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Tuesday, November 5, 2024

Michigan invests $8.5 million to create "digital ready" small businesses

Digital

Digital world for small businesses is the idea for the state of Michigan | Stock Photo

Digital world for small businesses is the idea for the state of Michigan | Stock Photo

A sensor that measures vibration and sends alerts when something is wrong on a stamping press could be the next addition to Michigan manufacturing.

A sensor would cost $25 and would allow less time to fix the problem which would increase production. It would be faster to fix the problem through the sensor rather than waiting for a person to correct the issue.

The sensor would help companies like Automation Alley where the CEO Tom Kelly weighed in on the expenses that come with the territory.

“It’s costly to make a mistake in manufacturing,” Kelly told Bridge Michigan.

The Michigan Economic Development Council's vision was to get 6,200 Michigan companies to make investments in "digital ready" enhancements within the next five years, with the MEDC investing $8.55 million to hit their target.

“We know through our extensive research … that Michigan companies continue to be vulnerable to disruption from automation across the manufacturing sector,” said Mark Burton, president, and CEO of the MEDC.

Only 12 percent of companies have invested in the enhancements so far.

“Manufacturing companies need a long-term strategic plan for their digital transformation. But our lean practices, which focus on cost reduction and short-term [return on investment] can become a major impediment to digital transformation,” according to the report. “We must understand that our state is doubly at risk if we stay the course, and companies that don’t adopt a digital mindset will get left behind.”

A midsize manufacturing organization could do $50 million in business but it's common for the smaller companies to have fewer than 10 employees.

“It's not the investment that’s necessarily expensive,” Kelly said. “What’s expensive is if you make it and don’t understand how you’re going to recoup your costs or what you’re going to learn. That’s what prevents [manufacturers] from acting.”

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