Back in 2019, 86% of survey respondents said they believed smart factory initiatives would be the main driver of manufacturing competitiveness in the next 5 years. However, according to that same survey, only 51% were making or had made investments.

Fast-forward to today, and what’s changed? In a more recent survey, only about 7% of manufacturers said they have digitized their factory operations extensively. Roughly  53% said their factories and plants were still works in progress. In this blog, we’ll tackle why it’s difficult for many manufacturers to make progress, as well as what they stand to gain from their hard work. But first, the basics … 

What Is IoT for Manufacturing?

The concept is as simple as it sounds! The Internet of Things refers to anything that is “a thing” and also has a built-in network connection.

In the Industrial IoT (IIoT), the “things” are manufacturing equipment, vehicles, sensors … in essence, anything that contributes to production. In some cases, even the products themselves are part of the IIoT.

5 Different Areas That IoT Helps in Manufacturing

As you might expect, making it possible for a massive amount of network-connected things can open the door to a broad slate of practical applications. Here are the top five.

1. Utility Automation

As a starting point for this concept, think about those sensors that turn on the lights when you walk into a room or that turn on an air conditioner when the room rises to a certain temperature. 

If those types of sensors become integrated into the IIoT, they can send large amounts of data to a central location — like the number of people in a room and weather conditions. 

That data could allow a cognitive processing unit to make decisions on how to optimize things like lighting, heating, and electricity consumption overall. Employers will finally be able to end the fight over the office thermostat! This also has safety implications, such as the ability to help regulate maximum occupancy under the fire code.

2. Remote Machine Access

This probably seems obvious, but the ability to access and operate a machine remotely (or adjust its automated operation remotely) is incredibly convenient for mechanical engineers. 

With IIoT, engineers can access machines from several different plants in a single location, which can reduce or eliminate the need for costly and time-consuming cross-country travel.

3. Asset Tracking

As a starting point for this concept, think about the “Find My” iPhone app, only in this case, it’s “Find My Turbofan Jet Engine” or whatever else you’re tracking! 

If a part, machine, or vehicle can be integrated into the IIoT, it can be monitored using GPS tracking. Collecting this type of data has dozens of benefits, but one major example is supply chain optimization. 

For instance, asset tracking might reveal that certain parts are typically idling at a given location for a significant period of time. If that’s the case, managers can take note, find ways to expedite that step in the process, and optimize the supply chain.

4. Predictive Maintenance

Downtime can be one of the biggest profit-eaters in manufacturing.

When it comes to certain large, expensive pieces of equipment (think industrial centrifuges or heat exchangers), it doesn’t make sense for a manufacturer to have more than one. So if it goes down, the entire operation will bottleneck or grind to a halt.

However, if that equipment can transmit data on its performance, it could throw up red flags and effectively say, “Hey, I’m pretty tired, guys,” far before it ever breaks down. Engineers can then time and execute predictive maintenance accordingly.

This also opens the door for incredible customer service. If a car’s transmission or alternator is on its last leg, the manufacturer can alert the consumer before they end up stranded in a parking lot and waiting for a tow truck to arrive.

5. Logistics Management and Optimization

When thousands of smart devices of all shapes and sizes perpetually spew data at your company, analytics can become your MVP. The reason? If you can analyze data about which transportation route is the most fuel-efficient on average, you can cut costs.

If you can process mountains of data on your equipment and get to the bottom of why certain equipment is breaking down faster than others, you can extend the lifespan of your machinery and cut costs.

And if you can track human error rates in correlation with a litany of contributing factors … well, you get the point.

The data flowing in from IIoT devices can help businesses streamline their operations to a level that would never be possible otherwise.

But there’s a catch …

What Is the Top Challenge for Digital Transformation and IoT Adoption in Industrial Manufacturing?

The benefits of the IIoT are seemingly endless, but the fourth industrial revolution comes with one major Achilles heel: Anything hooked up to the internet is vulnerable to being hacked. 

Your office smart fridge probably wouldn’t be that much use to a hacker, but if someone were to gain control of your assembly line’s robotic arms, they could do a lot of damage. Every connected system can potentially create a new attack surface, and all of those vulnerabilities need to be addressed. By the way, that also includes networked printers.

Additional Challenges To Adopting IIoT Technology

Cybersecurity challenges aside, there are other, more practical reasons why IIoT enthusiasts still haven’t been able to smarten up their factories as quickly as they want to: 

• Older machinery and systems weren’t designed with connectivity in mind and would need to be replaced  
• Most factories aren’t set up to store the vast amounts of data that IIoT requires 
• Many factories don’t have the in-house IT talent needed to maintain IIoT systems
• Different systems and tools often struggle to communicate effectively with each other 
• IIoT systems represent a huge change in how factory work is performed 
• Maintaining reliable network coverage can be challenging in industrial environments 

Expert Insights on How To Implement IoT in Manufacturing

It’s very difficult to move a mountain when you can’t even take the first step. Scaling up an in-house IT team with no skill gaps is a challenge for almost every industry right now, and even if you can do that, you’ll likely find yourself constantly having to re-hire for the same position every year or two due to the IT talent shortage. 

But if you work with an IT provider, you can solve that problem very easily. And if you work with an IT provider that also has deep expertise in working with manufacturing clients, you can also knock a few more challenges off of your to-do list, like reliable network coverage, storing and securing data, and getting quick wins so you can get more stakeholders on board when more investments need to be made. 

Click the link below to see a recent case study that provides a good example of how an IT provider can start changing the game for a manufacturing client!