After years of stagnation, punctuated by a global health crisis, the manufacturing sector is poised for a boom—and Industry 4.0 technologies are leading the way.

While the COVID-19 pandemic exposed manufacturing supply chain vulnerabilities, it also demonstrated the power of the Fourth Industrial Revolution, as digital technologies played a critical role in the pandemic response for many companies. It was also a wake-up call to the world that resiliency and agility must have an equal seat at the table to efficiency. These realizations are now placing new pressures on manufacturers to innovate.

Emerging tech continues to transform the world of production—creating competitive advantage for companies and unlocking new value for industry, society and our environment. However, it is also creating profound uncertainty for small and medium-sized manufacturers (SMEs), as well as the global workforce.

Automation Alley, the Industry 4.0 knowledge center, exists to help companies of all sizes navigate the digital transformation. Our annual Technology in Industry Report, a collaboration between regional academic and industry leaders, provides a deep dive into smart technology trends, case studies that demonstrate technology adoption and ROI and action items designed to guide businesses to strategic success.

What we have learned from our collective 2021 research, and through conversations with SMEs, is that their roadblocks to Industry 4.0 adoption are extraordinarily similar. Companies consistently report 1) a lack of technology knowledge and expertise, 2) a lack of financial resources, 3) a lack of awareness of the need and/or relationship to the bottom line, and 4) a lack of visionary leadership and/or cultural appetite for adoption.

Though these roadblocks exist, and they present real challenges for SMEs, we have seen remarkable progress and change over the last several years when it comes to Industry 4.0 awareness and adoption. Here in Michigan, SMEs are much more aware today of Industry 4.0 and the benefits of digital transformation. In addition, SMEs are no longer intimidated by technology, and are becoming much more comfortable with technologies like 3D printing, collaborative robotics and artificial intelligence (to name a few); and more importantly, experimenting with ways these technologies can work together.

The journey ahead will not be smooth sailing, as we adjust to continued pandemic challenges. And as Industry 4.0 accelerates, what you know may or may not be valid going forward. Technology will change the business model in which you’ve always operated.

Success will be measured by how companies large and small commit to building a culture where people feel free to create change; where technology isn’t something we fear, but something we embrace. We applaud the early adopters. Will you be a fast follower?

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