A Comprehensive Guide to Manufacturing Innovation

The manufacturing industry has always relied on innovation to adapt and grow, starting with the machine-aided production of the first industrial revolution, which led to the introduction of moving assembly lines and, ultimately, to the rise of 3D printing and robotics.

Today, manufacturers have more reasons than ever to innovate. For instance, as manufacturers contend with skilled labor shortages, economic uncertainty, increasing customer expectations and more frequent supply chain disruptions, they may no longer be able to succeed by continuing to do things the way they have in the past. In addition, manufacturers have access to ever-advancing technology solutions and an unprecedented amount of data that can drive new ways of working, novel methods of production and new opportunities for competitive advantage and profitable growth. An innovation-focused business culture capable of identifying, evaluating and implementing new ideas while also optimizing current operations can deliver a range of short- and long-term benefits for individual manufacturers, the ecosystems in which they participate and the economies in which they operate.

What Is Manufacturing Innovation?

Manufacturing innovation is the transformation of every corner of the business, including product design, research and development, supply chain and logistics, production and operations, sales and customer service.

The addition of new technologies and processes offers a wide range of opportunities for manufacturers of all sizes to explore a variety of fresh value propositions. Some manufacturers are building smart factories, others are exploring new business models, such as servitization, and still others are pursuing product customizations.

The array of opportunities for manufacturing innovation, though, can be part of the challenge. Manufacturers must be thoughtful when determining where to focus their efforts and how to balance the pursuit of new ideas with maintaining and improving existing operations. Developing innovation strategies that align with overall business goals is essential to the successful introduction of new products, processes and business models that deliver value for customers and drive growth for manufacturers.

Key Takeaways

• Continued innovation is required for manufacturers to thrive in a highly competitive global marketplace of increasingly demanding customers.
• New technologies, such as artificial intelligence, machine learning, robotic automation and 3D printing, offer rich opportunities for manufacturers to fuel businesswide innovation.
• Manufacturing innovation can deliver benefits ranging from enhanced productivity, increased competitive advantage and improved product quality and customer satisfaction to stronger economic growth and job creation.
• Manufacturers can overcome some embedded challenges with smart strategies and systems that foster innovation.

Manufacturing Innovation Explained

Innovation refers to the actual business application of ideas that result in new products and services or in changes to the way those products and services are produced or delivered. In the manufacturing sector, innovation applies to a wide range of new approaches to production, design, materials and even business models.

In many cases, modern manufacturing innovation is facilitated by newer technologies, including artificial intelligence (AI), machine learning (ML), robotic automation and 3D printing. Nearly all (97%) industrial manufacturing CEOs who responded to a 2023 EY survey said that continuing digital and technology transformation to deliver growth and operational advantages was either a very or fairly important near-term priority — even in the face of near-term economic uncertainty. In fact, technology-enabled innovation, like robotic automation and advanced analytics for scrutinizing data that streams in from sensors, smart machines and IoT-enabled products, will prove to be essential in preparing for or adapting to economic uncertainty, labor shortages, shifting customer demand, supply chain disruptions and other key challenges manufacturers face, according to EY.

Reinventing manufacturing by digitizing operations, automating and optimizing production and implementing new business models, to highlight some examples, can open up significant opportunities for manufacturers to differentiate themselves, capture new markets, increase customer loyalty, boost growth and create more resilient and reliable supply chains.

Driving Forces Behind Manufacturing Innovation

From economic volatility and workforce issues to sustainability pressures and increasing competition, manufacturers today face no shortage of stressors. While these challenges could prove to be existential threats, they can also serve as inspiration for innovation, spurring companies to prioritize investments in transformation.

Some of the primary forces driving manufacturing innovation today are:

• Technological Advancements

  Technology is a prime enabler of manufacturing innovation, and the pace of technological advancement today is spurring more significant and rapid innovation in manufacturing than ever before. Much of the manufacturing innovation taking place today is digital and data-driven in one way or another. This is evident in manufacturing’s Industry 4.0 movement to integrate digital technologies, including manufacturing AI, advanced analytics and the Internet of Things (IoT), to boost real-time data exchange throughout production. Advancements in technology are driving a variety of manufacturing innovations, including smart factories, AI-powered quality assurance and predictive maintenance.

• Globalization

  The globalization of manufacturing has intensified competition, particularly with regard to price and increasing commoditization throughout all corners of manufacturing. To stand out, manufacturers can, for example, innovate by implementing more efficient processes, introducing radically different product or service value propositions, or transforming their supply chains and logistics. In a global marketplace, the winners are those that are the most agile and adaptable.

