Economic Analysis of Technology Infrastructure Needs for Advanced Manufacturing: Smart Manufacturing
Smart manufacturing involves the integration of cyber and physical systems, which can enable innovative production processes and new product systems. However, industry faces barriers to the adoption of all but the simplest of smart manufacturing technologies. Enhancements in the technology infrastructure supporting smart manufacturing are needed to develop next-generation smart manufacturing technologies.
Technology infrastructure like standards and technology platforms provides the necessary underpinning for advances in smart manufacturing. Meeting critical needs in technology infrastructure can drive product and process improvements that are only in the conceptual stages today. Such improvements will lower the cost and increase the benefits from adopting existing and future smart technologies.
Economic impacts associated with meeting technology infrastructure needs for smart manufacturing could approach $60 billion per year. This represents, on average, a 3% reduction in the shop floor cost of production. The estimate is likely to be conservative because it does not capture several hard-to-measure benefits, such as improved product quality and accelerated market transformation.