Industrial automation is no longer optional—it’s the foundation for competitiveness and profitability. In this Supply Chain Byte, Lisa Anderson shares what manufacturers must consider when investing in automation in combination with artificial intelligence to boost efficiency, improve responsiveness and stay ahead in a rapidly changing marketplace.

Rockwell has committed to invest $2 billion over the next five years. Rockwell Automation, Inc. is one of the largest providers of industrial automation and digital transformation technologies. They plan to focus on three key areas:

• Expanding capacity: Rockwell plans to expand capacity in their Wisconsin and Ohio plants to increase productivity and output. With the manufacturing renaissance on the horizon, it is vital to be able to scale production. SIOP (Sales Inventory Operations Planning) processes are showing that a sharp increase in capacity is required in critical industries to meet demand.
• Digital & automation upgrades: Rockwell is investing in advanced technologies such as model predictive control, industrial artificial intelligence (AI), and advanced automation. These technologies will accelerate manufacturer’s ability to scale by allowing them to produce more with the same people with some companies enabling lights out production over weekends and/or night shifts.
• Workforce development: Nothing else will matter if workforce development doesn’t accompany these priorities. Rockwell plans to hire and upskill teams to work effectively with advanced automation systems. Talent must accompany advanced technologies. It isn’t people vs robots. Instead, it is people and robots. The same holds true for industrial automation and advanced technologies. 

Don’t pursue industrial automation for any reason other than bottom line results. In fact, if it won’t help you serve customers more successfully and profitably, re-think your priorities. Rockwell has already achieved significant results. In the last five quarters, Rockwell has achieved $360 million in cost savings. With that said, a critical advantage of industrial automation is a step change increase in production output. Companies that want to win and thrive in the next decade must take action to scale up. Industrial automation and smart factories are integral to manufacturing of the future.

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