Abstract
In this chapter, the current state and future trends in smart manufacturing (SM) and its technologies are presented with the perspective of economic growth and evolution of policies and strategies that steer its growth. The long-term effect of the COVID-19 pandemic on manufacturing is investigated. As a result of the COVID-19 pandemic, a long-lasting effect on manufacturing is foreseen, particularly in the supply chain dependency. To overcome future supply chain disruptions, attention is expected to shift towards incorporating industrial and service robotics, additive manufacturing, and augmented and virtual reality. Additive manufacturing will continue to play an increased role in customized product manufacturing. More demand is expected in the long term of additive manufacturing to counter future supply chain interruption.
TopIntroduction
In 2011 the term “Industry 4.0” (Rüßmann, et al., 2015) (Erol, Schumacher, & Sihn, 2016) Came to define the 4th Generation of industry (Digitale Wirtschaft und Gesellschaft, n.d.) after the Hannover fair in Germany. In the years that follow, Germany and the European Union adopted policies and plans that rely on Smart Manufacturing (SM) technologies to increase their national manufacturing production. The Wall Street Journal calls it the “New Industrial Revolution”, and the Huffington Post called it a “bullet train” that “propels the manufacturers that climb on board” (Kennell, 2015).
However, before the adoption of policies and plans for “Industry 4.0” in Europe, in the year 2010, China surpassed the United States, for the first time in modern history, as the world’s largest manufacturer and it continues to widen its lead (see Table 1) (China Solidifies Its Position as the World’s Largest Manufacturer, 2015). For the past four decades, China adopted strict and fruitful industrial policies, that resulted in the successful transformation of China’s economy to a leading industrialized one.
The term “Intelligentization” was first introduced by the Chinese State Council in its National Artificial Intelligence Strategy (Webster, Creemers, Triolo, & Kania, 2017) translated as “Next Generation Artificial Intelligence Development Plan” to refer to the next generation of intelligent systems, in which decision making is a key capability of the AI machines.
Table 1. Top 10 countries that provide value-added manufacturing ranked by the percentage of the world’s manufacturing services provided, 2015 data
| Rank | Country | Percent | | Rank | Country | Percent |
| 1 | China | 23.2% | | 6 | Italy | 3.1% |
| 2 | United States | 17.2% | | 7 | France | 2.4% |
| 3 | Japan | 7.8% | | 8 | Russia | 2.4% |
| 4 | Germany | 7.3% | | 9 | Brazil | 2.3% |
| 5 | Korea | 6.3% | | 10 | United Kingdom | 2.1% |
Key Terms in this Chapter
Industrial Robot: A robot that is used in the manufacturing industry.
Automated Guided Vehicle: A mobile robotic system that uses guides of different forms for navigation such as floor line tracks, wires, or vision systems.
Smart Manufacturing: The United States Congress defines Smart Manufacturing as a set of advanced sensing, instrumentation, monitoring, controls, and process optimization technologies and practices that merge information and communication technologies with the manufacturing environment for the real-time management of energy, productivity, and costs across factories and companies.
Additive Manufacturing: A process by which an object is constructed from a three-dimensional model, in a layer-by-layer manner under computer control.
Intelligentization: A term that emerged in China to refer to the use of artificial intelligence with decision making capability.
Artificial Intelligence: A computerized system that has the ability to perceive its environment.
Augmented Reality: The enhancement of real objects by a computerized system that is accomplished by a set of sensory systems.