Advanced manufacturing is helping manufacturing organizations in every industry become more competitive and resilient. By leveraging cutting-edge technology and focusing on process improvements, manufacturers can become more agile in responding to market trends, more cost-effective over time and more environmentally responsible.

This article examines the types of technologies and methods used by advanced manufacturers to achieve these benefits.

What Is Advanced Manufacturing?

Advanced manufacturing is the practice of using innovative technologies and techniques to enhance the way a company designs, processes and brings goods to market. A broad term without a universally accepted definition in the manufacturing world, advanced manufacturing has been used interchangeably with smart manufacturing, Industry 4.0, the Fourth Industrial Revolution and other labels.

Advanced manufacturing is often associated with cutting-edge technologies, such as computer-integrated manufacturing, robotics and 3D printing, which are used on the factory floor to accelerate and reduce the cost of production. It can also involve the use of advanced analytics and process automation to improve back-end management workflows, such as inventory management, to increase efficiency and reduce waste. In addition, the advanced manufacturing umbrella encompasses the integration of pioneering technology and materials in new products, such as incorporating Internet of Things (IoT) connectivity and application ecosystems into new lines of smart products to pave the way for service-based recurring revenue streams.

But no matter which way you look at it, advanced manufacturing methods can help companies achieve a variety of business goals, including efficiency, sustainability, supply chain resilience, quality control and flexibility in responding to emerging market conditions.

Key Takeaways

  • Advanced manufacturing technologies, such as robotics, automation and converged operations and information systems, enhance factory productivity and innovation.
  • Advances in additive manufacturing accelerate prototyping and make it more cost-effective to produce custom and small-batch runs.
  • Progress in advanced composite materials has led to the development of high-performance components across various industry sectors.
  • Manufacturers use IoT sensor data and advanced analytics for predictive maintenance and digital-twin modeling to identify areas for production optimization.

Advanced Manufacturing Explained

Advanced manufacturing is rooted in automation, leveraging robotics, programmable automation and process automation to streamline production, minimize downtime and optimize resource utilization. Many advanced manufacturers also rely on sensor telemetry, connectivity, the convergence of information and operational technologies (IT/OT) and analytics enabled by artificial intelligence/machine learning (AI/ML) algorithms to enhance monitoring and predictive action across their operations. This can improve equipment performance, reduce downtime and suggest production optimization that speeds operations while reducing costs.

Advanced manufacturing technologies can also facilitate waste reduction and support “circular economy” concepts — which simply means reusing, repairing, refurbishing or otherwise recycling products and materials so that they are, more or less, in continuous use. Manufacturers using these methods optimize resource usage, thus reducing environmental impact — and typically increasing profitability in the process.

Included among advanced manufacturing systems are emerging and maturing technologies, such as additive manufacturing, also known as 3D printing. Additive manufacturing can be used for rapid prototyping, which accelerates time to market and helps manufacturers respond faster to changing customer requirements. It also has a role in making it easier for companies to manufacture higher quality and/or more personalized goods and services by providing the means for more cost-effective production of customized and small-batch runs that meet the needs of individuals and smaller customer segments.

Additionally, by embedding greater connectivity into products (think: IoT) and pairing that with the development of customer-facing software, manufacturers can uncover opportunities for add-on services that increase the customer value of the goods they sell.

Advanced Manufacturing vs. Traditional Manufacturing

Advanced manufacturing is characterized by integrated technology and connectivity across a manufacturing organization. Advanced technologies are embedded — and connected — throughout production lines, inventory management, logistics and the back-office business processes that support them. The investments required to transform a traditional manufacturer into one that uses advanced manufacturing techniques can lead to significant changes in the business that improve efficiency, enable greater personalization of product and speed up time to market.

The following chart details the key differences between the two manufacturing approaches.

