For Denver manufacturers, efficiency isn’t optional. It’s the only way to stay competitive in a market with 6,000 manufacturing firms that produce more than USD $7.5 billion in exports annually. Challenges include persistent supply chain disruptions that cost companies 6% to 10% of their annual revenue. Skilled labor shortages and escalating cyber threats are no longer temporary obstacles; they are enduring realities.
For Denver’s manufacturing companies, cutting-edge IT infrastructure has become a critical mandate. The good news: Managed services providers (MSPs) are emerging as essential partners, delivering the technology backbone to navigate these challenging times.
In this era of Industry 4.0, generative AI, and Industry of Things (IoT) technology, manufacturers need their IT infrastructures to support uptime, efficiency, security, and compliance. They must integrate new IT systems and unlock insights from a vast array of data, much of it siloed, while coordinating operational intricacies like machine maintenance and process inspections. IT infrastructure is equally critical to Denver manufacturers across aerospace, defense, industrial equipment, semiconductor, biomedical, and energy categories.
Managed IT services offer manufacturers a powerful pathway to greater efficiency. By applying generative AI, they can boost automation, reduce human error, and optimize production. MSPs can also implement and integrate Manufacturing Execution Systems (MES), Enterprise Resource Planning (ERP) systems, and real-time data analytics tools for further benefits from digital transformation.
IT Challenges in Denver Manufacturing
IT challenges around data and systems integration can degrade operational performance. Manufacturers must also deal with production downtime, increased maintenance costs, and security and compliance issues caused by aging IT infrastructure.
Even more concerning are cyber risks like phishing and ransomware attacks:
- Cyber claims in manufacturing are 1.6 times more frequent and 1.2 times more severe compared to the average across all sectors
- Manufacturers represented 20% of all cyber extortion attacks in 2023, which is a 42% increase over 2022 and 17% more than the second most targeted industry (professional, scientific and technical services).
- Vulnerabilities from unpatched or outdated devices and software can provide attackers with a way into your systems—or into your partners’ systems. Supply chain attacks like these are becoming more prevalent. Between 2021 and 2023, the volume of these attacks grew more than fivefold (431%).
Compliance also affects IT infrastructure and cybersecurity. Denver manufacturers must follow an array of regulations, including:
- Colorado Air Quality Control Commission’s (AQCC’s) regulations to limit emissions from manufacturing plants.
- FDA biomedical manufacturing standards.
- Occupational Safety and Health Administration (OSHA) laws around worker safety.
- Environmental Protection Agency (EPA) regulations for oil, gas, and nuclear sectors.
- Local policies on sustainability, waste management, and cybersecurity.
Manufacturers must integrate best practices around these standards throughout their operations, from the factory floor to the administrative offices. Then they must track and monitor their compliance as their IT systems, production processes, and the regulations themselves change over time.
The Role of Managed IT Services in Boosting Efficiency
Managed IT services help manufacturers by streamlining manufacturing processes, enhancing cybersecurity, and implementing/integrating new IT systems (for data analytics and more). These include:
- Automation and other technologies that provide a centralized platform for tracking and managing production. These include ERP systems, IoT devices, robotics, and business intelligence systems.
- Security and compliance risk assessments and penetration testing.
- Data analytics to monitor real-time production data, optimize processes, and forecast demand, maintenance, and inventory needs.
- Proactive monitoring and technology management to prevent downtime and security risks.
Key Features of Effective IT Solutions for Manufacturers
Manufacturers need solutions tailored to current workflows. These solutions should adapt easily to future changes.
Scalable cloud services are a great way to start. Industry 4.0 (smart manufacturing) and cloud computing connect devices with real-time data and analytics. Cloud services provide flexibility, availability, and scalability in managing huge amounts of data generated by manufacturing machinery and systems. SMBs can store data in public clouds, private clouds, or a mix of both plus on-premises systems, for scalability and extra compute power.
When MSPs implement cloud, IoT, and smart manufacturing technologies, they can add efficiencies to manufacturing processes. MSPs have the knowledge to understand not only the features of new technologies, but also how new and legacy systems should work together to create the most efficiencies.
Along those lines, MSPs also offer IT consulting and strategic planning. This could be in the form of innovative solutions like a Virtual Chief Information Officer (vCIO), who functions as an outsourced CIO and offers strategic IT leadership and advice (without the cost of a full-time executive).
When it comes to security, Denver manufacturers also need to protect intellectual property (IP), such as manufacturing designs and other sensitive data, from cyber threats and breaches.
MSPs can provide:
- Advanced Threat Detection systems.
- Data encryption.
- Employee training and awareness programs.
- Regular security audits and compliance checks.
- Incident response plans.
- Disaster recovery plans and testing.
- Regular data backups and redundancy plans.
MSPs can also help Denver manufacturers clean, tag, and classify their data to make sure generative AI solutions base their results only on data that users have permission to see. This provides another level of data security.
Network and server management services can ensure that your systems are functioning at peak performance to support critical manufacturing processes, minimizing disruptions and downtime.
Familiarity with manufacturing software like computer-aided design (CAD), computer-aided manufacturing (CAM), and ERP systems enables MSPs to integrate these solutions with your existing IT systems. Combine this with the flexibility of cloud services, and manufacturers can get more visibility into their data and processes
With these technologies, manufacturers can transform into smart factories, for better quality control, sustainability, and innovation.
Benefits of Managed IT Services for Denver Manufacturers
Manufacturers are seeing measurable results in operational performance from managed IT services and digital transformation. The technologies may intertwine and overlap in providing these benefits, which can be categorized as:
- Reduced downtime and maintenance costs. Instead of waiting for equipment to break, AI and cloud services offer system monitoring, troubleshooting, and predictive maintenance, in addition to efficiencies that can increase machine utilization. And because MSPs are managing your systems, they can send out updates and patches during off hours, to keep the production line moving.
- Increased production efficiency and product quality. This can come via robotics and IoT solutions. For example, integrating robotics, vision, software, and AI solutions can help spot errors and optimize production processes. SMBs can capture real-time data with these systems and analyze it using cloud services and/or AI.
- Consolidating data into a digital thread with these technologies can provide a transparent view into manufacturing systems, enabling more efficient collaboration and decision-making.
- Enhanced data security and compliance with industry standards. Cyberattacks on the manufacturing industry worldwide from 2018 to 2023 have grown alarmingly, which underscores the importance of robust security. Compliance support boosts product quality by aligning processes with industry standards, while also improving data security too. Knowing that your company measures up on quality, security, and compliance means not having to worry about fines. MSPs can identify vulnerabilities in your IT infrastructure and help you mitigate any associated risks.
- Improved scalability to support business growth. Cloud services provide compute power, data storage, and data analysis on a pay-for-what-you-need subscription basis. This provides great scalability on the technical side. On the IT services side, MSPs can also scale, providing expert support on a per-project or per-service basis, without the financial and management overhead of hiring internal IT staff. Since IT planning is a core service, MSPs can help ensure that IT investments align with business goals as you grow.
What BlackPoint IT Services Can Do for You
At BlackPoint IT Services, we help small and midsize manufacturing companies in Denver with expertise and resources to integrate new systems while keeping up with compliance and security. Our IT security experts can guide you in your digital transformation. Schedule a consultation today to get started.
