by Gary Mintchell | May 31, 2019 | Automation, Commentary, News, Technology
The popular saying holds that the future is here just unevenly distributed. According to a survey released by PWC and The Manufacturing Institute, that thought is certainly true about the Fourth Industrial Revolution (which PwC labels 4IR but many others label Industry 4.0). This research confirms my observations that many manufacturers have projects at a variety of stages, while many others have adopted a wait-and-see attitude.
The report notes that fourth industrial revolution has been met with both enthusiasm and fence-sitting. While sentiments and experiences have been mixed, most business leaders are now approaching 4IR with a sense of measured optimism. Indeed, larger systemic changes are underway, including building pervasive digital operations that connect assets, developing connected products and managing new, real-time digital ties to customers via those products.
While manufacturers recognize the potential value of advanced technologies and digital innovation—particularly robotics, the Industrial Internet of Things (IIoT), cloud computing, advanced analytics, 3D printing, and virtual and augmented reality—they are still deliberating how and where to invest and balancing the hype with their own level of preparedness. Meanwhile, they’re also well aware of the significant changes 4IR will bring to a new manufacturing workforce—that is, one that is increasingly symbiotic and increasingly beneficial for many workers and manufacturers alike.
This narrative is reflected in a new survey of US-based manufacturers carried out by PwC and The Manufacturing Institute, the workforce and thought leadership arm of the National Association of Manufacturers. We see a definitive—and, indeed, inevitable—shift to 4IR as companies seek to integrate new technologies into their operations, supply chain, and product portfolio. At the same time, they acknowledge that scaling, justifying 4IR investments, and dealing with uncertainty surrounding use cases and applications usher in a new set of challenges.
Some key survey findings include:
• While the sector as a whole is making assertive forays into 4IR, many manufacturers still inhabit the awareness and pilot phases. Nearly half of manufacturers surveyed reported that they are in the early stages of a smart factory transition (awareness, experimental, and early adoption phases).
• Manufacturers do expect the transition to accelerate in the coming years—73% are planning to increase their investment in smart factory technology over the next year.
• While we see a number of fence-sitters, the bulk of manufacturers are indeed prioritizing 4IR, the digital ecosystem, and emerging technologies. 31% report that adopting an IoT strategy in their operations is “extremely critical” while 40% report that it’s “moderately critical.”
• About 70% of manufacturers say the biggest impacts of robotics on the workforce in the next five years will be an increased need for talent to manage in a more automated, flexible production environment and the opening of new jobs to engineer robotics and their operating systems.
…While adopters have identified clear signs of success. Though most manufacturers are still climbing the 4IR adoption curve—albeit at different speeds—those that have made progress are reporting a modicum of performance boosts measured by productivity gains, reduced labor costs, new revenue streams from IoT-connected products and services, as well as improved workforce retention and worker safety. Those that have effectively defined their use cases with a focus on outcomes rather than technology are seeing early wins, and are looking for ways to generate even more value.
The Takeaway
Manufacturers are seeking to balance 4IR hype and reality. And most acknowledge that sitting back and waiting for the inevitable may not be an option.
The road may be longer than the hype would have companies believe, but preparing for and embracing change is a muscle many of today’s manufacturers are ready to flex. Those that can build on their ad hoc pilots and prioritize investments and strategies with their long-term desired business outcomes will be better positioned to create lasting value for their organization.
by Gary Mintchell | Oct 10, 2016 | Automation
Last Friday, October 7, was National Manufacturing Day. Pointing toward that recognition, I participated in a Twitter Chat with PwC (Bob McCutcheon) and The Manufacturing Institute (Jennifer McNelly). I have participated on several of these. It’s pretty interesting. You can search #MFGTalent on Twitter and see the thread.
That same week, Moira Gunn interviewed Dan Mote, president of the National Academy of Engineering, on her NPR radio show TechNation Radio. You can find the podcast on iTunes or other podcatchers.
During the interview, Mote pointed out, “The key to engineering is being creative, not necessarily the math. You must care about solutions.”
I’ve heard it said that engineers are problem solvers. Most of the math I have studied was only partially about manipulating symbols. It was more about logical thinking and solving problems. For an engineer, math is a tool. Logic is life.
Twitter Chat
Here is a transcript of part of the chat we had to give you a flavor. It gets more interesting as people share links and facts.
