As the Race for Manufacturing Leadership Accelerates, How Do We Help SMMs Get Up to Speed With Robotics?

By Suzy Teele and Livia Rice, ARM Institute

Robotics adoption is the gap between what US manufacturers need and what they are actually doing. We’ve all read the reports: millions of manufacturing jobs are at risk of going unfilled in the coming years, with the National Association of Manufacturers projecting 2.1 million unfilled roles by 2030. Robotics and automation hold the key to augmenting that workforce gap. However, manufacturers of all sizes, and particularly small and medium sized manufacturers (SMMs), still struggle to justify implementing automation.

This struggle has profound impact. Specifically, the competitiveness of our SMMs affects the availability of consumer goods and military supplies. It also affects our ability to support critical infrastructure, and the economic prosperity of millions of workers.

Why SMMs Carry the Whole Supply Chain

SMMs are the backbone of our nation’s economy. More than 95 percent of all US manufacturing firms fall into the criteria of being an SMM. Notably, our nation’s large manufacturers rely heavily on these SMMs as suppliers and subcontractors, particularly in defense, aerospace, and automotive. SMMs also employ nearly 50 percent of all US manufacturing workers, representing millions of jobs.

Why the Timeline Changed

But why is action needed now? Reports about the workforce gap have been prevalent for more than 10 years. So far, we have seemingly skirted absolute disaster.

Currently, the rapid acceleration of AI has transformed the very nature of the race. Previously, the US was running a marathon, incrementally increasing investments in manufacturing. However, the race has evolved into a short course sprint. And we’re falling behind.

In fact, China continues to outpace the US on investment in manufacturing technologies. As a nation, China has deployed 5 times more industrial robots than the US and accounts for around 50 percent of the world’s industrial robots. Moreover, many of these robots are enabled with AI. As a result, they work faster and leverage data to make better decisions. In comparison, only 8.3 percent of US manufacturers are using robots and even fewer are using AI in factory settings.

If we could ignore the reports of ten years ago saying that we were moving towards a national manufacturing disaster, it’s become increasingly difficult in recent years. The pandemic refuted any idea that the US could rely on off-shore manufacturers. Furthermore, it showed what happens when the US cannot manufacture critical materials like personal protective equipment. For example, new conflicts have created more demand for military supplies for our warfighters. Manufacturers need to be able to keep pace with demand; robotics and automation are key parts of that equation.

Overall, having critical industries and manufacturing capabilities on-shore is critical for our national security. Therefore, we need a reliable, agile, and ready manufacturing ecosystem. That matters not just for responding to disasters, but for asserting leadership in manufacturing and building opportunities for US workers.

What Actually Blocks Robotics Adoption

So, what’s preventing manufacturers from deploying automation on their factory floors? The need is well-established and the business case seems sound. Why is there still hesitancy?

What 500 Organizations Taught Us About Robotics Adoption

The ARM (Advanced Robotics for Manufacturing) Institute is a national Manufacturing Innovation Institute, part of the Manufacturing USA network, and is dedicated to accelerating the use of robotics and physical AI in manufacturing both through technology innovations and workforce development. Since our inception in 2017, we have built a national consortium of over 500 organizations and thousands of robotics and AI experts. Together, they have talked to countless manufacturers about the struggle to adopt robotic solutions. Here’s what we’ve learned over the years and how we’re working to solve these challenges as a federally funded non-profit.

We often hear that cost is the number one issue preventing robotics adoption. However, our research shows that cost is typically number three. Let’s look at the top two.

Barrier One: Not Knowing What to Automate

The number one issue limiting robotics adoption is that manufacturers simply don’t know what should be automated. They often hear about automating the “Dirty D’s”, meaning dull, dirty, and dangerous tasks. However, that is too broad a simplification for SMMs with tight margins. It is far from the foundation needed for an actionable automation roadmap, let alone one a manufacturer will invest in.

This is where the ARM Institute and our consortium shines as SMMs need support moving beyond sales conversations with technology suppliers. Instead, they need trusted and objective partners with automation experience. Those partners should say how automation can help and, equally importantly, where it is not the right fit on a production line. Leveraging the full breadth of our consortium, we can often find solutions that may not be available or obvious to a single provider.

Barrier Two: Nobody to Run It

The second most widely cited issue limiting robotics adoption is a lack of skilled workforce needed to operate, repair, and maintain traditional robots, let alone AI-enabled robots. On one of our organization’s earliest visits to a manufacturer, we saw a robot sitting unused in a corner. The manufacturer explained that they bought the robot hoping to manufacture faster. However, reality quickly set in. They realized that they bought the robot in a vacuum, assuming that it would operate largely autonomously. For a time, the robot did just that – it took on one specific task.

But then the robot encountered a problem and needed maintenance, and the manufacturers didn’t have a worker on staff who had the skills required to fix it. Then the task it was designed for and their need for said task changed. It wasn’t easy to re-program the robot to work on something new. Ultimately, between maintenance issues, evolving needs, and no in-house expertise, it was easier to move the robot to the corner than to confront the failed project.

Why a Trained Workforce Comes First

Importantly, technology alone will not increase a manufacturer’s capacity. A trained workforce that understands both the intricacies of a shop’s operations and has robotics skills are critical to success. Notably, many manufacturers and workers do not realize how close they are to being automation-ready. Still, the adjustment requires investment, effort, and a mindset shift.

The ARM Institute’s free, publicly available resource RoboticsCareer.org makes upskilling easier. Manufacturers can identify training programs near them that teach the skills their workforce needs, and search a free national talent database when they need to hire.

However, these tools alone will not solve the workforce crisis. Workers need to view continuous learning as an opportunity rather than a tedious obligation. Additionally, employers need to support them through the change. Studies have shown that workers fear automation will take their jobs. However, once they start working with these technologies, that fear dissipates. Specifically, they view the technologies in context and see them as tools rather than replacement. Similarly, they see how these tools can cover gaps created when a team member retires.

Barrier Three: The Cost of Getting It Wrong

Finally, perceived risks associated with automation also limit deployment. Let’s go back to the example of the robot in the corner above.

The robot itself is only 25 percent of the total cost of integrating it to a production line. Not only was this failed automation project disheartening; it was also very costly. By contrast, manufacturers deal in tangibles. Theoretical impact will not help them manufacture faster or cheaper. In short, practical technology is the key.

What to Do Now

We’ve established the need for manufacturers to adopt robotics and AI solutions and the reasons why there’s hesitancy, but what can we do today to work towards a brighter future for US manufacturing and one where we’re leading the technology innovation race?

• Manufacturers: begin to explore the current capabilities of your workforce and what new skills they will need to support automation. Find trusted partners and resources near you to help you objectively evaluate automation.
• Workers: embrace continuous learning and view automation as a tool, not a replacement. Workers should explore the skills that manufacturers will need as they look to implement robotic solutions.
• Technology Providers: understand that manufacturers need easy to use, flexible practical innovation and build solutions with end-users in mind.

Finally, manufacturing leadership will not happen in a vacuum. Ultimately, it will require a concerted effort across the full ecosystem to realize our nation’s full manufacturing potential.

About the Authors

Suzy Teele is Chief Strategy Officer at the ARM Institute, where she drives strategy across programs, outreach, and partnerships. She helped launch the institute and has been instrumental in growing its consortium to more than 500 organizations.

Livia Rice is Senior Director of Communications at the ARM Institute, where she directs marketing, outreach, communications, and events. She joined a few months after the institute’s founding in 2017 and has been integral to building its brand and programs. She was named a Pittsburgh Business Times 30 Under 30 winner in 2023.