Side by Side: Advanced Manufacturing vs. Traditional Manufacturing

Advanced Manufacturing Traditional Manufacturing
Processes Uses digital and cutting-edge technologies, such as 3D printing, robotics, AI/ML and advanced materials. Relies on manual labor and conventional factory machines for production.
Efficiency and Productivity Promotes higher efficiency and productivity through automation, precision manufacturing and optimized processes. Struggles with lower efficiency and productivity due to more manual labor and conventional machinery, which results in slower processes.
Customization Integrated tech and digital connectivity drive down cost of customization/flexibility, supporting profitable product personalization and small-batch runs. Customization options are far more challenging due to inflexibility of production lines and higher costs for small batch runs.
Innovation Speed Enables rapid prototyping and testing, driving faster innovation and product-development cycles. Slower innovation and product development cycles due to longer prototyping and testing phases.
Cost Requires higher initial investment in technology and training but reduces cost over time by raising efficiency and minimizing waste. Needs a lower initial investment but incurs higher long-term costs tied to inefficiency, waste and lost opportunities.
Skills Required Requires workers who are skilled at using digital tools, automation and advanced technologies. Requires traditional manufacturing skills, with less emphasis on digital proficiency.
Environmental Impact Waste reduction, recycling and more efficient use of materials and energy contribute to lower environmental impact. Incurs higher environmental impact due to less efficient use of resources and higher production waste.
Flexibility Drives flexible production capabilities that can adapt quickly to market changes and product demand. Needs significant time and investment to change production lines, slowing reaction time to changes in the market.
Quality Control Enhances quality control through automation and real-time monitoring, leading to higher precision and consistency in products. Relies heavily on manual inspection and testing, potentially leading to inconsistencies in quality control.
Quality Control Enhances quality control through automation and real-time monitoring, leading to higher precision and consistency in products. Relies heavily on manual inspection and testing, potentially leading to inconsistencies in quality control.
Production Volume Suitable for both small-scale/custom production and high-volume manufacturing due to scalable technologies. Suitable for high-volume production runs to achieve economies of scale and reduce unit costs.
Supply Chain Integration Supply Chain Integration Less able to integrate with suppliers; relies on traditional inventory and logistics management methods.
Sustainability Focuses on sustainability through efficient material use, energy consumption and waste reduction. Less focused on sustainability, with potential for higher waste and energy consumption.
The differences between advanced manufacturing and traditional manufacturing all derive from the use of sophisticated technology.

Types of Advanced Manufacturing Technologies

From automated quality-control systems and industrial robots to advanced 3D printing and laser welding, advanced manufacturing relies on a variety of technologies to enhance production efficiency, reduce costs and deliver more competitive products to market. The following are some of the technologies that underpin advanced manufacturing strategies.

  • Additive Manufacturing

    Also known as 3D printing, additive manufacturing is the process of creating 3D objects by adding material, layer by layer, in a pattern usually created through a computer-aided design (CAD) system. Additive manufacturing makes it faster and less expensive to produce one-off prototypes during research and development. It also increases the speed and flexibility of production — particularly for custom products, small production runs or high-value, specialty parts.

    Some of the manufacturing sectors that have seen the greatest benefits from this technology include aerospace, defense and healthcare. Many sustainability experts also believe that additive manufacturing can be a more efficient use of materials than subtractive machining, which creates material waste. Polymer 3D printing is the most common type of additive manufacturing, but metal 3D printing is the fastest-growing, at twice the rate of the rest of the additive manufacturing market, according to recent estimates.

  • Advanced Composite Materials

    Materials science is a rapidly evolving field of advanced manufacturing, driving a new class of high-strength, low-weight and highly flexible advanced composite materials. Whether used to produce carbon-fiber bike frames or advanced thermal materials for spacecraft, advanced composites enable manufacturers to create new products that outperform traditional materials. This can include making products go faster, better withstand temperature extremes, more safely tolerate impact or hold up to intense structural pressure over time.

    In addition to sporting goods and aerospace, other sectors that have seen significant benefits from advanced composite materials include automotive, energy, electronics and construction. Many manufacturers are using advanced composite materials in combination with additive manufacturing.

  • Robotics

    Robotics and automation are both vital to advanced manufacturing — and different, although the terms are often used interchangeably. Automation uses programmable or autonomous physical machines and/or software to perform repetitive tasks previously carried out by human workers. Robotics is a subset of automation, focusing on the design, construction and operation of robots to execute physical tasks.

    Not all automation is robotic. For instance, an automated factory conveyor belt is not considered a robot. Conversely, not all robots used by manufacturers perform repetitive automated tasks in the same way as industrial automation machinery. For example, some autonomous robots can travel between facilities and respond to sensor or computer-vision data. Their behavior changes based on environmental conditions or other factors defined in the robots’ logic. Additionally, collaborative robots (aka cobots) are used alongside human labor, either through programmatic setup or manual remote control, in which employees remotely operate cobots in dangerous or extreme conditions. An estimated 4 million industrial robots are in use across manufacturing facilities worldwide.

  • Industrial Automation

    On the production side, industrial automation minimizes the need for human involvement on the factory floor, thereby accelerating production, reducing labor costs and mitigating human error. Advanced manufacturers also apply automation to areas such as inventory management, quality control, operational maintenance, process that involves repetitive tasks.

