PHOENIX – From lightbulbs to thermostats to doorbells, the items in our homes are increasingly connected and computerized. A similar trend is happening in factories with industrial machines and hardware: The Industrial Internet of Things, or IIoT for short, is ready to transform the world of manufacturing.

IIoT may involve cutting-edge technology, but it’s much more than a “tech upgrade.” It’s a way to improve business outcomes. Through IIoT, manufacturers can analyze and optimize the efficiency of their entire operation. As such, IIoT is a way to upgrade your entire business.

IIoT is slowly becoming more mainstream, but not every industry is taking full advantage of its potential. The manufacturing industry has the most opportunity to benefit from IIoT, but it is a slow mover when it comes to adopting these technologies. At relayr, we help manufacturers collect and analyze data to find patterns, correlations and new ways to be successful. Our technology also uncovers new ways for manufacturing companies to thrive in today’s subscription economy.

This involves a shift from capital expenditures (CAPEX) to operating expenditures (OPEX). For example, look at the cost of operating a big factory or an expensive piece of industrial machinery. Only about 15 to 20 percent of the cost goes to buying that asset. The other 80 percent is operating the asset, as energy, repairs, services and maintenance cost a great deal of money over time.

However, the companies selling equipment are the ones who are often pressured to reduce costs. Nobody is really questioning the service providers as much. If an equipment provider can play in the subscription economy and say, “I’ll give you pay-per-use, and services and maintenance are bundled in that price,” customers don’t have to pay a large sum up front for the machine. Instead, they pay a certain amount per month depending on usage, and the service providers are also responsible for maintaining the machine.

Currently, we’re working with a company called Aluvation, which provides aluminum processing for the automotive industry. That industry hasn’t evolved much over the years — until now. By shifting to a pay-as-you-go model, they are able to guarantee uptime for clients, monitor operations remotely and adjust the production process from a central technology center.

How does this affect Michigan? Well, the Midwest — and Michigan in particular — has always represented the heart of American manufacturing. Over the last few years, there has been a proliferation of new job openings in highly technical fields in the region, but report after report shows there’s a lack of qualified candidates to fill those roles.

There also seems to be a negative connotation, especially among young people, when it comes to pursuing careers in manufacturing. It isn’t seen as an interesting or tech-forward career path, which is untrue. The reality is that manufacturing is a dynamic and rapidly evolving environment for IT professionals who want access to some of the most innovative and advanced technologies out there. Through our technology and our partnerships, we want to help shine a light on the reality – and the promise — of modern manufacturing.

We’ve even partnered with Google to help IIoT startups and small-sized industrial organizations that manufacture, operate and service industrial equipment. The benefits of our program include direct access to relayr’s IIoT experts and offerings, including access to relayr IoT software on Google Cloud. The goal of our “Digital Kickstart” program is to help the manufacturing industry evolve through technology, allowing it to achieve its full digital potential.

After all, everyday items are only going to become more connected – and so will the factories that make them. Manufacturers have a golden opportunity to foster those connections and optimize the future of their operations. And we’re here to help.

To find more information and apply to our “Digital Kickstart” program, please visit: relayr.io/kickstarter

By: Guneet Bedi, vice president sales and general manager Americas, relayr