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There is no shortage of competition in a global market. As a manufacturer trying to get ahead of the pack, automation can help with problems like a limited skilled labor force, quality control issues and suboptimal throughput. But the high initial cost and extended implementation time can be deterrents.

Manufacturers are facing shrinking product lifecycles with frequently changing customer demands. As a result, they need agile production and flexible factory layouts that can easily be modified whenever needed.

As with any digital transformation process, the devil is in the details, and there are many potential pitfalls that can derail projects.

Most companies do not have a clear strategy for how they are applying IoT, Mark Weatherford, former Deputy Under Secretary for Cybersecurity at the Department of Homeland Security, said at an exclusive roundtable Smart Manufacturing convened recently in Chicago.

We all know the buzzwords circulating around digital data and the factory. You have heard them—Industry 4.0, smart factories, data analytics, and artificial intelligence (AI). The question we all have is how will this impact workers in the long term? What do these terms really mean? Nevertheless, both traditional software suppliers and makers of advanced manufacturing equipment are offering digital solutions.

The U.S. Department of Defense (DoD) is set to award $10 million in funding this year to the Digital Manufacturing and Design Innovation Institute (DMDII) here, UI Labs CEO Caralynn Nowinski Collens, said this morning. UI Labs is DMDII’s parent organization.

The bane of modern engineering is complexity. One promise of artificial intelligence and machine learning is helping engineers to use complex tools and harness vast data sets effectively.

For machine shops in a competitive global marketplace, keeping spindles running and making product is the only way to stay in business. Still, adding a new piece of equipment, even with the promise of improving the efficiency of your existing ones, may be a difficult sell to management.

It’s probably not a bad idea for smaller and mid-sized manufacturers (SMMs) to adopt an “us against them” attitude as they become aware of the prevalence of cyber-attacks in the digital age of the Industrial Internet of Things (IIoT) and Industry 4.0.

Most manufacturers have relied on third-party vendors to make parts that are then incorporated into the final product. From automakers sourcing stereos and aircraft makers contracting for jet engines to a small bakery ordering plastic bags or a woodshop buying nails, producers of all types have supplemented their internal capabilities through a painstakingly developed supply chain of external vendors.