Manufacturing’s Technology Lag Is Becoming a National Problem

The pandemic has been a wakeup call for American manufacturers. Amid rampant supply chain disruption, the need to re-shore production and compete on an international scale has become more important than ever. There’s a reason that one of President Biden’s first initiatives was a revitalized “Buy American” campaign.

Yet despite the vast potential of U.S. manufacturers, we won’t get there without first ratcheting up investment in Industry 4.0 technologies. Our competitors already have, with China leading the way on industrial robotics and Germany lapping the U.S. in manufacturing-related research, as just two examples.

Some big U.S. manufacturers have certainly gotten the memo on advanced technologies. But it’s still a problem for small and medium-sized enterprises (SMEs), many of whom, according to a recent MIT study, are stuck in a “low-wage, low-technology equilibrium.”

We’ve seen this play out in our own backyard: in Northeast Ohio, only 7% of firms use cobots effectively, only 10% make web-connected products, and only 18% are using automation profitably; in fact, investing in Industry 4.0 is at the bottom of the list for most of the region’s manufacturers.

Research that will soon be released by Team NEO, a business and economic development organization in Northeast Ohio, finds that while both the Northeast Ohio region and U.S. will see some recovery in manufacturing employment post-pandemic, it is not projected to fully recover to 2018 levels. However, with advances in technology, the sector’s total GDP is projected to grow 73% by 2025.

While there may be a significant cost and expertise barrier to undergoing technology transformation, especially for SMEs, the good news is that there are a number of practical, incremental steps manufacturers can take to begin their journeys. In MAGNET’s new blueprint for manufacturing in Northeast Ohio (MAGNET is a non-profit consulting group that collaborates with manufacturing CEOs, governments, community leaders, and educators) we outline how stakeholders can come together and make these transformations a reality.

Here’s how: https://www.industryweek.com/the-economy/competitiveness/article/21176307/manufacturings-technology-lag-is-becoming-a-national-problem?utm_source=IY%20IW%20Daily%20Headlines%20-%20Afternoon&utm_medium=email&utm_campaign=CPS210921084&o_eid=7018G2317967B8L&rdx.ident%5Bpull%5D=omeda%7C7018G2317967B8L&oly_enc_id=7018G2317967B8L