“Automate your production sequence step by step and gain more freedom…Networked, you see more, know more, and get the best out of your production.”
These words are used by TRUMPF Inc. in its TruConnect promotional video in discussing its Smart Factory customized solutions. What makes these words so powerful, particularly for those in the world of manufacturing, is that gaining more freedom and obtaining the best results from production are critical to this sector’s growth.
As the U.S. workforce moves toward digitization, technologies such as TruConnect have become the catalyst for Industry 4.0, which emphasizes connectivity of various, formerly segregated manufacturing processes.
Industry 4.0 has been heralded as the fourth revolution that has occurred in the world of manufacturing, after mechanization, electrification, and mass production. The latest wave of technology involves digitizing vast amounts of data, using connectivity to send and receive that data, employing software that sifts through the data, and using the connected network to further enhance and control process automation. This wave of digital networking has created incredible optimization potential through its effective networking of individual components and systems to drive automation and cost-efficient production.
This revolution has been powered by autonomous systems that leverage data and machine learning to increase efficiencies. Technologies such as autonomous robots, simulation, the industrial internet of things, the cloud, and augmented reality all make up Industry 4.0’s transformation of U.S. manufacturing.
Manufacturing companies now can have access to real-time data while taking control of a more holistic, digitally driven way of controlling the shop floor. From sheet metal fabricating to automated welding, the interconnectivity that Industry 4.0 and its related technologies has provided is an incredible step forward for the industry.
Imagine every piece of data from a shop floor captured, digitized, and compiled for any manager with system access to check progress and production efficiencies on a whim, and you understand the essence of Industry 4.0. Add access for customers so they can track their own orders, and you understand how this enhances customer relations.
Creating a Competitive Edge
Those who work in the tech-savvy industries of manufacturing or fabrication know the razor-thin margins involved with gaining a competitive edge. Industry 4.0 not only offers an upper hand for those who want to garner that competitive edge, it also illustrates perfectly what Congress intended when it enacted tax incentives such as the Research and Development Tax Credit to help spur innovation.
In the 1980s Congress realized the direct impact and potential that U.S. businesses have to help strengthen the U.S. economy and created an incentive to reward businesses that were striving to increase efficiencies and further innovate to compete with companies domestically and abroad. The R&D Tax Credit was enacted to encourage U.S. businesses to innovate and help our country’s economy thrive and remain a worldwide powerhouse. The idea was to reward these U.S. companies for the time and resources exerted to help push their respective industries forward.
The R&D Tax Credit has greatly expanded over the years through judicial activity and legislative changes, including the most recent change, which got rid of the corporate Alternative Minimum Tax (AMT) and curbs the number of passthroughs subject to individual AMT.
