Changes in Manufacturing Due to the Cloud and New Technologies

Manufacturing technology plays a huge role in how the industry develops new ways to compete. In the contemporary global economy, small businesses now have a chance to make waves thanks to reduced prices for cloud computing programs. Manufacturers of all sizes can bring products to the market faster and with greater efficiency.

Cloud computing represents a way for firms to access real-time data all along the supply chain, from the actual process of making a product to the systems used for customer delivery. Instead of investing in new machines to manufacture the same products a company made 10 years ago, companies can share data from wireless sensors, devices and processes with any of its partners. A firm in Detroit can view data from a parts supplier in Shanghai to determine ways to improve delivery times, mechanical processes and output efficiency.

Before cloud-based systems, firms typically created their own in-house enterprise resource planning (ERP) software solutions. That meant hiring computer programmers and other IT professionals, purchasing computer hardware that's compatible with the system and somehow connecting it to the rest of the plant through Ethernet cables. Wireless communication and cloud computing programs downloaded from remote locations completely changed the traditional methods of gathering information.

Thanks to manufacturing technology, it no longer takes a lot of money to overhaul the data-gathering process. Computers simply need the right operating system and a way to communicate with wireless Internet connections. Instead of buying new computers throughout the plant, companies can use mobile cloud computing. Rather than buying new desktops for dozens of offices, companies can improve the software on current devices.

Based on multiple statistics, cloud computing benefits manufacturers. Firms that employ this type of ERP save as much as 54 percent due to reduced costs for maintenance, life cycle expenses and infrastructure improvements, according to Manufacturing Business Technology Magazine. Companies using mobile devices connected to cloud software increase efficiency by as much as 44 percent. The shared information helps make businesses run more smoothly and allows them to compete on a global scale.

Cloud computing can also create new dilemmas and challenges. Cyber security might become an issue as firms try to mitigate any hacks or loss of sensitive data. Workers must know how to operate cloud computing programs, which means entry-level employees may need special training or require certification before gaining access to them.

Cloud computing technology used to be too expensive for many small businesses to purchase. Now that cloud-based systems have gone mainstream, prices have come down, making this paradigm affordable for manufacturers of all sizes. There are no more excuses for not investing in the cloud, and companies who don't use such programs might lose money.

Cloud computing is here to stay and gives manufacturers the opportunity to improve their bottom line. The sooner companies invest in this type of strategy, the sooner they can increase profits.

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