skills will be an incredibly difficult decision laden with financial and cultural implications.
5. Significant Potential Payoffs
While daunting, if manufacturers can successfully navigate this transition, the payoffs could be transformative. The report highlights opportunities for dramatically increased productivity, efficiency, security, quality control, and global competitiveness.
The reality is that keeping up with Industry 4.0 will be immensely challenging for manufacturers from a financial, operational and managerial perspective. Careful planning and potential public-private support mechanisms will be critical to reap the benefits while mitigating risks to staff and business continuity.