Gary Mintchell @garymintchell Welcome to Tweet Chat concerning manufacturing talent. Please chime in. Now for the first question. Q1 Where do you see a manufacturing skills shortage? Or, would you argue that there is none? #MFGTalent #MFGDay16
Bob McCutcheon @MccutcheonBob A1 As opposed to a skills shortage, we see that there is currently a shift in skillset in the manufacturing workforce #MFGTalent
Jennifer McNelly @Jmcnellynam A1 There is a shortage w/ production workers & high-skill employees. 2/3 see talent shortage worsening in next 3 years. #MFGTalent #MFGDay16
TheMfgInstitute @TheMfgInstitute A1 By 2025, 3 million #mfg jobs will need to be filled and 2 million will go unfilled due to skills gap. #MFGTalent #MFGDay16
Bob McCutcheon @MccutcheonBob A1 Factories are getting smarter and the reality is, the next gen of the manufacturing workforce needs to keep up. #MFGTalent
Bob McCutcheon @MccutcheonBob A1 In fact, high percentage of manufacturers are embracing measures to grow & train a workforce that can keep pace with new tech #MFGTalent
Steve Minter @sgminterIW Do estimates of mfg job shortages account for technology changes? #mfgtalent
Jennifer McNelly @Jmcnellynam .@sgminterIW More than 1/3 of manufacturers said that investing in advanced technology will create jobs. #MFGTalent #MFGDay16
Bob McCutcheon @MccutcheonBob Bob McCutcheon Retweeted Steve Minter Industry 4.0 and tech advances are creating a shift in skillset, meaning the type of jobs manufacturers need will change #MFGTalent
Gary Mintchell @garymintchell Following up, Q2 is this just numerical change in jobs or a qualitative change? #MFGTalent
Bob McCutcheon @MccutcheonBob A2 It’s a qualitative change as advanced technology is changing job requirements and descriptions #MFGTalent #MFGDAY16
TheMfgInstitute @TheMfgInstitute A2 Qualitative change! Manufacturers will need skilled workers for advanced manufacturing technologies. #MFGTalent #MFGday16
Shannon Schuyler @ShannonSchuyler We all must work together to create education and training opportunities beyond the classroom for workers to retool their skills #MFGTalent
Jennifer McNelly @Jmcnellynam A2 There will be a change in the type of jobs – high-tech, innovative, and computerized. #MFGTalent #MFGDAY16
Jennifer McNelly @Jmcnellynam .@sgminterIW We need strong public-private partnership. Efforts like WIOA help advance collaboration #certification #Mfgtalent #MFGDay16
Bob McCutcheon @MccutcheonBob We need continued investment in STEM & training development programs in local communities – what are your thoughts @sgminterIW? #MFGTalent
Mike Dillon @mikedillonsf Worth noting – Diverse companies outcompete those lacking diversity & they make better decisions. Promote #workforce #diversity #MFGTalent
In reply to Bob McCutcheon Steve Minter @sgminterIW Most successful co’s I’ve seen taking initiative and forging strong ties w/ local schools, community colleges, etc @MccutcheonBob #MFGTalent
Bob McCutcheon @MccutcheonBob Q3 The focus will be put on jobs tied to #Industry40, with skills based on STEM
In reply to Bob McCutcheon Gary Mintchell @garymintchell @MccutcheonBob Bob, STEM knowledge is essential, but I think we miss the mark if it’s not combined with art, music, literature. #MFGTalent
Gary Mintchell @garymintchell Building on Bob and Steve, Q6, how can mfrs attract these STEM students?
Jennifer McNelly @Jmcnellynam A6 Offer work-based learning like internships & apprenticeships and engage young employees as ambassadors. #MFGTalent #MFGDay16
TheMfgInstitute @TheMfgInstitute A6 Showcase the diverse roles manufacturing can offer! There’s a place for everyone in #mfg. #MFGTalent #MFGDAY16
Bob McCutcheon @MccutcheonBob A6 Having a strong relationship w/ educational institutions / universities to introduce the many facets of mfg will be key #MFGtalent
Bob McCutcheon @MccutcheonBob A6 Manufacturers can recruit STEM students directly from graduation, attend job fairs and provide well-crafted internships #MFGTalent
Jennifer McNelly @Jmcnellynam A6 Check out this Ambassador toolkit to help engage early career leaders @TheMfgInstitute #Mfgtalent #MFGDay16 http://ow.ly/yKld304QKDF
Steve Minter @sgminterIW A6 Manufacturers should also pay attention to onboarding and early career development #mfgtalent
Gary Mintchell @garymintchell As we wrap up, what excites you about the future of manufacturing, technology, and new talent? #MFGTalent
Jennifer McNelly @Jmcnellynam A career in modern #mfg means great pay, challenging opportunities, the ability to lead and learn for a lifetime. #MFGTalent #MFGDay16
In reply to Gary Mintchell
Bob McCutcheon @MccutcheonBob @garymintchell The new, exciting products that our manufacturing floors could produce with the help of tech and talent #MFGTalent
TheMfgInstitute @TheMfgInstitute The future of #manufacturing holds the opportunity to change the world with innovative products! #MFGTalent #MFGDay16
And that seemed to be the best summary. Let’s go change the world.
by Gary Mintchell | Jun 16, 2016 | Leadership, News, Workforce
Here is another one of those cool PwC research reports regarding manufacturing workforce. As always when talking about the present and future workforce, there is good news, bad news, and idle speculation.
We must remember that many of us are filling roles that didn’t exist ten years ago. How many jobs will exist in ten years that we can’t even imagine!
