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Current State of Manufacturing
The COVID-19 pandemic has underscored manufacturing’s role in providing products that are critical to health, safety, national security, and the continuity of multiple industries. It has also revealed the extent to which global supply chains are exposed to shocks and disruptions. All of this has occurred at a moment when new technologies, process innovations, and demand growth are reshaping the sector worldwide.
Smart manufacturing depends critically on information governance: rules (formal and informal) concerning the collection, flow, and analysis of information, often in digital form. To explore information governance issues in depth, the Manufacturing Policy Initiative at Indiana University hosted a roundtable event in Washington, DC, with executives from nearly 20 manufacturers. Policy experts from academia were asked to contribute to papers on specific topics including AI in manufacturing.
This report first defines digital manufacturing technologies. It then assesses the potential productivity and economic benefits smart manufacturing can produce. It next examines the extent of manufacturing digitalization in the U.S. It finds first that data on the topic is sporadic, incomplete, and at this point primarily survey-based. Second, it finds that, for all manufacturing digitalization’s promise, U.S. manufacturers have been particularly slow to adopt digital manufacturing practices.