    Industrial automation is typically categorized into three types: fixed, programmable and flexible. Fixed automation relies on a predetermined configuration of machinery to execute a specific production sequence that yields a single product. Examples include automated assembly machines and conveyor systems. Programmable automation allows the system to change tooling configuration and operation sequences based on commands programmed into the system. A common application is systems controlled by programmable logic controllers (PLCs). Flexible automation is more modular and can be adjusted before and during production, offering greater reconfigurability and adaptability to changing conditions and goals. Examples of flexible manufacturing systems include cobots and multipurpose robotic arms that can be programmed to perform a variety of tasks, such as painting, drilling holes or riveting, depending on specific requirements.

    Some manufacturers aim to achieve a “lights-out factory,” which is fully automated and requires so little human intervention that it could theoretically operate in the dark. Although such factories are rare, many manufacturers have implemented lights-out automation for specific processes or production lines.

  • Laser Machining/Welding

    Laser machining and welding is an advanced manufacturing process that accelerates production, enhances precision and improves product quality compared with traditional methods, such as arc welding and computer-numerical control (CNC) milling. Advanced manufacturing companies are not only enhancing the efficiency and durability of laser machining and welding processes, but they are also introducing new technologies to monitor and inspect laser welding during and after the welding process to ensure quality and performance. By integrating AI, computer vision and automation, laser machining and welding can further increase precision and production speed. Although laser technology requires a higher capital investment, manufacturers can achieve a return on investment (ROI) through faster production speed and higher output.

  • Nanotechnology

    Nanotechnology is a leading-edge advanced manufacturing field. Many organizations are working to perfect nanomanufacturing and nanofabrication techniques, such as molecular self-assembly, to create complex structures that form the basis of highly efficient electronic chips, circuits and sensors. Manufacturers in the chemical and materials development sectors are also experimenting with nanoparticle synthesis methods to create high-performance materials and solvents for various downstream manufacturing industries, including biomedical, defense and construction. Other companies are looking to nanotechnology to develop greener materials and more sustainable manufacturing processes. For example, research is underway to develop nanocomposites with improved biodegradability and less toxicity than traditional polymers.

  • IT/OT Network Integration/Convergence

    The integration of operational technology (OT) systems and networks with information technology (IT) systems and networks is driving many advanced manufacturing innovations. Integrating OT manufacturing systems with IT connectivity and computing power is the foundation of the modern smart factory. With information flowing between production automation systems and enterprise information systems, organizations can adjust production targets in real time based on business conditions, implement predictive maintenance based on environmental or operational factors and enable a more efficient remote workforce across a distributed manufacturing environment. Manufacturers with a well-integrated IT/OT network can increase automation and visibility of manufacturing systems. They are also better positioned to manage their factories based on data that flows across the supply chain, from the production line to the warehouse and beyond. Ultimately, this integration reduces IT costs and extracts value from both OT and IT investments.

  • Industrial IoT and Operational Sensors

    Industrial Internet of Things (IIoT) devices and operational sensors provide a continuous stream of data that advanced manufacturers can use to make data-driven decisions and power smart automation. IIoT devices and sensors come in many forms and can be tailored to a wide range of use cases. For example, internet-connected cameras on factory floors can enable remote inspection, sensors on operational machinery can trigger automated predictive maintenance when certain conditions are met and IoT asset tracking can be used to monitor goods or raw materials as they move through production and logistics processes.

    Advanced manufacturing processes that rely on IIoT technology can deliver significant value to manufacturers, including increased productivity, improved equipment effectiveness and reduced costs. Already, about 74% of manufacturers have implemented or are planning an IIoT strategy. Many of these companies are expected to increase their investments and adoption rates as advances in 5G connectivity, cloud computing and AI continue to enhance the benefits of IIoT technology.

Benefits of Advanced Manufacturing

Advanced manufacturing technology and techniques offer manufacturers the potential to enhance profitability and market competitiveness. In the process, they can also contribute to greater environmental sustainability and economic resilience. Such benefits are often interrelated. Some of the most common motivations for companies to invest in advanced manufacturing are to:

  • Reduce production costs: Manufacturers that innovate in areas such as robotics, automation, IIoT and advanced analytics can minimize production costs by optimizing their workflows and reducing manual labor expenses on the factory floor.

  • Boost productivity: Some experts say that adopting an advanced manufacturing approach, or “factory of the future,” could enhance productivity by 30% to 50%, which may explain why three in five companies have already begun to implement such strategies.

