Make or break: Manufacturing industry’s plans for IoT

WRITTEN BY: GEORGE

Manufacturers worldwide are increasing their investment in key technology areas to improve operations, product and service offerings, or keep up with their digitally savvy competitors.

But cybersecurity issues remain – one in four UK manufacturing companies reported they had been hit by a security issue last year, with individual losses of as much as £250,000.

According to an analysis by the McKinsey Global Institute, the installed base for the roughly US$50 billion advanced robotics industry used in the manufacturing industry is expected to grow six per cent per year for the next three years as companies are taking advantage of smarter, more flexible and cost-effective equipment to automate more of their activities. By 2030, Industry 4.0 applications are expected to account for almost half the total sales of 5G-connected IoT devices.

“The old image of manufacturing — which was around factories that were greasy and dirty — doesn’t exist anymore,” says Asutosh Padhi, Managing Partner for McKinsey in North America. “You walk into one of these companies and the places look clean, the machines are new, the people are working together in teams, the place is inviting. You get the sense that there is something happening that is much more modern and oriented around precision manufacturing, whether it’s using new materials, new technologies, or different types of equipment.