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Why now is the perfect time to ‘get on’ with Industry 4.0

Why now is the perfect time to ‘get on’ with Industry 4.0

When the term ‘Industry 4.0’ was first coined in the early 2010s, much hype ensued around the concepts of automation, digitalisation and the Internet of Things. Twelve years on, you and I know and understand the benefits of Industry 4.0, but why do we still see evidence of many manufacturers being reticent about getting involved?

In my role as director for industrial transformation at IMCRC, I have spoken to many manufacturers, mostly small to medium enterprises (SMEs), through futuremap – IMCRC’s business diagnostic designed to help manufacturers demystify Industry 4.0 and assess their business maturity.

And through these conversations, it is clear manufacturers’ awareness of Industry 4.0 has grown. But despite this and the barriers to entry lowering, many are struggling to integrate enabling technologies into their businesses. In fact, when I look at the aggregate results of futuremap, one response stands out: only 24 per cent of manufacturers find the time to regularly discuss industry 4.0 as a leadership group.

It is time to acknowledge this is not a tenable position going forward. Technology is advancing so rapidly that we no longer have years to think about adoption. If we’re not doing it now, we risk being left behind.

However, it is fair to say the last few years have taught us many lessons. Lessons about embracing the unknown. Lessons about resilience. We have all become far more amenable to change. And I believe there is an opportunity for leadership to embrace this mindset and bring forward the shifts required in our manufacturing base.

Let’s talk about the reasons why it’s time to ‘get on’ with Industry 4.0.

Opportunities breed opportunities

Industry 4.0 is a force multiplier. Having successfully invested in a project portfolio of 71 research and development (R&D) collaborations, IMCRC has consistently seen opportunities breed opportunities – often in surprising forms.

In its infancy, Industry 4.0 was largely seen as a tool to lift productivity. And while this is still a critical benefit for many manufacturers, it also offers them the opportunity to invent or reinvent their offerings and strengthen their competitive position.

Take, for example, leading hydraulics and automation control solutions company HYDAC Australia. In 2021, HYDAC embarked on a 12-month collaboration with Deakin University and IMCRC to develop a cutting-edge virtual reality training environment. The technology was initially intended to support the maintenance and repair of hydraulic products.

However, with a robust demonstrator now available, the HYDAC team are finding companies are approaching them for support and ideas for their own implementation of virtual reality training. As a result, a new business stream is opening for HYDAC.

Our employees are demanding innovation

These days employees are likely to be more comfortable with innovative technology than leadership. Augmented and virtual reality have become native environments for many. We are seeing increasing investment in personal devices to support this trend, with the likes of Meta and Apple betting heavily on hardware to move this way of working into our daily lives.

Another example is smart phones, where individuals typically have 80 plus apps at their fingertips. Many of these apps are very tightly tailored to our needs and wants, training us to expect accurate, well presented and instantly accessible data. Employees will rightly expect our manufacturing performance data to also meet this benchmark, as will our customers and suppliers.

With digital technologies such as additive manufacturing, sensors and data analytics becoming more and more accessible at home, it is likely companies have employees who possess a skill base that can add value in the workplace.

HYDAC Australia collaborated with Deakin University to develop a virtual 3D training solution

We have seen this shift echoed in IMCRC’s futuremap workshops. When it comes to the adoption of Industry 4.0 technologies, many manufacturing SMEs are now saying the internal push from staff is greater than the external demand from customers.

By embracing the digital revolution, businesses can create a culture for their staff that feels relevant and supports society’s evolution. And at a time when recruitment is challenging, increasing retention by engaging with these latent skills can only be a good thing.

Our future is net zero

Perhaps the biggest incentive for action is the growing need for manufacturing to move towards net zero. With the Australian Government committing to a 43 per cent reduction in emissions by 2030, we will be expected to move quickly.

The risk here is that manufacturers consider challenges like net zero and Industry 4.0 adoption as competing in the context of a busy steady-state workload.

I would argue that the opportunity here is to bring the two issues together, with Industry 4.0 seen as a key enabler. For example, by optimising specific technology or adopting new software with energy-saving functionality, we can achieve reductions in energy consumption.

Similarly, newer and more innovative technology can reduce a business’ carbon footprint by replacing traditional manufacturing processes. Consider digital twins. By integrating digital twin technology, a manufacturer can more accurately test scenarios, improve product quality and control, and more efficiently balance resources across a complex supply chain.

If we think of the digital and clean energy transformations as being inextricably linked, we are more likely to achieve mutually beneficial outcomes and grow the impetus for getting on board. As a manufacturing SME, you are uniquely positioned to embrace the digital revolution due to your size, agility and entrepreneurial culture. And as a manufacturing leader, it’s on you to make it happen. Be the instigator of change. Understand your barriers to uptake and remove them.

Be bold. Be brave. And if you’re going to do Industry 4.0, do it now.

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