  • Enhance cost efficiency: The increasing use of IIoT devices, IT/OT convergence and operational and financial analytics can equip manufacturers to enhance their cost efficiency through better decision-making and more automated processes.

  • Improve quality: Quality management is a key driver as manufacturers forge ahead with technology investments in 2024. One study found that quality control is the top AI/ML use case for manufacturers in the next year, with 45% of respondents planning to implement it — more than cybersecurity, process automation, supply chain management and robotics.

  • Reduce time to market: Technology advancements are enabling manufacturers to not only decrease the time it takes to introduce new products to the market, but also to increase their agility in producing more tailored product runs at a reasonable cost. For instance, closed-loop product life cycle management advances have been shown to reduce time to market by over 20%. Achieving closed-loop product life cycle management, however, requires a digital information backbone formed by integrating manufacturing systems, IIoT and enterprise resource management (ERP) systems — to name a few.

  • Minimize raw material waste: Automation in inventory and supply chain management, as well as the maturation of emerging technologies, such as additive manufacturing, are helping companies reduce raw material waste throughout the production process. The use of additive manufacturing alone can reduce waste by up to 90% compared with traditional subtractive manufacturing methods.

Advanced Manufacturing Challenges and Considerations

While advanced manufacturing practices have the potential to revolutionize business operations and financials, the path to this transformative future is rife with risks and challenges. Manufacturers should consider the following challenges when introducing advanced manufacturing initiatives:

  • Material limitations: Manufacturers embracing techniques such as additive manufacturing, laser welding and nanotechnology will encounter material limitations. Many of these techniques yield products and components that can be made from only a limited set of materials, which restricts the range of products a company can produce. In some cases, it also can tie manufacturers to the specialized supply chains that provide specific materials. A prime example is the production of lithium-ion batteries, which is constrained by the global availability of lithium and cobalt.

  • Production inconsistencies: Manufacturers can confidently rely on some advanced technologies, such as robotics and automation, to enhance the quality and consistency of their production processes. But others are newer and still experimental, such as advanced composite materials and additive manufacturing. Yes, they can support initiatives that enhance customization and product innovation. However, they still come with added risk, such as production inconsistencies and scalability challenges.

  • Operational and organizational challenges: About 56% of organizations cited organizational structure or cultural challenges as the primary obstacle to implementing a smart factory strategy, according to a Manufacturing Leadership Council survey. Advanced manufacturing requires significant stakeholder buy-in and change management to effectively implement new technology and processes.

  • Funding: Manufacturers must invest in innovative technology and processes to develop maturity in advanced manufacturing. While many manufacturers are in the intermediate stage of their journeys, progress beyond that point has stagnated. Research shows 69% of manufacturing organizations are leaving their digital investments unchanged for 2024 and 10% are cutting back.

  • Compliance: As manufacturers digitize their operations, they will encounter new regulatory requirements, such as those related to cybersecurity and data privacy, which may be unfamiliar to traditional manufacturers. Additionally, new uses of experimental materials, robotics and automation may alter risk management and safety protocols, posing challenges to organizations as they strive to maintain compliance with existing standards. However, advanced manufacturing technology can enhance visibility and reporting, which can help organizations demonstrate compliance.

  • Supply chain disruption: Supply chain disruption remains among the top five external challenges for manufacturers in 2024, with the average lead time for production materials still 37% longer than pre-pandemic levels. This may make it difficult for organizations to manage raw material and work-in-process inventory when experimenting with advanced materials. But advanced manufacturing techniques, such as process automation and analytics driven by IT/OT convergence and IIoT data, can improve forecasting and supply chain management to help mitigate ongoing disruptions.

  • Labor shortage: Advanced manufacturing can both solve and exacerbate labor shortages at manufacturing organizations. Although automation and other efficiency measures can reduce the need for large numbers of factory workers, technology deployments must be designed, implemented and maintained over time by skilled tech workers — who are in short supply. In 2024, manufacturing insiders reported that the lack of skills to implement and the lack of skills to optimize technology were two of the top three biggest barriers to smart manufacturing adoption.

Industries That Use Advanced Manufacturing

Many of the technological breakthroughs and business advantages of advanced manufacturing are applicable to all manufacturing sectors, but some industries and use cases are especially well-suited to them.

  • Aerospace and defense: Both aerospace and defense are leveraging additive manufacturing and advanced composite materials for rapid prototyping of equipment and to create lightweight, high-strength components that enhance product performance.

