Key takeaways
Profitability
Transformation
Supply chain
Technology
Workforce
Key challenges in smart manufacturing
As organisations adopt smart manufacturing, they face a range of technological, operational, and organisational challenges. At Enliven Systems, we explored the key issues organisations must address, including the acceleration of smart factory transformation and AI adoption, rising manufacturing costs, the need for resilient connected supply chains, and the transformation of digital skills.
Profitability under pressure
Rising labour, energy, and raw material costs are putting increasing pressure on manufacturers to improve profitability while remaining competitive. They face pressure from rising costs but can boost profitability through smart manufacturing, which improves productivity by 15–30% and reduces costs and energy use. Industrial AI has led to a 10–12% increase in gross profit and over €37 million in savings. Success relies on effective technology adoption and implementation.
Building a connected manufacturing ecosystem
Digital transformation is vital for manufacturers to stay competitive. 90% of manufacturers consider digital transformation a key competitive priority, with 59% already deploying smart manufacturing solutions and more than 50% expected to adopt Industrial IoT (IIoT). Connected ecosystems enhance decision-making and resilience, making delay a risk for those who wish to avoid falling behind.
Resilient supply chain
Supply chain resilience has become a critical priority as manufacturers build more connected and responsive operations. However, only 43% of manufacturing data is used effectively, limiting end-to-end visibility and slowing operational decision-making. Additionally, 46% of manufacturers experienced at least one cyber incident in the past year, highlighting the need for secure and integrated supply chain operations. By integrating IoT, ERP systems, and real-time analytics, manufacturers can improve visibility and respond quickly to disruptions.
Closing the technology readiness gap
AI is crucial for smart manufacturing, but many companies are not ready for large-scale adoption. While 98% of manufacturers are exploring AI, only 20% are fully prepared for deployment, highlighting a significant technology readiness gap. Meanwhile, 34% of manufacturing operations are already AI-augmented, with more than half expected to be AI-supported by 2030. To close this gap, manufacturers are investing in digital twins, edge computing, Industrial IoT, and AI-powered analytics to enable autonomous production, predictive maintenance, and real-time operational intelligence.
Upskilling the manufacturing workforce
The manufacturing industry is rapidly changing due to AI and automation, facing a shortage of nearly 4 million workers. As human–machine collaboration and AI-guided workflows become more common, manufacturers must reskill their workforce to operate AI-driven systems and ensure successful adoption of smart manufacturing technologies.
Next steps
Smart manufacturing delivers the greatest value when technology investments are aligned with clear business objectives and measurable outcomes. Start by identifying the operational challenges that have the biggest impact on your business, whether they involve production performance, digital transformation, supply chain visibility, AI adoption, or workforce capabilities. Prioritise integrated platforms that connect data, processes, and people to improve visibility, automate decision-making, and support scalable growth. Finally, establish strong governance, performance metrics, and continuous workforce development to ensure long-term success and maximise the return on your digital investments.
If you're looking to improve operational performance, accelerate digital transformation, or prepare your organisation for AI, book a free consultation with our experts.
Smart manufacturing should deliver measurable business value, not just new technology.
