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KSM Blog | Katz, Sapper & Miller CPA

The Third Industrial Revolution: Transforming Manufacturing

Posted 9:29 PM by



The third industrial revolution is here, and some say it is taking over the global economy. What exactly does this mean for manufacturers?

To truly understand the impact of the third industrial revolution, it is important to consider the significant contributions of the prior industrial revolutions. The first Industrial Revolution focused on replacing human labor with automated processes. These concepts then progressed into the second industrial revolution, which perfected the automated assembly line process to produce mass quantities of identical products. Now, new Internet-based technologies are shifting the focus of manufacturers in a third direction that is creating new product mixes and services.

Manufacturing.Net recently published an article, “Third Industrial Revolution Led By Device Manufacturers,” outlining the results of an IDC/Flexera Software survey report, which reveals that device manufacturers are leading this third industrial revolution by using new software, management systems, and Internet of Things devices to increase customization of product service lines and improve productivity. The survey concluded that these solutions will more than double by 2017. And it’s no wonder – the advantages are innumerable. Goods can be customized to the needs of each consumer, and a platform can be created where multiple products are able to communicate with one another via the Internet. This type of communication benefits both the production process and the consumer by increasing efficiencies and driving down cost.

As the manufacturing industry shifts focus to take advantage of new innovations and technologies, it becomes increasingly important to adjust business models and strategies to conform to these ideas. By investing in these technologies, manufacturing companies will find that they are able to adapt to economic changes and demands of consumers.

About the Author
Julie Boss is a manager in Katz, Sapper & Miller's Business Advisory Group. Julie’s responsibilities include preparing and reviewing financial statements and tax returns, along with advising clients in accounting, reporting and tax-related matters. Connect with her on LinkedIn.

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