Smart Technologies Bridge Skills Shortage
Talk to any Australian manufacturer and they will tell you one of their biggest issues is staffing. And it is not just anecdotal. Research by Ai Group reveals Australian businesses are facing the tightest labour market since the 1970s. The Australian Government’s latest Jobs and Skills Priority List reveals significant shortages of production engineers, software engineers, industrial engineers, mechanical engineers, and electrical engineers. Smart manufacturing technologies have the potential to mitigate staffing issues as a smart factory can autonomously run entire production processes, maximising efficiency while reducing costs. So, what are these smart technologies and what benefits do they bring to the table? Let us find out further in this blog.
A Paradigm Shift
The growing trend of manufacturers and heavy steel fabrication companies embracing smart technologies is backed up by Rockwell Automation’s 2024 State of Smart Manufacturing Report (SoSM). The global study surveyed more than 1,500 manufacturers across 17 countries including 88 businesses in Australia and New Zealand (ANZ). Of the local respondents, 40% have implemented robotics at scale, 33% are piloting robotics implementations and another 23% are at the planning stage. The rising interest in robotics from local manufacturers is not surprising considering the lack of adequate human resources. A higher level of automation allows operations to continue and allows for growth. However, smart manufacturing is complex and could entail high upfront costs, so manufacturers should develop a long-term strategy and work with credible experienced partners.
Industrial Internet of Things (IIoT)
One of the key building blocks in the transition to greater automation is the rise of IIoT, which enables connected devices on the network to transfer data without human-to-human or human-to-computer interaction. In ANZ, 30% of the companies surveyed have already implemented IIoT at scale with 60% piloting solutions or working on implementation plans. This bodes well for the future of local manufacturing, IIoT can enhance efficiency and enable predictive maintenance and data-driven decision-making in industrial processes. ANZ has a 30% implementation rate, but that pales in comparison to China (51%), Canada (41%) and India (48%).
Smart Manufacturing
The National Institute of Standards and Technology defines smart manufacturing as fully integrated, collaborative manufacturing systems that respond in real time to meet changing demands and conditions in the factory, in the supply network and in customer needs. The SoSM Report reveals that 44% of ANZ survey respondents have already adopted this technology in full or in part. Smart manufacturing is also gaining attention at the highest levels of the Australian Government. In November 2023, the House Standing Committee on Industry, Science and Resources put forth the view that the notion that Australian-made products cannot compete with foreign alternatives is now outdated. With advanced manufacturing processes and techniques, particularly Industry 4.0 technologies as a manufacturing technology trend, Australian manufacturing have the potential to be globally competitive – including on cost.
Collaborative Robots
Seeking a productivity boost in the face of labour shortages, Australian manufacturers are turning to robots and more specifically, collaborative robots (cobots) which work alongside humans to perform intricate assembly processes or complex tasks such as heat induction bending services. The SoSM Report notes that 34% of ANZ survey respondents have already invested in cobots with another 42% planning to invest in the next 12 months. Australia is significantly ahead of Canada in this regard, which sits at 14% (invested) and 32% (planned).
Closing Words
Going by current numbers, the smart manufacturing ecosystem in Australia is poised to take a quantum leap in 2024 and beyond. In addition to the above technologies, generative AI has the potential to disrupt manufacturing processes and increase automation going forward. Hence, it is time for manufacturers to get “smart” – else they are likely to miss the next generation manufacturing bus!