• Sustainability and Environmental Concerns

  The competitive pressures that manufacturers face are matched by increasing demands for sustainable practices — from customers, regulators, partners and more. After all, the manufacturing sector has an enormous environmental footprint in terms of consumption of natural resources, waste generation and greenhouse gas emissions. The push for more long-term sustainability within the industry is compelling the formulation of innovative solutions to minimize manufacturing’s environmental impact, such as more robust supply chain management and automated, lights-out production facilities.

• Consumer Demand

  Today’s consumers have a long list of requirements, from products customized to meet their own wants and needs to rapid, on-demand delivery. Innovation becomes essential to meeting these escalating and sometimes rapidly shifting customer demands. In order to satisfy the marketplace, manufacturers may need to implement new technologies and processes that lead to greater flexibility and speed within their production processes at scale, without impacting quality and efficiency.

• Government Policies and Incentives

  Governments often play a significant role in the manufacturing sector, due to the industry’s outsized role in job creation, economic activity and technological innovation. Indeed, countries and regions frequently compete with one another for manufacturing dominance. In their efforts to bolster production, governments have introduced both regulations and incentives — such as subsidies, tax credits and loans — that can spur increased innovation among manufacturers.

6 Technologies in Manufacturing Innovation

As mentioned above, technological advancements are a primary driver of manufacturing innovation, enabling a range of changes throughout the business. The following six technologies are making a significant impact in the sector.

1. Automation and Robotics

   Robotic automation has long been a leading force in manufacturing innovation, helping to speed and streamline processes, protect worker safety and cut costs. For decades, robotic machines have taken on tasks that are difficult, dangerous or time-consuming for humans, creating opportunities for factory workers to focus on more valuable or rewarding work.

   Today, robotic automation systems are more advanced and affordable than ever before. While robots were once limited to preprogrammed tasks, modern robots can now perform a variety of more complex jobs, tackle one-off assignments and even work side by side with humans in production, thanks to AI and other technological advances. Manufacturers are using robotic automation to handle production processes from material handling and assembly to machining and finishing.

   Robotics and automation are essential ingredients in manufacturing innovation, helping companies across the manufacturing spectrum meet increasing demands for efficiency, quality, safety and speed to market, while also strengthening their bottom lines. Industrial automation is the top innovation trend in manufacturing, according to analysis performed by StartUs Insights. And according to the 2022 McKinsey Global Industrial Robotics survey, automated systems will account for 25% of capital spending for industrial companies through 2027.

2. 3D Printing/Additive Manufacturing

   Traditional manufacturing methods often begin with a material and remove or subtract parts of it to create a desired item. This can create a lot of waste, in terms of material, labor and energy. But a more modern, faster method, known as additive manufacturing, creates a product by adding material to it, layer by layer. Often synonymous with 3D printing, this approach obviously can minimize waste, but it has much bigger implications for innovation in manufacturing. In fact, additive manufacturing is tied with AI for second place among the top innovation trends in manufacturing, according to analysis performed by StartUs Insights.

   Additive manufacturing shortens lead times, lowers costs and means fewer individual parts to manage. It also opens up opportunities to customize products more easily, build local or distributed manufacturing models and adopt on-demand production approaches. When used in conjunction with computer-aided design, 3D printing offers the ability to create unusual or intricate product designs that might otherwise be too costly or difficult to produce. In addition, companies can use 3D printing to develop prototypes of innovative new products quickly and easily. Today, industries as wide ranging as aerospace, fashion and medical device makers are taking advantage of 3D printing to bring new ideas to life, assess their value and reduce time to market.

3. Internet of Things (IoT)

   The Internet of Things (IoT) refers to intelligent, networked objects that can connect and exchange data with other systems and devices on a network. The Industrial Internet of Things (IIoT) is sometimes used to describe the implementation of such integrated sensors, devices and machines within manufacturing environments to provide real-time data and greater insight and control over operations.

   Both versions are strong drivers of manufacturing advancements. Manufacturers are already implementing IoT or IIoT within production, distribution and logistics to monitor product conditions during shipment; detect when factory equipment needs service; and track the speed, safety and fuel efficiency of logistics vehicles. Tracking IoT-enabled products throughout their life cycles helps manufacturers improve inventory management, optimize supply chains and better understand product usage and customer behavior. The increased visibility enabled by IoT and IIoT can also help manufacturers streamline processes, cut costs and improve productivity, making their business operations more agile and responsive.

