Manufacturers across all industries share a common goal: delivering high-quality products quickly, easily, and cost-effectively. While this may seem straightforward, the rapid pace of technological innovation is leaving many manufacturers behind.
Automation and artificial intelligence (AI), however, are offering a lifeline.
In this blog post, we’ll take a closer look at how manufacturers are using automation to boost efficiency and reduce costs, and how you too can start automating your processes.
According to Deloitte's 2023 manufacturing industry outlook, 62% of businesses planned to focus on robotics and automation in the next 12 months. A recent survey also showed that 26% of manufacturers have already deployed AI-based technology, with another 50% in the development stage.
Common AI and automation technologies in manufacturing include:
Globally, the industrial automation market was valued at $185.42 billion in 2023 and is projected to reach $350.9 billion by 2031. This forecast may be conservative, considering that the McKinsey Global Institute estimates that more than 60% of all manufacturing activities can be automated with current technology and that the majority of manufacturers are already recognizing the value of these technologies:
Here are some of the ways leading manufacturers are leveraging these technologies to boost efficiency and reduce costs:
According to a report by the National Association of Manufacturers (NAM), 72% of surveyed manufacturers invest in transformative technologies like AI to reduce costs and improve operational efficiency. The reasons for this are obvious: automated systems can work continuously without breaks, increasing output and throughput while ensuring consistent product quality.
AI-powered predictive maintenance – implemented by over half of surveyed manufacturers – can prevent unplanned downtime by identifying potential equipment failures before they occur. According to McKinsey, predictive maintenance can reduce downtime by 30% to 50%, extend machine life by 20% to 40% and cut costs by up to 40%.
Advanced robotic systems are being deployed to enable greater precision, control, and versatility in manufacturing processes. This automation allows for less product waste, fewer human errors, and reduced energy consumption, all contributing to significant cost reductions.
According to The Boston Consulting Group, increased use of robotics will reduce average manufacturing labor costs in 2025 by 33% in South Korea and 18% to 25% in China, Germany, the U.S., and Japan.
It’s important to note that we are not talking about simply cutting jobs. Another report by McKinsey & Company estimates that about 60% of all occupations have at least 30% of constituent activities that could be automated. By automating these repetitive tasks, manufacturers will be able to focus on higher-value tasks that require human judgment and creativity.
Manufacturers are increasingly turning to machine vision systems powered by AI to enhance quality control. The NAM report indicates that quality operations is one of the top three areas where manufacturers are implementing AI, with nearly 80% of surveyed manufacturers having invested or planning to invest in vision systems for quality control and other applications.
These systems can inspect products with greater speed and accuracy than human workers, catching defects that may be missed by the human eye.
To improve workplace safety, manufacturers are investing in AI and machine vision systems to monitor production areas, and alert workers to approaching forklifts or other machinery outside their field of vision. Others are implementing AI-assisted ergonomic tools, such as exoskeletons, which can help prevent injuries and reduce physical strain on workers.
While the initial investment costs for automation may be prohibitive for many manufacturers, leveraging automation and AI is still possible. One effective way to do this is by collaborating with a manufacturing consultant.
Partnering with an experienced manufacturing consultant can greatly enhance your operations by streamlining processes and providing access to advanced manufacturing technologies. Kingstec, for example, has worked with leading manufacturers and facilities in Asia for over 40 years. By collaborating with Kingstec, you can gain access to a network of partners in one of the most technologically advanced regions for manufacturing.
China alone is the world’s leading robotics market, accounting for 36% of global robotics spending. The country's manufacturing sector is also at the forefront of AI applications and other emerging technologies, such as 5G telecommunications, big data, IoT, and electric vehicles. According to the Ministry of Industry and Information Technology, 110 Chinese factories have achieved international standards in intelligent manufacturing over the last decade, resulting in the establishment of over 2,000 high-level digital workshops and smart factories.
Kingstec is an all-in-one engineering, manufacturing, project management and logistics partner, with over 40 years of experience. Working with both start-ups and established brands, Kingstec employs a team of highly specialized, North American engineers, experienced project managers, and logistics professionals to support projects from ideation to market.
We can help you:
Contact Kingstec for a free consultation.
