IoT and real-time location systems (RTLS) are imperative to survival in the manufacturing sector, according to a new study commissioned by Ubisense. More than two-thirds (70%) of senior executives working across aerospace, automotive and defence sectors believe that manufacturers which fail to adopt RTLS will be left behind by their competitors, and there is a consensus in the industry that the technology will be ubiquitous by 2028. The company’s new report also reveals a significant rise in the adoption of IoT in industrial manufacturing across Europe, including the UK, North America and Asia.
The findings on attitudes towards IoT in industrial manufacturing found that at least six-in-10 manufacturers (62%) are now using IoT in their assembly processes – an increase from 44% in 2021. Furthermore, more than two-fifths 43% of organisations are currently already utilising RTLS, and growing financial and operational pressures, due to the ongoing energy crisis and inflation, are driving manufacturers to unlock the benefits the technology can offer. While the perception may be that businesses are cautious to spend with a potential recession looming, more than three-quarters (76%) of manufacturers say that they are more likely to invest in IoT because of the current economic climate. Additionally, more than half of senior executives agree that RTLS could help ease the impact of some of their most pressing economic challenges, such as supply chain disruption (55%) and employment shortages (50%).
The report also reveals that despite the increased adoption of IoT, there are still barriers to manufacturers adopting RTLS. More than half believe that complexity of management (54%) and setup (52%) are stopping them from implementing location-based systems. However, this complexity could be down to how manufacturers perceive RTLS, as it is mentioned more by those that do not have plans to invest (65%) than those that have already adopted the technology (53%). Such hesitance is a concern as the study also found that many manufacturers are also financially suffering because they do not have real-time visibility of their operations. While three-in-five manufacturers have real-time visibility of production machinery (59%), parts or materials (59%), and products or work in progress (58%), the remaining 40% are struggling to see the complete picture. Furthermore, the visibility of human tasks in the manufacturing process is even more limited. In fact, only 42% of manufacturers say they have real-time visibility of one of their organisation’s key resources – their employees’ tasks.
Commenting on the findings, Ubisense Chief Marketing Officer Steven Manifold said, “Our research shows that IoT adoption in manufacturing and assembly processes continues to grow. However, it is clear that some manufacturers still have concerns around the adoption of RTLS despite the imperative to improve various efficiencies. For instance, we were concerned to learn that as many as six-in-ten organisations still do not have complete visibility of human-based manufacturing tasks.
“We understand why some manufacturers may have concerns about the management and setup of RTLS, but our research (and experience) shows that this perceived complexity is limited mostly to manufacturers who have yet to embrace RTLS and similar technologies. The organisations that have implemented RTLS are seeing the benefits of their investment and we encourage manufacturers to continue to explore location intelligence solutions in order to remain competitive in a rapidly changing global economy.”
The full report, Why embracing location-based services is imperative for survival, is available to download for free. For more information and to learn more about manufacturers’ attitudes towards IoT in industrial manufacturing, visit http://ubisense.com/latest-news/.
