by April Miller
Industrial engineers, plant managers and other technical professionals have slowly realized how pivotal factory site selection can be when planning Industry 4.0 infrastructure buildout. Every area has unique requirements for deploying these assets. These factors are the most vital to consider before committing, especially if installing technologies related to artificial intelligence (AI) or smart factory tools.
Uninterrupted Power for Constant Production
Planners can select a remote factory location or a site closer to transportation hubs to improve access to their customers. Both have their pros and cons, but given the energy demands and utility pricing variability of automation technologies, robotics and AI, this could influence decision-making.
The power requirements of these assets can vary widely, leading to sharp peaks and fluctuations and potential outages if the grid is overloaded. Organizations must also consider the potential for an outage, during which most production could cease indefinitely until systems are back online. Establishing infrastructure stability before factory site selection is essential.
Staying near established, robust energy infrastructure could provide peace of mind, whereas remote locations could enable construction of a customized, on-site grid fully controllable by the facility. It could also use renewables instead of relying on the primary grid’s sources.
Additionally, to avoid costly downtime and equipment damage, battery energy storage systems or generators are necessary for maintaining uninterrupted power and improving sustainability. Redundancy will ensure high uptimes and preservation of expensive smart factory tools.
The Insatiable Appetite for Data
Only some locations are equipped with the infrastructure and resources required to collect, process and store the seemingly infinite amount of data that a smart factory needs. Sites are using AI-powered predictive maintenance and automated employee scheduling, among countless other smart tasks.
The site must meet facility needs and also be scalable. Otherwise, the location and its equipment become antiquated before a company has a chance to leverage automation tools to their fullest potential.
Sites need access to high-speed connectivity, such as fiber optics, that promises low latency and constant uptime. Also, manufacturing facilities may need reliable high-speed connectivity and on-site or nearby edge infrastructure to process smart factory data close to where it is generated/ This reduces latency and improves real-time responsiveness through Industry 4.0 technologies. Without the bandwidth and reliability, facilities will experience more burdens than benefits when incorporating advanced tools.
The Smart Factory’s Digital Foundation
Fortunately, manufacturing-based real estate is projected to experience reliable growth over the next three to five years, with only short-term macroeconomic considerations causing fluctuations. This makes most decisions easier to process, but stakeholders must acknowledge the big picture. Factory site selection requires seeing the location from multiple angles — the physical square footage of the land and the potential within the facility walls.
The structure must be able to house and protect countless sensors, devices, wires and other connections to facilitate low-latency, high-density wireless communication infrastructure. Additionally, everything within the facility must be designed to safeguard these Industry 4.0 assets against physical and digital cybersecurity threats.
The Industrial Internet of Things (IIoT) must be the backbone of the site’s design from the inside out. External access to data centers and consumers is ideal, but if the inner workings are insufficient, inefficiencies will trickle down through operations.
Sometimes, this means creating a private 5G wireless network. In this case, the region must have a regulatory environment that enables organizations to deploy them. Without this ability, organizations will have less flexibility to scale or personalize their operations with their bespoke automation tools and equipment. Private networks enable faster response times, even for the largest-scale data transmission needs.
Geographic Advantages Beyond Traditional Logistics
Proximity to markets and transportation remains a crucial criterion for site selection. However, other geographic logistical factors have become increasingly important alongside these considerations. Companies will want to be within close reach of:
- A skilled and diverse workforce.
- A favorable regulatory environment, with clarity on issues like cybersecurity and environmental legislation.
- A culture with buy-in to Industry 4.0 innovations and beyond.
These metrics may be more challenging to gauge compared to a site’s price or square footage. However, they could be the factors that encourage long-term growth and competitive advantage, maximizing the value of any financial investment made in automation tools.
Factory Location and Its Relationship to Organizational Longevity
Industry 4.0 and beyond will demand that everyone consider site selection in greater detail, from construction professionals to C-suite executives. When everything from energy to labor is augmented by automation and smart technologies, traditional setups and site planning processes become obsolete, requiring stakeholders to adapt and evolve. The next era of manufacturing will design infrastructure on sites with these innovations in mind to stay stable and connected for years to come.
