A new study led by Purdue University researchers reveals that adopting advanced technologies like AI and smart manufacturing tools isn’t just a technical hurdle, it’s a cultural, financial, and workforce challenge. The research revealed how cultural dynamics, organizational infrastructure, and peer networks shape the readiness and reality of digital transformation on the shop floor.
The findings are clear: Indiana SMMs want to modernize. But to fully capitalize on the promise of advanced technologies, they need support that addresses both the human and technical sides of the equation.
What Drives and Inhibits Technology Adoption?
Based on firsthand input from more than 30 Indiana manufacturers, the study identified four key factors shaping technology adoption:
- Learn From Your Network: Social influence was one of the strongest positive drivers. Manufacturers are more likely to adopt new tech when they hear success stories, see peers’ progress, and have trusted networks to lean on.
- Simply the Process: One of the biggest barriers to adoption was the perceived effort it would make. Many SMMs are stretched thin. Without time, capacity, or dedicated staff, new technology can feel overwhelming, no matter how valuable it may be.
- Build Support: Organizational buy-in, budget, and training systems matter. Without buy-in from leadership and the right infrastructure, even interested teams can stall.
- Make the Business Case: Firms believe technology will boost productivity, but this isn’t always enough to spark action. It often takes real numbers to prove the ROI. However, small wins can build upon each other and accelerate adoption.
Turning Insight into Action:
These insights are a practical guide for building the future of Indiana manufacturing. As the manufacturing industry takes leaps into Industry 4.0 technology, manufacturers may find this transformation overwhelming. It’s important to remember that there are resources and partnerships available to make the digital transformation journey more attainable.
Here is some more information on programs and resources provided by Conexus and its partners to assist small- to mid-sized Indiana manufacturers:
1. Fueling Grassroots Innovation
The Conexus Hardtech Innovators Network builds the kind of peer-to-peer environment this study found so essential. By connecting Indiana manufacturers to each other – and to experts, mentors, and resources – firms can move from interest to action.
2. Reducing the Cost of Entry
Through the Manufacturing Readiness Grant program, Conexus and the Indiana Economic Development Corporation are directly addressing one of the biggest hurdles: cost and risk. These grants give SMMs the runway to pilot new technologies, build momentum, and prove value across their operations.
3. Building Indiana’s New Career Pathway
Fueled by the Richard M. Fairbanks Foundation, Conexus Indiana is forming a coalition of advanced manufacturing and logistics leaders interested in working together to identify the required knowledge, skills and competencies essential for success in key industry roles. In partnership with Indiana educators, the coalition will co-create the Indiana Career Apprenticeship Pathway curriculum, specifically tailored to industry needs.
With a growing culture of innovation and shared learning, Indiana’s manufacturers have the potential not just to keep pace with change but lead the future of the industry. With the right support – peer learning, targeted funding and talent development – manufacturers can overcome the barriers to tech adoption and lead the nation in smart manufacturing.
If you are interested to learn more, you can find the full report here.