A revolution in manufacturing is firmly underway. Infineon, a German semiconductor manufacturer, is investing $105 million in the next five years in order to turn its Singapore plant into a smart factory. It took robots and 3D Printing to make Adidas bring back manufacturing to Germany. A leading fragrance maker in Switzerland ramped up capacity by a third in the past three years, all through addition of robots.
Here are the key findings from the research:
- Smart factories could add $500 billion to $1.5 trillion in value to the global economy in five years
- Manufacturers predict overall efficiency to grow annually over the next five years at 7 times the rate of growth since 1990
- We estimate that smart factories can nearly double operating profit and margin for an average automotive OEM manufacturer.
- 76% of manufacturers either have a smart factory initiative that is ongoing or are working on formulating it. And more than half of manufacturers (56%) have aligned $100 million or more towards smart factories.
- However, only 14% of companies are satisfied with their level of smart factory success. Only 6% of manufacturers are ‘Digital Masters’: at an advanced stage in digitizing production processes and with a strong foundation of vision, governance and employee skills.
- Digital Masters outpace all other categories in realizing the benefits of smart factories