The Drive Toward Digital Transformation in Manufacturing

While manufacturers have traditionally been hesitant to invest in their operations due to cost, a recent National Association of Manufacturers (NAM) survey of more than 500 manufacturers reveals that 65 percent plan to increase capital spending during the coming years. Where is the money going to go? Experts predict most manufacturers will look toward revamping their facilities to adapt to the demands of today's digital world. This adjustment, which many call the "fourth industrial revolution" or smart manufacturing, will move manufacturers from mass production to customized production via a digital supply network. The digital transformation, a melding of new technologies such as the internet of things (IoT), advanced robotics, artificial intelligence (AI), and 3D printing, is expected to generate more than $370 billion in net global value during the next four years. While digitization is helping to get more out of manufacturers' materials and machines, what are the driving forces behind transformation?