Executives’ Split Opinions on Manufacturing Workforce
PwC, along with the Manufacturing Institute, surveyed 120 US manufacturers, and found that many are still split on the issue of talent shortage – 31% of manufactures believe there is no manufacturing skills shortage now, but there will be in 3 years, while 29% believe there is one and it will only get worse.
Other stats surveyed and topics discussed in the report include:
- 75% of factory floor jobs (R&D, engineering, prototype design) are being filled by those with post-second school education
- 74% of manufacturers are training in-house to raise employee advanced manufacturing skills, with 40% recruiting local STEM students
- While millennials are of focus, what about Gen Z?
- Can manufacturers attract the gaming generation using virtual reality as a draw?
- Wild cards – the maker generation and the gig economy, & the rise of the freelance class
Upskilling manufacturing: How technology is disrupting America’s industrial labor force placed special emphasis on how advanced manufacturing technologies are impacting workforce dynamics. “What we found is that while there is indeed some jitteriness over skills gaps, manufacturers are working to close those gaps. But we’re still in the early stages.”
- Skills shortages are not uniformly felt today: 33% of manufacturers say they have no or only a little difficulty in hiring talent to exploit advanced manufacturing technologies, while 44% have ‘moderate difficulty.’
- The worry is that it will worsen: 31% of manufacturers see no manufacturing workforce skills shortage now but that there will be one in the next three years; 26% say it’s already peaked and is behind us; and 29% said it exists and will only worsen in the next three years.
- The most common strategy to upskill employees in advanced manufacturing is to train in-house, followed by recruiting local STEM students and offering outside vocational training.
- Robots are not stealing manufacturing jobs: 37% believe that the adoption of advanced manufacturing technologies will result in their hiring additional employees; 45% said it will have no impact on hiring; and 17% said it will result in hiring fewer employees.
- But advanced tech is changing job requirements and descriptions: Nearly three-quarters of non factory floor manufacturing jobs are given to candidates with a four year or advanced degree.
Click bait and People As An Asset
I wonder how much of the worry is caused by idle speculation from the press searching for page views? Bad news hyped is as good a formula as “10 ways to attract the opposite sex” for getting clicks to your site. The fact that so many are taking immediate steps to “upskill” their workforce is gratifying.
Too often we forget that people are the most important asset. They come not only with two hands, but they also come with a brain. The more we encourage them to develop and use that brainpower, the more successful our enterprise will be.
by Gary Mintchell | Feb 24, 2015 | Automation, Internet of Things, Networking, Operations Management, Technology
Are you sick of hearing about the Internet of Things, yet? I hope not. That’s the big topic in industrial/manufacturing circles these days, and I doubt that it fades soon.
I think there is a paradox going down here, though. In many respects we already have connected plants. Automation has been so well accepted, that it would be hard to find a facility either manufacturing or production that has no automation. And automation requires instrumentation, networking, and data analysis.
Even considering IP–as in Internet Protocol–as a core of Internet of Things, the adoption of Ethernet-based networks such as EtherNet/IP and Profinet continues to grow significantly.
One wonders, then, what manufacturing executives think of the whole idea and where adoption ranks in their priorities.
Robert McCutcheon, Partner with PwC and US Industrial Products Leader, led a study with PwC and The Manufacturing Institute. The facts and conclusions are included in The Internet of Things: what it means for US manufacturing.
McCutcheon followed up with a blog post where he summarized the findings.
Setting the table for the discussion, he notes, “According to one estimate, the installed base for Internet-connected devices already exceeded $14 billion by early 2015, and is forecast to boom to nearly $50 billion by 2020. We are living in an era of deep data inter-connectivity.”
Further, he says, “Connected devices and new data flows are already making impressive headway in the manufacturing sector, and we expect to see this trend accelerate. In fact, another estimate shows that over the next decade, manufacturers could stand to capture about $4 trillion of value from the IoT through increased revenues and lower costs.”
With this potential value potential, what are executives thinking? Here is his summary.
“This is what we learned:
- Smart sensors are gaining traction – nearly 40% of U.S. manufacturers are collecting and using data generated by smart sensors to enhance their manufacturing and operating processes
- Not all think IoT strategy is critical — about 30% say that it’s “slightly important” or “not important at all” to adopt IoT strategy in their operations
- Focus is on manufacturing plants — one in three manufacturers use data-driven technology in the manufacturing plant only, with about one in four deploying it in their plant and warehouse”
The idea is data-driven manufacturing. Many are competing to find the killer app for this.
The idea is data-driven manufacturing. Many are competing to find the killer app for this. Industrie 4.0 advocates describe a digital factory that mirrors the physical factory where engineers and executives can fine tune the process from design to ship. Smart Manufacturing envisions a platform where apps can be built upon which will provide benefits of enhanced workflow.
Even Lean (which is seldom discussed lately, but remains the best route to manufacturing effectiveness) needs data to both discover problem areas and provide feedback about the success of the project.
Where do you stand on the IoT spectrum?
