Understanding the evolving needs of end customers should be a priority for any business. That’s why earlier this year we undertook a survey of 1,200 manufacturers in Europe and North America. We asked them how they use technology today and how they plan to invest in future. Here are my four key takeaways from the survey.
1. AI isn’t just hype
Though it may only have become a common topic of everyday conversation in the last two years, AI is already a business imperative in manufacturing. Our survey reveals that over half of manufacturers are now harnessing AI and machine learning to revolutionize their production processes.
This of course isn’t a complete surprise to us at Universal Robots. We are experiencing huge interest in physical AI because combining robotics with the power of machine learning and artificial intelligence can deliver incredible gains. The recent development in the application of AI-based technologies is very visible when looking at our extensive UR+ ecosystem of partners developing components, application kits and solutions for seamless integration with our cobots (collaborative robots).
We recently reached the milestone of having launched 500 products through the UR+ ecosystem and as the ecosystem keeps growing, a significant trend is the rapid growth in the number of applications and solutions based on AI technology.
And there is much more to come. Our survey shows that 48 percent of manufacturers are considering investing in AI and machine learning in 2024 and 2025.
2. The future of manufacturing is digital
Not very long ago there was widespread hesitancy towards connecting robots, and other production technologies, to the internet. It has been a question of both why – how do I benefit from being connected? – and then cybersecurity. The latter is still extremely important but as capabilities have risen, so has the level of safety. And as to the former, the why digitalize question, the answer has become much simpler: Because the possibilities it unfolds are incredible.
Using a digital twin of your cobot installation, for example, allows you to run endless simulations before you implement your cobot in real life, saving you both time, resources and money. And with the Industrial Internet of Things (IIOT) you can for example improve efficiency and reduce downtime through Overall Equipment Effectiveness (OEE) visualization and predictive maintenance.
In our survey, 47 percent of manufacturers say that they are already using digital technologies like IoT, cloud computing and digital twins. This number is bound to be significantly higher in just a few years, and it will enable manufacturers to shift towards high-volume, high-mix production and contribute to more resilient supply chains, competitive data utilization, and sustainability goals. And it will be an investment worthwhile making, as the reward will be higher quality, reduced downtime, better predictability, and improved cost optimization.
3. Quality is king
The survey shows us that manufacturers are embracing technology with a clear focus on meeting rising demand and developing both products and outputs. Improving product quality, increasing productivity and improving accuracy are the three main reasons for adopting new technologies like robotics, digitization and AI. Respectively 54, 50 and 49 percent of the respondents highlighted these three as reasons to implement new technologies.
There are of course also other reasons. 30 percent have done it to create better working conditions for workers, by for example having cobots taking over the dull, dirty and dangerous tasks humans really shouldn’t be doing in 2024 – like lifting heavy boxes onto pallets. 26 percent told us they invest in technology to become more sustainable. Luckily, by investing in a robot or other technologies you will often tick off several of these boxes.
Interestingly in our survey, only 11 and 12 percent note the difficulty of attracting the right workers as a driver for investing in new technologies – even though demographic projections are predicting declining workforces in many countries.
However, automation will inevitably play a key part in the attempts by businesses and governments to maintain a high level of productivity and competitiveness when populations and labor forces shrink and attracting the right workers becomes gradually harder. I expect this number to be much higher if we ask the same question again in 5 or 10 years.
4. ROI is #1 concern – but it’s not all about the money
Our survey clearly shows that the predominant barrier to adopting new technologies in manufacturing is a concern over Return on Investment (ROI). Manufacturers naturally want to prioritize investments that assure maximum efficiency and value. Here fast integration, reliability, ease of use, precision and flexibility are all important factors (all of this, by the way, is exactly what you get when investing in cobots).
While ROI takes the lead as a number one concern when considering technology investments (32 percent), it doesn’t stand alone, and other concerns are nearly as common. These include concerns about usability, a lack of in-house expertise, concerns over safety, and potential disruptions to existing operations. All these “roadblocks” are mentioned by around 20 percent of the correspondents.
So, how can technology providers address these concerns? In robotics, we need a two-pronged mission: We must keep pushing the frontiers for what tasks automation, digitization, and AI can solve, and at the same time we must create solutions that are even more intuitive and simple while providing the training needed to build confidence in the existing workforce. Ultimately, no matter how advanced robotics and AI become, the human element remains paramount.
Want to know more? Read about the survey and see detailed diagrams here.