Manufacturers Are Investing $150 Billion in New Technology. They Still Face 1 Major Obstacle
Research shows most manufacturers haven’t been able to integrate new technology on a massive scale. An expert explains why.
The manufacturing facility at Plug Power in Slingerlands, New York. Photo:
Pella, a manufacturer of windows and doors, has more 10,000 team members across 20 production facilities. Like many of its competitors, in recent years, it has turned to artificial intelligence to boost efficiency. Research indicates that the sector may spent $150 billion globally on AI by 2030.
However, a new report finds that even as adoption increases, manufacturers may not be fully prepared to integrate AI into their processes.
A recent survey from Expereo found that U.S
A recent survey from Expereo found that U.S. manufacturers do not believe their network is ready to support the next wave of AI, cloud, and digital initiatives. Eighty-sex percent of manufacturers said AI is currently being used in “pockets of the business” rather than across the organization, compared with 75 percent of U.S. businesses overall. Only 15 percent of manufacturers surveyed describe adoption as extensive, and none say AI has fundamentally transformed their operations.
Much of that may ultimately come down the multilayered nature of such processes.
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“Our products are made to order, which creates a high level of complexity,” Travis Turnbull, vice president and CIO of Pella, told Inc.
The privately held company was founded in 1925 by an Iowa-based couple. Today, the manufacturer generates between $2.1 billion and $4.7 billion in revenue.
“Our infrastructure has evolved alongside our use of AI, but that work is ongoing. We consider the underlying data, connectivity and ability to scale early in the process,” said Turnbull.
Source: www.inc.com
