Business Operations

Demystifying Data

How 5G Is Transforming Manufacturing

Get the Latest News

Sign up here

More than half of all manufacturers will be testing or using fifth-generation cellular wireless technology (aka 5G) in some capacity by the end of 2021, according to a new study from The Manufacturing Institute. The big numbers:

  • 91% of manufacturers believe 5G connectivity will be important to the overall future of their businesses.
  • 91% of manufacturers indicate speed of 5G deployment will have a positive impact on their ability to compete globally.
  • 88% of manufacturers indicate 5G connectivity will allow engineers to troubleshoot remotely.

All-encompassing: 5G is poised to help manufacturers in almost every part of their businesses, according to the study.

  • Nine in ten manufacturers expect the utilization of 5G to lead to the creation of new processes (88%) and new businesses (86%). It can make supply chains more efficient and both machines and workers more productive. It also will likely lead to new improvements no one has anticipated yet.

Drilling down: Let’s look at just one facet of 5G’s potential impact: its effects on factory operations. This is how comprehensive the 5G transformation is expected to be:

  • Four-fifths of manufacturers indicate 5G technology will be important to inventory tracking (83%), facility security (81%) and warehousing and logistics (81%) within their facilities.
  • Three-fourths of manufacturers indicate 5G will also be important to inspection (76%) and assembly (76%) activities, with seven in ten saying packaging (72%) and employee training (71%) efforts will benefit from the deployment of 5G.

And let’s not overlook the fact that more than 90% of manufacturers expect cost savings of approximately 38% from their 5G connections.

Competitive advantage: “Manufacturers’ competitiveness depends on their ability to continuously improve the efficiency and effectiveness of their operations, and disruptive technologies are changing the way that firms innovate and produce,” said the Institute’s Center for Manufacturing Research Director and NAM Chief Economist Chad Moutray.

More information: You can join the Institute for a webinar on 5G technologies on Tuesday, April 6, at 2:00 p.m. ET. Register here.

View More