In the United States, over 98% of manufacturing companies are classified as small and medium manufacturers (SMMs) and play a vital role in supporting local economies. However, these companies often struggle with a multitude of challenges that can impede their growth and success. Among these challenges are a scarcity of skilled labor, tight profit margins, limited knowledge of automation technologies and obstacles to efficient scaling. As a result, many SMMs find themselves relying on outdated, manual processes that are both time-intensive and prone to errors, ultimately compromising their ability to compete and expand in the market.
Automation has long been viewed as a complex and cost-prohibitive solution for SMMs, but the emergence of AI-powered solutions is changing the game. While automation in manufacturing reduces the need for manual labor in repetitive and hazardous tasks, it also creates new roles for humans in overseeing, managing and improving automated systems. Digital technologies provide the tools and data needed to optimize and automate production, while connected workers bring the human element of oversight, decision-making, adaptability, maintenance and troubleshooting, ensuring that these systems function effectively and efficiently.
Connected worker platforms built on AI take this a step further in delivering tangible ROI. By augmenting workers with personalized training and on-the-job guidance, providing real-time feedback, conducting data-driven performance evaluations and continuously identifying training needs, these platforms can ensure safety and operational efficiency and compliance in highly automated production lines.
Connected worker technology harnesses the immense potential of manufacturing data, which, according to McKinsey Global Institute, amounts to over 1.9 petabytes annually, making manufacturing the single most data-prolific industry. By leveraging data generated by their operations, manufacturers can uncover valuable insights to optimize processes, enhance efficiency, and drive innovation. One of the key areas where this data-driven approach proves invaluable is in supporting employee development.
These AI-powered platforms utilize collected data to analyze areas where employees struggle and automatically prescribe personalized, real-time guidance, including additional practice content. These platforms refer employees to relevant subject matter experts, manual references or even create simulations and scenarios to build specific skills. This targeted approach improves individual skill sets while fostering a culture of continuous learning and growth, leading to increased employee satisfaction and retention rates.
Beyond one-on-one digital coaching, AI enables the rapid dissemination of new skills and knowledge across an entire frontline workforce from a central source. HR managers and training teams can create master training content, which the AI platform then strategically tailors and delivers to thousands of workers based on their roles, responsibilities, and proficiency levels. This centralized approach ensures that policy updates, process changes, and equipment rollouts can be quickly and safely implemented across the organization.
The latest connected worker platforms are developed with the unique needs and constraints of SMMs in mind. Programs are tailored to each workforce and include low-code/no-code aspects and usability designed to be adopted easily by frontline workers, enabling manufacturers to get automated systems up and running in a matter of days or weeks rather than months or years. This accessibility means that even companies with minimal technical expertise and infrastructure can realize transformative improvements in capacity, quality, costs and customer service.
Automation, augmentation and connectivity play a crucial role in addressing the skilled labor shortage that plagues SMMs, especially as they face the challenges of an aging workforce and the loss of valuable tribal knowledge. According to the latest census data, nearly one-fourth of the U.S. manufacturing workforce is age 55 or older, and as these experienced workers retire, companies struggle to fill open positions. In fact, nearly 9 in 10 (89%) of manufacturers report being unable to find the skilled talent they need.
AI-powered connected worker technology offers a solution by capturing and digitizing the knowledge of senior employees and turning it into a shareable digital corporate asset. Connected worker platforms deliver personalized work instructions and real-time guidance to new workforce members, allowing them to capitalize on the digitized tribal knowledge base and experience of senior colleagues. This not only helps to close the skills gap, but also allows SMMs to better leverage their skilled workers’ expertise, freeing them up to focus on complex activities that require experience.
The combination of refocusing talent on fulfilling work and improving the work environment delivers two benefits in one. Automating repetitive work maximizes the productivity of existing staff, while also expanding the pool of potential talent, enabling SMMs to utilize their skilled workforce more effectively and future-proof their operations. As the manufacturing industry continues to evolve, SMMs that embrace AI-driven connected workforce solutions are better positioned to navigate demographic shifts, labor shortages, and the need for continuous improvement, ultimately driving their success in an increasingly competitive landscape.
