There has never been a better time for small businesses entering into the manufacturing industry because the cost of efficiency inducing software and equipment is falling. For the first time, small job shops can compete with bigger manufacturing behemoths like GE, GM, Boeing, and Caterpillar, because they now have access to all of the tools that can make them competitive and place them on equal footing. When small companies realize they can employ automation assets, that can be a game changer.
Take Industrial Robotics for example. It used to be the only place you would see these assembling automatons was in the semiconductor industry, where the product is too small for human hands, or on the major production floors in automobile assembly plants. However, like the cost of a plethora of manufacturing technology, robotics are becoming affordable for small job shops.
“What we’re witnessing is that economically, in certain industries, it is now cheaper to use robots than humans,” said Hal Sirkin, a senior partner at Boston Consulting Group (BCG).
Manufacturers are bringing in robots for repetitive tasks and freeing people up for more creative and adaptable work.
BCG found that global industrial robots sales leaped 23 percent last year, and deliveries could double to 400,000 a year by 2018.
According to a report in Barron’s, the cost savings for a shop floor robot can be substantial.
“A typical $250,000 installation, including training and parts, can pay for itself in two years in reduced payroll costs and increased productivity. Seven or eight years in, the cumulative cash flow gained can reach $1.5 million. Once the upfront costs are paid, medium-size robots can cost just 50 cents an hour to operate, and large robots, $1,” says the report.
Data Analytics
Robotics is one way for small manufacturers to compete, data analytics is another.
How can you manage what you don’t measure? Manufacturers that want to remain competitive need to collect analyze and make sense of the data they collect in order to gain insight and make intelligent decisions. However, you need the right technology in order to analyze the data. We dealt with the issue of data analytics some years back.
All of these technology enhancements can launch a small manufacturer on the road to success.
Augmented Reality, 3-D Printing, Nanotechnology, The Internet of Things (IoT) are other areas worthy of exploration in the quest to stay ahead of your competitors.