It’s no secret how important the advanced manufacturing and logistic (AML) sectors are to Indiana’s economy. Employing more than 500,000 Hoosiers, AML contributes more to the Indiana gross state product than any other industry.
What might be less known is what a potentially perilous position those industries are in and what that positioning could mean for the state’s economy. A Brookings Institution study has shown Indiana firms must increase technology investments to maintain its leadership positions in manufacturing and logistics.
Work done by Conexus Indiana, a non-profit organization that works to strengthen the advanced manufacturing and logistics industries throughout Indiana, is providing a clearer picture of the challenges those industries face and potential solutions in terms of technology adoption.
Conexus Indiana and the Indiana University Kelley School of Business Center for Excellence in Manufacturing conducted a survey in 2020 of Indiana advanced manufacturing and logistics firms, seeking to measure how firms are adopting digital technologies. There were some startling revelations. For instance, while large Hoosier firms were quickening their pace of technology adoption and seeing enhanced productivity and quality as a result, small-and mid-sized firms were struggling to find the resources to spend on technology. And most didn’t even have a plan for future technology adoption.
The state-funded grant-matching program, Manufacturing Readiness Grants, made resources available for Hoosier companies to address the issue (as was chronicled in a February 2 Tech Talk article). While the results of that initiative were impressive, the hurdle is not completely cleared.
As Conexus noted in a recent Inside Indiana Business guest column, significant progress is being made.
Conexus Indiana, in conjunction with the Indiana Economic Development Corporation and other organizations, is helping AML companies in several important ways. In addition to the grants program they have helped usher in, Conexus is also hosting Emerging Technology Showcase events for Hoosier firms. The next showcase event, which focuses on the digital transformation for logistics is set for April 21, and Conexus officials confirmed that almost 100 people from dozens of companies statewide have registered to attend.
“These events help Indiana companies see the upside of emerging technologies,” states Ryan Henderson, Conexus director of innovation and digital transformation. “We’ve had a tremendous response for previous events focused on artificial intelligence, workforce wearables used for safety purposes and what (Amazon Web Services) is offerings on some of its fulfillment technologies.”
Most recently, Conexus partnered with Carmel-based Telamon Robotics, Purdue University and Vincennes University to host a showcase about collaborative robots – or cobots. “We’re focusing on the things we’ve seen in Indiana companies’ strategic plan,” Henderson explains.
Indiana employers report that newly adopted technologies “are not displacing workers, but, instead, are allowing existing talent to focus on functions that machines and algorithms cannot do,” Henderson emphasizes.
And that’s not just Henderson talking. Through the Manufacturing Readiness Grant program, Conexus has evaluated more than 200 digital transformation projects at Indiana advanced manufacturing and logistics companies.
“Almost every single digital transformation project we’ve seen is augmenting the labor supply, and existing employees are getting new roles,” Henderson stresses. “Many of these projects have actually led to added jobs. That’s what we’re hearing from our network. Technology is freeing up human brains to do more of the thinking and programming.”
The effort to collect data through company surveys is ongoing. Conexus continues to grind through the data and plans to have a more detailed study out this fall. “The companies we’re working with have hundreds of thousands, if not millions, of data points. This is all headed to detailed data-driven insights,” Henderson says. “That’s going to be really exciting.”
Henderson concludes, “(Their) response will help Conexus Indiana better understand what we can do to ensure we continue our momentum toward high-tech opportunities for Indiana’s advanced manufacturing and logistics firms and their employees.”
Technology adoption does more than help Indiana hold its ground in the ALM sector. Conexus is compiling case studies on Manufacturing Readiness Grant recipients to illustrate the point.
“It’s really important for the success and especially competitiveness (of Indiana ALM companies) in the next 10 to 15 years,” Henderson says. “It comes down to being more productive, doing more with less and improving quality. These advanced technologies can help companies innovate products and processes, increase speed to market and with entering new markets, all of which can lead to significant growth for these companies – and the state’s economy.”
