Industrial IoT: Empowering Small and Medium Manufacturers – Part 1

Mary Bunzel of Intel Corporation

In the U.S. manufacturing landscape, small and medium‑sized enterprises (SMEs) are a powerhouse of innovation and employment. According to the U.S. Census Bureau (2015), 98.5% (247,961) of manufacturing firms employed fewer than 500 workers—of which 75% had under 20 employees—while these firms accounted for 44% of total manufacturing jobs. Moreover, 96.4% of exporters were small or medium firms, contributing 20.3% of the sector’s $798 billion ($675.33 billion) in exports.

SMEs are the backbone of industrial supply chains

SMEs drive job creation, foster innovation, and are indispensable partners for larger manufacturers. A 2015 report from the Executive Office of the President and the U.S. Department of Commerce titled Supply Chain Innovation: Strengthening America’s Small Manufacturers highlights that dense networks of small and medium producers are the engine of America’s supply chains (pp. 3‑4). Historically, firms produced everything in‑house, but today most focus on core competencies and outsource the rest—often to thousands of suppliers.

Because of this shift, the fortunes of small and medium manufacturers directly influence the resilience of the entire manufacturing ecosystem, especially as advanced technologies like the Industrial Internet of Things (IIoT) reshape production.

U.S. Smart Manufacturing Leadership Act

Terms such as “Industry 4.0,” “digital manufacturing,” and “digital transformation” are frequently used worldwide to describe the integration of automation and connectivity in production. The Smart Manufacturing Leadership Act (S.768 and H.R.3240) offers a clear definition: “Smart manufacturing” refers to advanced technologies—information, automation, monitoring, computation, sensing, modeling, and networking—that digitally (i) simulate production lines; (ii) operate computer‑controlled equipment; (iii) monitor and communicate line status; and (iv) manage and optimize energy productivity and cost across production. It also encompasses (B) modeling, simulating, and optimizing factory energy efficiency; (C) monitoring and optimizing building energy performance; (D) designing energy‑efficient products through digital prototyping and additive manufacturing; (E) connecting manufactured products in networks to monitor performance and automate operations; and (F) digitally connecting the supply chain network.

Recent studies—including MPI’s 2017 Internet of Things report and PwC/MAPI’s survey on monetizing the Industrial Internet of Things—document a rapid uptick in IoT adoption among manufacturers worldwide.

Nonetheless, the deployment of IIoT remains uneven, widening the gap between large firms and smaller ones. The “Smart Manufacturing Leadership Act” aims to level the playing field, ensuring SMEs have equal access to smart manufacturing technologies.

Authors: Mary Bunzel, Director, Manufacturing and Industrial Sales & Marketing Group, Intel Corporation; Alain Louchez, Managing Director, Georgia Tech Centre for the Development and Application of Internet of Things Technologies (CDAIT).

The views expressed in this article are solely those of the authors and do not necessarily reflect the positions of Intel Corporation, the Georgia Institute of Technology, Georgia Tech CDAIT members, the University System of Georgia, or the State of Georgia.