4. Artificial Intelligence and Machine Learning

   Today’s manufacturing environments and machines produce more data than ever before, demanding more than manual data analysis to procure insights or identify trends. That level of exploration requires AI and ML to analyze the information in real time, so that manufacturing can pursue a multitude of innovations, such as real-time optimization of their manufacturing environments, predictive maintenance and proactive production or logistics planning. As an example, AI can be used to analyze machine data to identify bottlenecks or inefficiencies that may be limiting production output. AI and ML solutions are not only capable of more quickly and capably analyzing information coming in, but they can learn from this data over time, unleashing opportunities for continuous improvement.

5. Advanced Materials

   Advanced materials are defined as new or modified materials that achieve higher performance over conventional materials in factors such as strength, weight and formability for a particular manufacturing application. These new options can have a profound impact on the way manufacturers design and produce their products, as well as on how they are used by customers. They also expand the options of what was previously possible, ushering in opportunities for manufacturing innovation.

   Some examples of advanced material applications include lightweight, yet durable composites that improve efficiency and enhance aerodynamics of wind turbines; biodegradable plastics that break down naturally and reduce environmental impact to make single-use packaging, agricultural films and medical devices; and substrates and electrodes that can be used to make flexible batteries for wearable devices, sensors and medical implants.

   The global advanced materials market is expected to grow at a compound annual rate of 3.65% through 2027, as demand for them increases, according to Research Nester. Illustrating this trend, global chemical giant BASF, for example, opened up a dedicated advanced materials research center to develop innovative materials and technologies for a variety of industries, including automotive, construction and electronics. It has also partnered with the I.S.I.S. Institute at Strasbourg University, Freiburg University, and ETH Zurich to launch The JONAS Research Network to explore advanced materials.

6. Immersive Reality

   Another innovation enabler is immersive reality: the set of technologies that includes augmented reality (AR) and virtual reality (VR), so-called because they draw users into actual experiences. VR immerses the user in a fully virtual environment, while AR layers digital insights or information onto a physical reality.

   There are a multitude of innovative use cases for both VR and AR in the manufacturing environment. Manufacturers are integrating these capabilities into new solutions for employee training, product design and prototyping, simulations, field service, remote collaboration and more. These technologies provide real-time data, visualization and process guidance throughout production processes. A production employee can don AR glasses, for example, while assembling a product to get detailed, step-by-step instructions. Similarly, a field service technician can use AR during maintenance, while a quality-control technician can identify minute discrepancies in a finished product.

Benefits of Investing in Manufacturing Innovation

Manufacturers — under pressure to adapt to increasing customer expectations, technological advancements, economic uncertainty and supply chain disruptions — recognize that doing things the way they’ve always done them is no longer enough. Innovation is essential to succeed in today’s dynamic business environment. Exploring, testing and integrating new options is key to becoming more agile, responsive and resilient.

Investing in manufacturing innovation offers a range of business benefits for manufacturers, including:

