In the wake of U.S. market growth, driven by global logistics shifts and the reshoring of production, smart manufacturing is poised to be a game-changer for sustaining operations in Mexico’s industrial parks. The semiconductor shortage during and after the 2020 pandemic highlighted the challenges facing the industry. While proximity to production centers offers clear advantages, more advanced manufacturing technology is crucial to meet future demands.

The semiconductor industry, with sales expected to exceed $600 billion by 2024, according to Statista, exemplifies the trends that manufacturers must adapt to. McKinsey & Company estimates global manufacturing revenue to hit between $1.2 trillion and $3.7 trillion by 2025, with an annual growth rate of 6-8%.

To remain competitive, Mexican manufacturing is aligning with market trends. This blog reviews six key trends in smart manufacturing, the Internet of Things (IoT), and Industry 4.0 that are critical for Mexico and companies to embrace:

1. Edge Computing
2. Virtual Reality (VR) and Augmented Reality (AR)
3. Wearable Technology
4. Digital Machine Testing
5. 5G Networks
6. Predictive Maintenance

1. Edge Computing

Unlike traditional IoT systems that send data to the cloud, Edge Computing allows data generated in factories to be processed locally, near the source. This reduces the time spent transmitting data to distant data centers, enabling near-real-time analysis that can be used to improve IoT device efficiency.

A prime example is Amazon, which uses edge computing alongside cloud capabilities to directly link demand to production, cutting response times and reducing costs.

2. Virtual Reality (VR) and Augmented Reality (AR)

Whether applied to product design, machinery operation training, safety drills, or equipment maintenance, VR and AR technologies are being leveraged across the production chain. Virtual worlds now replicate physical spaces with greater accuracy, becoming fully immersive.

Moreover, the cost of VR headsets and smart glasses has decreased, allowing manufacturers to use these tools to enhance productivity, efficiency, and, most importantly, worker safety.

3. Wearable Technology

The evolution of IoT has led manufacturers of all sizes to adopt wearable technology, such as smartwatches, into their processes. With advanced biosensors, factories can monitor employee health indicators (body temperature, heart rate, blood pressure), allowing for wellness programs that reduce healthcare costs.

Other potential industrial uses include accident prevention, situational awareness training (to reinforce safety protocols), remote operation of machinery (via VR), and personnel authentication.

4. Digital Machine Testing

As we’ve discussed the impact of digital twins on global manufacturing, these virtual models can also be applied to functional testing of production equipment.

A digital twin is a virtual replica of a product, service, or process that simulates the behavior of its physical counterpart, enabling manufacturers to monitor, analyze reactions to various situations, and improve performance and efficiency.

By feeding continuous data from the real factory into the digital representation of industrial machinery, manufacturers can enhance design improvements and implement preventive monitoring throughout the equipment’s lifecycle. This approach reduces the need for onsite inspections.

The use of digital twins is one of the key recommendations by U.S. authorities to boost the manufacturing industry after the logistics disruptions caused by the 2020 pandemic. In the U.S., nearly 95% of companies are either utilizing smart manufacturing or are in the process of adopting it, according to Rockwell US.

5. 5G Networks

A smart, interconnected factory requires robust and flexible data networks. This is where 5G mobile technology comes into play, enabling automation tools, IoT environments, and artificial intelligence to interact on a wider and more dynamic scale.

Two key 5G features will make this possible: reduced network latency and real-time communication on an unprecedented scale.

Although widespread 5G coverage will be gradual, manufacturers can prepare by designing systems that optimize sensor use, centralized monitoring, and data flow to the cloud.

6. Predictive Maintenance

The ability to prevent production line failures and reduce downtime is incredibly valuable to any manufacturing company. This is the promise of predictive maintenance.

To achieve these goals, companies must systematically collect and analyze their data through industrial IoT analytics to identify patterns and implement solutions before issues arise.

By doing so, manufacturers can optimize real-time maintenance tasks, which leads to two major benefits: uninterrupted operations and extended machinery lifespan.

It’s important to note that for this model to be truly efficient, data must be collected from numerous variables within the factory. This process can be labor-intensive, as it requires reviewing each machine and retrieving past failure data.

At LCA Industrial we support our clients’ growth processes. That’s why our portfolio of industrial parks in Mexico offers tailored project development and the best infrastructure to house innovative global companies. Find out more.