  • Automotive: The automotive industry has some of the most advanced use cases of automation and robotics on the production line, as well as advanced methods for optimizing operations, improving precision engineering and quality control, and supporting just-in-time manufacturing principles.

  • Healthcare and biomedical: Advanced quality-control systems for pharmaceutical manufacturers, 3D bioprinting for biomedical firms and other advanced manufacturing technologies have allowed healthcare and biotech companies to rapidly innovate in their offerings.

  • Consumer electronics: Consumer electronics companies are using nanomanufacturing techniques to improve device performance, additive manufacturing to enhance product customization and time to market, and IoT and app ecosystems to create more recurring lines of revenue for their businesses.

  • Custom manufacturing and small-batch production: Technologies such as additive manufacturing and flexible automation have made custom manufacturing and small-batch production more cost effective across all industry sectors, supporting many core business initiatives for enhancing customer experience through product and service personalization.

Advanced Manufacturing Examples

Since there is no single definition or set of criteria for what advanced manufacturing encompasses, the potential use cases and transformative effects of its innovations are diverse. The following are some examples of what advanced manufacturing can entail.

Predictive Maintenance

Industrial IoT data from sensors on manufacturing equipment, combined with AI/ML-powered analytics tools, enables organizations to extend the life of their equipment and reduce factory downtime by implementing more intelligent predictive maintenance processes. For example, aluminum mining and manufacturing company Alcoa used sensor data and predictive analytics to proactively detect equipment issues, reducing unplanned downtime by up to 20%.

Digital Twins

Many advanced manufacturers also create digital twins, which are virtual replicas of physical assets, processes or systems, using AI/ML algorithms and large amounts of IoT sensor data. These digital twins can be used to simulate new scenarios in advance to optimize processes or introduce new production methods with less risk. For instance, Competitive Power Ventures uses digital twin technology in its gas turbine power plants to model improvements that have increased certain aspects of performance by 10 times without affecting maintenance windows.

Real-Time Inventory Management

IoT asset tracking, supply chain management and inventory management systems, AI/ML analytics and IT/OT convergence can help advanced manufacturers improve inventory forecasting for raw materials, works in process and finished goods. This approach can also support lean manufacturing principles. Food producer Kraft Heinz saved $230 million by implementing this type of initiative, which spanned its logistics, manufacturing and procurement departments.

Circular Manufacturing

Manufacturers can use advanced manufacturing systems to recycle materials and remanufacture components, which reduces waste and improves environmental sustainability. Renault, a European car manufacturer, operates a Re-Factory near Paris that uses reverse logistics and remanufacturing technology to refurbish hundreds of thousands of gearboxes, engines, turbos and injectors. This approach is not only environmentally friendly, but the parts also cost 40% less to produce than new parts — yet are tested to new-part specifications.

Drive Manufacturing Excellence With a Unified Solution

As manufacturers invest in smart factory technology, advanced composite materials, laser technology and more, they will need to coordinate those investments and align them with integrated business processes to fully realize the benefits of their advanced manufacturing initiatives. NetSuite for Manufacturing provides organizations with a strong base to do so. NetSuite’s cloud ERP platform offers a single control point to synchronize and manage every aspect of manufacturing operations, from procurement to planning and scheduling, and inventory management to shop floor control and quality management.

NetSuite for Manufacturing also simplifies go-to-market activities, such as customer life cycle management, through ERP modules that add customer relationship management (CRM) and marketing features — among many others that are available.

Advanced manufacturing has transformed the way manufacturers approach the design and implementation of their production, warehousing and logistics operations. Leveraging technology to enhance efficiency and investing in advanced composite materials and innovative production methods, such as additive manufacturing, are hallmarks of advanced manufacturing and will be instrumental in fostering competitiveness in the future.

Award Winning
Cloud Inventory

Free Product Tour

Advanced Manufacturing FAQs

What is an advanced manufacturing program?

An advanced manufacturing program is an initiative that leverages cutting-edge technology, such as robotics, 3D printing or nanotechnology, to help manufacturers enhance the efficiency of production and the quality of their products.

What does an advanced manufacturing engineer do?

An advanced manufacturing engineer plans, organizes and supervises the entire manufacturing process to optimize manufacturing operations.

Why do we need advanced manufacturing?

Advanced manufacturing technology and processes can reduce costs, increase manufacturing output, improve quality control and generally enhance the competitiveness of a manufacturing company.

Is advanced manufacturing a good job?

Advanced manufacturing is a promising career path for tech-oriented engineers and manufacturing professionals.