• Enhanced productivity and efficiency: One of the most tangible and common benefits of manufacturing innovation is improved productivity and efficiency. Increased digitization, automation and data-derived insights can help manufacturers streamline or simplify processes, minimize human error and boost key performance metrics (KPIs), like throughput and time to market. The introduction of new digital systems and robotic automation also improves the productivity of the human manufacturing workforce.
• Competitive advantage: Manufacturers that make innovation a core part of their DNA can enter new markets, attract potential customers, improve customer loyalty and more. The net result is a competitive advantage over less innovative rivals, something that’s otherwise hard to achieve in a hypercompetitive, highly commoditized marketplace.
• Economic growth and job creation: The manufacturing industry has long been a force for economic growth and job creation. In the U.S., for example, every dollar spent in manufacturing yields an additional $2.79 for the economy — more than any other sector, according to the U.S. Department of Defense. What’s more, U.S. manufacturing contributed $2.89 trillion in GDP in 2023, according to the National Association of Manufacturers (NAM), which also found that the sector employed 13 million people as of February 2024. As manufacturers continue to innovate, they’re expected to drive even more economic benefits as advanced manufacturing approaches create new, more modernized and higher paying jobs than in the past.
• Supply chain optimization: What used to be a back-office priority became headline news during the COVID-19 pandemic, as the fragility of supply chains in the wake of demand and supply shocks became abundantly clear. Optimizing supply chains, not only in terms of efficiency but also effectiveness and resilience, instantly became a top priority for manufacturers across the board. Manufacturers that pursue end-to-end digital supply chain transformation and innovative solutions can more effectively anticipate and respond to disruptions, whether caused by geopolitical conflicts, economic shifts, climate change and related weather events, or even sudden shifts in customer demand.
• Improved product quality and safety: Manufacturers track a lot of important KPIs, such as efficiency, productivity, capacity and equipment utilization, to measure success. But product quality and safety are equally important to manufacturing performance. Fast or efficient production processes matter little if quality suffers. One key benefit of investing in innovation, in terms of product development or production processes, is improved product quality and safety. Increased automation, data-driven processes and other transformations can have a positive impact on the quality of output as well as safety — both on the production floor and in terms of actual product safety.
• Expanding market opportunities: Innovation in processes or products can generate a variety of new business opportunities, whether it’s expanding to new markets or customer segments, upselling or retaining customers, or exploring entirely new business models. Manufacturers that invest beyond simply improving their existing operations and approaches will open the door to wider business opportunities.
• Enhanced customer satisfaction: It bears repeating that customer experience demands are higher than ever before. Customers want personalized solutions, long-term support, quick delivery and other value-added services from the companies they do business with. Manufacturers that take advantage of new technologies and opportunities to innovate can be more agile and responsive to customer needs; forge closer, longer-term relationships with customers; and better understand how their products are being used. This creates a loop of insight for further innovation over time.
• Long-term sustainability: Manufacturers remain under pressure to reduce their environmental impact, and innovation can yield many beneficial results. New technologies for tracking and managing resources, reducing waste and optimizing processes can cumulatively create greater long-term sustainability. Many of the innovative technologies mentioned earlier, like IoT, robotic automation and AI/ML, can be harnessed for sustainability initiatives, as well.

Challenges to Manufacturing Innovation

If manufacturing innovation were easy, everyone would be doing it. In many cases, manufacturers are living with some level of legacy processes, technologies or change management from employees who can thwart efforts to rethink or redesign the way things are done. It’s essential that manufacturers seeking to invest in innovation be clear about the hurdles that exist in their own organizations in order to be able to address them and make progress.

Some of the most common challenges to manufacturing innovation include:

• Skills gap and workforce development: Some of the biggest challenges to innovating in manufacturing are workforce-related. Many of the manufacturing innovations coming down the pike will require additional training and skills. Manufacturers may need people who can operate and maintain robots, for example. “Lack of skilled labor is often cited as the No. 1 reason that U.S. manufacturers do not move forward with robotics and automation,” says Suzy Teele, chief strategy officer of the ARM (Advanced Robotics for Manufacturing) Institute.
  It’s important that manufacturers make innovation a specific focus as a core capability in their hiring, training and incentive plans. In some cases, manufacturers may find they need to partner with third parties to access the skills required, rather than hiring them internally.
• Cybersecurity risks: Securing manufacturing systems has always been challenging and complex, due to the number of legacy, obsolete and end-of-life systems on manufacturing floors. Manufacturers are now the most targeted sector for cyberattacks and are particularly vulnerable to ransomware attacks , according to industrial cybersecurity firm Dragos. And, as manufacturers add more connected systems that share data, their attack surfaces multiply exponentially. Thus, manufacturers must recognize and address their unique cybersecurity risks as they pursue innovations, as well as establish an effective and frequently tested defense-in-depth architecture, set clear cybersecurity program policies and procedures, and provide awareness training for employees.
• Supply chain vulnerabilities: A manufacturer is only as successful as its supply chain is resilient. And in recent years, particularly during the COVID-19 pandemic, the importance — and fragility — of supply chains has become apparent. The good news is that this shines a spotlight on the need for greater visibility and resiliency in supply chains. Manufacturers pursuing innovation should consider how their supply chains could impact their intended outcomes and, therefore, invest in greater supply chain digitization to ensure that they have a solid foundation in place for their innovation efforts.
• Regulatory and compliance issues: Staying on top of regulatory and compliance issues is essential for every industry. In manufacturing, regulations help to ensure quality, safety and reliability. But keeping up with evolving requirements, in response to technological advancements, safety discoveries and public health concerns, can be a challenge. When pursuing any potential innovation, manufacturing decision-makers should conduct their due diligence to assess any potential regulatory and compliance issues.

Future Trends and Predictions

Due to the rapid pace of advancements in technology, manufacturing innovation opportunities are ever-evolving. Manufacturers that want to remain competitive and agile will keep an eye on some of the biggest changes beginning to take hold in the sector.

