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Concurrent Engineering Blog

How the Internet of Things is Changing Manufacturing

Posted by Emma Rudeck on 24-Jul-2014 13:36:00

Forces of TransformationTo Google is a verb, there is always a smartphone within a foot of you and now it’s nearly impossible to last a day without coming into contact with something connected in a smart way. The Internet of Things (IoT) is now a concept that is coming into practice – the idea that everyday objects like fridges have network connectivity. With this change comes a huge change in the manufacturing industry. According to a Mckinsey Global Insitute Report, by 2025 80-100% of manufacturing companies will be using IoT applications in their processes. There is a revolution coming and if you want to be on the right side, driving that change within your industry, read on. The effects of IoT can be hugely beneficial for your company, but there are also some things that will need considering.

How does IoT affect the manufacturing industry?

There are three main ways that the IoT is currently affecting manufacturing:

Process optimisation

The manufacturing process itself, from day to day, has been and will continue to be affected through IoT. Take for example, sensors placed on all equipment and machinery. They can provide real-time updates, communicating with each other to create a seamless system with less time spent waiting for elements to be completed. Moreover, the entire factory floor can be linked to the Internet, with all elements from the production line to the efficiency of staff, being analysed by a decision-making system. With more sensors and better process optimisation, there are more opportunities to improve the management of late-stage engineering changes, minimise errors and accelerate production overall

Economic impact

The McKinsey study estimates as much as a $2.3 trillion dollar impact per year in the manufacturing industry by 2025. With increasing demand for sensors and smart connectivity in manufactured products, the price will continue to fall making it more accessible and more popular. This is in turn means big returns for the manufacturing companies


One question that needs to be asked is on security. Are you ready for the implications of IoT to your security? With so many devices and IP addresses connected to your network, the same network, the potential for malware and other security issues is high, so your IT departments need to be ready to take on the demands of keeping your connected devices safe.


No doubt you’ll be having the IoT talk within your company soon, on whether you are prepared and able to make the necessary changes to keep up with the changing face of manufacturing. These are just some of the things that need consideration, but one thing is for sure: The Revolution is coming.

Want to hear more about the Forces driving a Revolution in Manufacturing? Download this eBook:


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