For all of the complex engineering accomplishments, technical advancements, and envelope-pushing innovations they’re capable of, OEMs aren’t immune to some of the industry’s most common challenges. From staffing struggles and compliance issues to missed deadlines due to downtime, however, industrial automation solutions can help OEMs overcome productivity obstacles. In light of near-limitless opportunities and the market’s driving need for enhanced efficiency, recent market research projects unprecedented demand for industrial automation solutions. A Precision Market Research report forecasts the global industrial automation and control system market to expand at a 9.3% compound annual growth rate, reaching $307.7 billion by the end of 2023.
Before exploring effective strategies and how automation can help, let’s take a closer look at three of OEMs’ most common and consistent challenges.
The Challenges
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1. Finding the Right People
The United States manufacturing industry may experience a net need for as many as 3.8 million jobs between 2024 and 2033, according to a Deloitte and The Manufacturing Institute report, and more than half could go unfilled.
2. Downtime and Deadlines
Already up against long lead times and tight deadlines, unexpected downtime poses a significant challenge for OEMs. According to a 2024 Siemens report, unplanned downtime now costs the world’s largest 500 industrial companies 11% of their revenue totaling $1.4 trillion.
3. Compliance Complications
Possessing the proper compliances can be a considerable competitive advantage for OEMs—and not attaining or maintaining them can be detrimental to business. According to A-Lign’s 2023 Compliance Benchmark Report, nearly 30% of organizations lost out on a new business opportunity in 2023 because they were missing a compliance verification.
The Solutions
1. Alleviate Labor Shortage Impacts Through Automation Innovations
The gap in available skilled labor is intensifying for OEMs, with 76% of supply chain and logistics leaders reporting substantial workforce shortages in a recent Descartes survey. Attracting new talent is becoming even harder among the next generation of young workers, with a Tallo survey showing just 3.5% of Gen Z respondents interested in manufacturing careers.
Amid these challenges, OEMs are increasingly turning to automation as a practical solution. According to the International Federation of Robotics, the global number of industrial robots rose by 14% in 2023 alone, indicating an industry-wide shift toward automation as a sustainable solution to workforce challenges.
Industrial automation isn’t about replacing human workers; it’s about optimizing the workforce OEMs already have, empowering personnel to be more productive and engaged in higher-value roles while reducing the need to do repetitive, mundane tasks. For instance, robots, cobots, and automated systems can take over high-volume or physically taxing tasks, freeing up skilled workers to focus on areas where their expertise adds the most value. By handling monotonous or dangerous work, automation helps improve workplace safety, reducing the likelihood of injuries that can lead to costly downtime and further labor shortages.
Effective automation enables OEMs to meet production demands with fewer workers and create more strategic roles for skilled personnel, enhancing their job satisfaction and boosting productivity. As automation adoption accelerates, OEMs can continue to find new ways to bridge the labor gap and foster a more productive, efficient, and resilient workforce.
2. Minimize Downtime by Embracing IoT Connectivity, AI, ML, and Advanced Controls
OEMs must actively work to minimize unplanned downtime and achieve consistent production to meet tight deadlines. Advanced industrial automation solutions incorporating the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), and sophisticated control systems can transform downtime management through real-time connectivity, predictive maintenance capabilities, and data-driven decision-making to keep operations running smoothly without costly delays.
IoT connectivity enhances OEMs’ real-time systems monitoring by generating continuous data streams from embedded sensors across equipment and supply chains. This data powers predictive maintenance, allowing OEMs to address equipment health proactively and efficiently. According to McKinsey data, IoT-enabled predictive maintenance can reduce unplanned downtime by up to 25%, giving companies a significant advantage in maintaining productivity and meeting delivery schedules.
AI and ML can further elevate these predictive capabilities by identifying patterns that signal potential equipment failures or inefficiencies. Studies in the International Journal of Production Research reveal that ML algorithms can predict equipment failures with up to 90% accuracy, and the use of predictive maintenance improves overall equipment effectiveness (OEE) by up to 30%, optimizing performance and prolonging asset lifespan.
Integrating advanced controls, such as SCADA systems, programmable logic controllers (PLCs), and human-machine interfaces, enables OEMs to monitor and adjust production processes dynamically. IoT, AI, ML, and advanced control systems create a robust infrastructure that minimizes disruptions and maximizes operational efficiency.
3. Eliminate Compliance Issues Through Holistic Integration of Industrial Automation Solutions
Compliance is critical, impacting OEMs’ ability to secure new business opportunities and maintain a competitive edge. Industrial automation solutions that focus on holistic integration provide the necessary infrastructure to stay compliant with ever-evolving industry regulations, reduce compliance risk, and position an OEM as a reliable partner.
An integrated approach to automation begins with systems engineering that synchronizes hardware, software, and human workflows. A unified setup ensures each component within the production process—whether robotics, sensors, or control software—operates within a cohesive framework. By maintaining compliance with safety standards like UL508a, OEMs can avoid disruptions while also reducing operator training demands. A well-integrated system simplifies day-to-day operations, minimizes compliance risks, and facilitates easy adaptation to new regulatory standards without costly overhauls.
Automation further strengthens compliance by streamlining tracking and documentation responsibilities. Automation platforms can maintain detailed, real-time records of production metrics, giving OEMs a verifiable audit trail for all regulatory requirements.
The flexibility embedded in modern control systems also supports compliance by enabling OEMs to quickly and seamlessly adapt to new requirements. Integrated, adaptable automation solutions that anticipate and incorporate compliance needs reduce the risk of production setbacks and ensure OEMs remain a competitive force in the marketplace.
Get Started Solving Your Challenges with IFP Automation
Solving common—or complex—challenges through automation requires more than advanced technology; it takes the right partner who understands your unique needs and can provide reliable, long-term solutions. At IFP Automation, we specialize in helping OEMs implement innovative, effective, and future-proof automation solutions.
From systems engineering and control panel design to advanced IoT integration and compliance-focused automation solutions, our experts have the technical knowledge and experience to ensure enhanced productivity, exceed industry standards, and give your business a competitive edge.
Contact IFP’s automation and engineering experts today to learn more about our capabilities and discuss your industrial automation needs.