Some of the most valuable emerging trends in manufacturing innovation include:

• Personalization and Mass Customization

  Mass customization sounds like an oxymoron. After all, efficient manufacturing is built upon the rapid production of products at scale. However, as customers have begun to demand more personalized solutions and as technology has advanced, manufacturers are increasingly able to offer tailored products that meet individual customer demands, without significantly increasing cost or delivery time. Advances like 3D printing/additive manufacturing, robotics, IoT and AI-enabled automation can come together to create a high-variability, lower-volume production environment that can churn out customized products profitably.

• Sustainable Manufacturing

  Innovation in manufacturing today isn’t just about optimizing production but also about rethinking the impact that manufacturers have on the environment. The drumbeat calling for more sustainable manufacturing has grown even louder in recent years, as customers, regulators, partners and other key stakeholders demand more sustainable manufacturing products and processes. According to the U.S. Environmental Protection Agency, sustainable manufacturing is “the creation of manufactured products through economically sound processes that minimize negative environmental impacts while conserving energy and natural resources.” Manufacturers that embrace sustainable manufacturing innovation realize a number of benefits, including greater operational efficiency, reduced waste and costs, access to new customers and markets, strong brand recognition and reputation, increased ability to comply with new regulations or incentives, and increased growth and global competitiveness.

• Collaborative Robots and Human-Machine Interaction

  One of the more transformative innovations taking place on production floors is the introduction of robots that are capable of interacting and working safely alongside their human counterparts. Old-school industrial robots were largely “dumb” mechanized machines cordoned off safely from the rest of the workforce. In recent years, however, collaborative robots (or cobots) with advanced safety features and other capabilities have taken off. Many have sensors to detect obstacles and circumvent collisions, force-limited joints to preclude excessive force and low-speed motion to reduce risk of injury to people. Cobots are able to take on some of the drudge work in existing production lines or perform tasks that demand strength, endurance or precision that their human counterparts do not possess. And unlike their predecessors that had limited preprogrammed capabilities, cobots can be built in such a way that human operators can teach them new tasks by guiding their movements. They’re also designed with user-friendly interfaces — often called human-machine interfaces — that workers can use quickly, without any need for in-depth training or expertise.

• Blockchain in Manufacturing

  Blockchain, the technology behind bitcoin, has applications in manufacturing as well, helping to streamline business operations, better manage assets, improve supply chain visibility and create trusted interactions with partners. This distributed, tamper-proof ledger of transactions or other data (stored in a chain of linked blocks) can provide a verified, immutable record of all transactions or contracts among users. For example, a supply chain ecosystem could use blockchain to track transactions among the partners. Blockchain technology can also support the creation of smart contracts that execute automatically under certain conditions, such as triggering a manufacturer’s payment to a supplier once a delivery is made.

Strategies for Fostering Innovation in Manufacturing

While new technologies are critical keys to manufacturing innovation, decisions about which new ideas to pursue should be driven by a need or problem to solve — not by a desire to chase the latest, headline-grabbing tool or approach.

Manufacturers that experience the most success with innovation take a formal approach to the process. Innovation doesn’t just happen; it’s embedded in the company and is aligned with its overall goals. Alas, just 39% of 194 manufacturers surveyed for Wipfli’s 2022 Resilient Manufacturers study said that they have an innovation strategy that aligns with their other corporate strategies. Without such a strategy, innovation can be spotty, good ideas can get missed, efforts can be duplicated and resources may be wasted.

Establishing a dedicated manufacturing innovation strategy, along with goals and KPIs to track, is critical. It should include a consideration of what the manufacturer hopes to accomplish with innovation, how it can better serve its customers, what its competitors are doing and what resources will be required. Some other must-haves to get a leg up on fostering innovation include the following:

• Investment in R&D

  Manufacturers that want to stay at the forefront of innovation invest in ongoing research and development to explore the new technologies, materials, products, production methods and business models that will nurture their continued relevancy and competitiveness. Those manufacturing organizations that already have an R&D process in place should benchmark their approach against current industry best practices.

  Integrating insight from employees, customers, suppliers, partners and other stakeholders will also ensure that the R&D organization remains adaptive to changing needs and conditions. Manufacturers should also analyze data for patterns and trends that could suggest future R&D pursuits.

• Partnerships and Collaborations

  Manufacturing innovation requires an intimate understanding of the business, but that alone is not enough. Because manufacturers are rightly focused on what they do best, their ability to envision what might be done differently can be limited. That’s where strategic partners and collaborators come in.

