How will Industry 4.0 impact U.S. manufacturing?

As advancing technology brings the manufacturing industry closer to the vision of a ‘smart factory,’ the future of U.S. manufacturing depends on how well industry leaders play the new cards in the deck: robotics, data, automation and 3D printing—without overlooking the value of human capital.

So far, the U.S. appears ready for change, earning a “well positioned for the future” nod from the World Economic Forum’s 2018 Future of Production assessment, which evaluated production structures in countries around the world. While human-free warehouses and factories are still a long way off, more sophisticated, tech-fueled automation is already becoming a standard feature of the nation’s industrial buildings.

These days, drones equipped with sensors can scan bar codes for inventory purposes, safely restock and pick merchandise on high shelves, and move small items quickly around the warehouse. Meanwhile, robotics and other technologies such as 3D printing, connected sensors and artificial intelligence are drastically transforming the way goods are manufactured.

“Industry 4.0 represents a clear opportunity for the U.S. manufacturing sector when you think about the skilled positions coming back into the economy,” says Aaron Ahlburn, Managing Director, Industrial & Logistics Research, JLL. “Most industry-relevant technology works best when paired with intelligent use, and the U.S. has a competitive advantage when it comes to skilled, tech-savvy labor.”

The factory of the future depends on today’s talent

The United States’ manufacturing sector is the second largest in the world, after China. According to WEF’s 2018 report, the U.S. “is globally renowned for its ability to innovate and is currently at the forefront of major developments surrounding the emerging technologies of the Fourth Industrial Revolution.”

This won’t be the first time the U.S. manufacturing industry has won in terms of innovation. This is, after all, the birthplace of the moving assembly line. And earlier automation technologies have already made this a country where only two in five employees are now directly engaged in production, according to a Congressional Research Service report.