For years, manufacturers have touted the benefits of Industry 4.0, the threshold past which talent and technology form a symbiotic partnership to generate optimised outcomes. Crossing this threshold means achieving digitalisation, whose benefits include superior record keeping, minimal downtime, reduced waste, greener operations, smarter inventory management and organisational data proficiency.

But the undertaking is not without its challenges, which may explain why relatively few have actualised their digitalisation ambitions. Parsec Automation’s 2024 research found that just 32% of North American manufacturers have completed digitalisation initiatives.

Manufacturers have been making their way toward Industry 4.0 since the late 20th century, when Industry 3.0 – marked by the integration of computers into manufacturing processes – was widely achieved. Now, businesses are tasked with moving beyond the use of technology to embracing a true partnership where humans work side-by-side with machines to achieve unprecedented levels of efficiency. This is, of course, easier said than done, and it doesn’t happen overnight.

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Digitalisation isn’t a discrete task to be completed by checking a certain number of boxes; it’s a process that means different things to different companies. The baseline includes digital record keeping, connected systems, and data capture and contextualisation.

Half of North American manufacturers are in the thick of this process, building the frameworks that will open the door for automation and real-time data capture and analysis. Artificial intelligence (AI) has a big role to play in digitalisation, too, from predictive analytics to algorithmic production scheduling. Nearly two-thirds (65%) of manufacturers report being just “somewhat” prepared to adopt and leverage AI effectively.

To move the needle on AI, automation and other advanced technology, manufacturing leaders need to work closely with their teams to identify use cases, vet appropriate solutions and train workers. Getting this right is an absolute must – leaders should take their time as they guide their teams forward.

At the highest level, digitalisation requires obtaining, maintaining and aligning two key variables: People and technology. Manufacturing workers need to be trained and comfortable with whatever tools and technology are on the shop floor. Otherwise, the facility could experience delays, downtime, errors and even safety hazards. In the long term, a lack of training can stall manufacturers’ growth at an organisational level. For instance, 30% of manufacturers say a lack of skilled talent prevents them from adopting AI.

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As they pursue Industry 4.0, leaders will need to train existing teams and hire new, skilled talent. This requires continued, concerted efforts up and down the organisational chart and often comes with speed bumps. Indeed, 38% of respondents said training is a top staffing challenge, while 43% cited finding qualified candidates. Patience, persistence and proactive communication are key: Change management is never-ending.

Of course, researching and implementing the technology is no small feat either. Even if manufacturing leaders have executive buy-in and a team eager to learn, they’ll need to make countless impactful decisions about the future of their facility.

Developing a data-driven strategy is a great place to start and will help leaders ground their technology aspirations in real business needs. Plus, it will give businesses an anchor to fall back on when they meet challenges in their digitalisation endeavours.

Nearly one-third of manufacturers are already in Industry 4.0. This vanguard operates with higher efficiency than ever, experiencing the transformative benefits that come from connected platforms, IIoT-enabled equipment and digitalised operations. Of those that have completed their digital transformations, 83% rate their results as ‘good’ or ‘excellent.’

Every manufacturer to cross the 4.0 threshold can help set the pace for those that follow, leading by example and showcasing what it means to be digitalised. As more businesses make the leap, industry will become more efficient, sustainable and adaptable.

This is the viewpoint of Bill Rokos, CTO, Parsec Automation Corp. and it first appeared in Advanced Manufacturing