  Many manufacturers find value in partnering with companies that are steeped in the types of innovations and technologies that may add value to their businesses. These third parties have a better understanding of the possibilities, challenges and best practices for integrating innovation into the manufacturing environment, whether they are technology providers, consultants, robotics and automation vendors, research organizations or educational institutions. Building an ecosystem of partners can empower manufacturers to more swiftly and effectively integrate new ideas and solutions into their environments.

• Cultivating a Culture of Innovation

  Creating a workplace in which everyone is encouraged, equipped and supported in making changes is invaluable for innovation. Some prerequisites for engendering a culture of innovation in manufacturing are transparent communication, encouragement and rewarding of idea generation and experimentation, support for collaboration and acceptance of the failures that inevitably accompany risk-taking. In order to take hold within a company, support from the top, as well as the operationalization of innovation into day-to-day workflows, is needed. It’s also important to focus hiring and retention efforts on those people who are willing to take risks and challenge the status quo.

Encourage Manufacturing Innovation in Your Business With NetSuite

A modern enterprise resource planning (ERP) system designed specifically for manufacturing can make a world of difference when it comes to exploring, testing and implementing new ideas. NetSuite for Manufacturing brings every aspect of operations together in one place, from financial management and business strategy down to the production line. This unified ERP platform enables manufacturers to not only manage their supply chains, plan production, service customers and oversee specific manufacturing processes, but it also offers the flexibility to adapt to processes as innovations come to the fore.

The manufacturing industry is at a tipping point as companies contend with global competition, increasingly commoditized processes and products, and demand for more environmentally friendly approaches. Innovation has the power to propel manufacturing companies forward to better compete in this environment. New production techniques and products can deliver a range of upsides, including streamlined processes, sustainable approaches, increased efficiency, lower costs, superior quality and precision, greater customer satisfaction and increased profits. Innovation is less an option than an existential requirement, driving manufacturing leaders to invest in fostering a culture of innovation, assessing and implementing new technologies and other advances, and guiding their companies toward new opportunities and growth.

Manufacturing Innovation FAQs

Why is innovation important in the manufacturing process?

Innovation has long been a driver of advancements in manufacturing, from the first industrial revolution until today. Indeed, industry watchers view innovation as critical for survival and growth in manufacturing. In today’s marketplace, which is marked by intense global competition, escalating customer demands, advancing technology, evolving government regulations and calls for more sustainable manufacturing practices, companies must reassess existing manufacturing processes and technologies. Prioritizing innovation and digital transformation positions manufacturers to achieve a number of benefits that can give them an edge over competitors, including improved product quality and safety, greater customer satisfaction, improved efficiency and productivity and greater market opportunities.

Which manufacturing industry is most innovative?

It’s difficult to name one particular industry within the manufacturing sector as the most innovative overall. Some manufacturing segments, though, have been known for pushing the envelope and continue to do so. Automotive manufacturers have long paved the way for manufacturing innovation, for example. Today, many automakers have integrated robotics to produce higher quality parts more accurately. They have also adopted computer-aided design and 3D printing to develop more complex and accurate designs in the preproduction stage, and some longtime innovation leaders and newer entrants are pursuing higher levels of automation in their plants.

Aerospace and defense companies are also known for forging ahead with innovation. They’ve been at the forefront of using advanced materials, such as carbon fiber composites, used to build components that are both strong and lightweight to make aircraft that are more fuel-efficient and capable of flying for longer ranges. The industry is also continually developing more innovative manufacturing processes and product designs.

The semiconductor industry is another corner of manufacturing abuzz with innovation, as companies pursue new markets for their products intended for use in artificial intelligence and IoT applications. Semiconductor fabrication plants are some of the most highly automated in the manufacturing sector. These companies are also frequently experimenting with new materials.

What is innovation in the process of production?

Innovation within the process of production refers to improvements manufacturers can make in their methods of production, their design approaches and the materials they use. Newer technologies — such as robotic automation, artificial intelligence, 3D printing and more — allow manufacturers to increase efficiency, reduce waste, improve product quality, shorten time to market and capture new customer and market segments.

What makes something innovative?

Innovation in the business world refers to the application of ideas to develop new goods, services, means of production or even business models, or to introduce improvements to existing forms of any of those. Defining innovation can be tricky. But at a high level, something is innovative if it unlocks new business value or opens up new avenues of growth for a business.