Automated manufacturing 101: Everything you need to know

Explainer
March 21, 2025

You’ve probably heard about automation kicking up a storm recently, especially in connection to the manufacturing industry. Picture a factory running in total darkness — no workers, no noise, just machines assembling products with flawless precision. This is the reality at Xiaomi’s fully automated “dark factory” in China, where AI and robotics produce a smartphone every second. 

In this article, we’ll go in-depth into how this type of automation works, and why it’s the bee’s knees. 

We’ll take a look at: 

  • What is automated manufacturing, and what does it look like?
  • Industries and jobs ripe for automation
  • Types of automated manufacturing systems
  • Where are people using automated labor?
  • How small and medium businesses can benefit 
  • Is it megabucks, or actually affordable?
  • Real-world examples of successful automation
  • When is the right time to bring in some robo-help?
  • Are jobs at risk?

Ready to learn the basics? Read on! 

What is automated manufacturing?

Automated manufacturing (aka, automated production) is the use of control systems, such as computers, industrial robots, and information technologies (including artificial intelligence) to handle different processes in the manufacturing of components and products. 

But why do we need automated manufacturing, though?

  • Automated manufacturing optimizes production processes, minimizes downtime, eliminates human error, and improves productivity.
  • To keep up and align with Industry 4.0 principles, which focus on integrating the Internet of Things (IoT), machine learning, and AI, automated manufacturing enhances efficiency and enables data-driven decision-making for smarter operations.
  • Decreased adoption costs and the increased affordability of implementing automated manufacturing technologies have increased competition and these made advanced production strategies a lot more accessible. 
  • Automated manufacturing systems will allow almost every business to experience increased overall efficiency and effectiveness.

What can you automate?

Automation can handle repetitive, dangerous, and mundane jobs. This frees up humans to pursue higher-level, more involved jobs that AI can’t tackle yet. So, let’s examine what automated manufacturing technology can actually handle: 

Assembly
lines

Assembly lines are candidate #1: 

Six-axis robotic arms that can lift, move around, and manipulate parts are perfect
for assembling everything from minuscule electronics to the largest of cars.

Product
testing

Automated systems can test products accurately and objectively. They measure
dimensions, scan for flaws, test functionality, and capture data. 

Packaging

If you have a product to ship, automated packaging systems effortlessly handle
sorting, loading, sealing, labeling, and palletizing.
Pick and place robots cut human
handling to a minimum and skyrocket your loading bay’s efficiency.

Inspection

Advances in automated vision systems, scanners, and sensors can inspect parts
for defects during the manufacturing process. They detect imperfections, measure
components, read serial numbers, and verify information in ways that
the naked eye can’t.

 

Automation in manufacturing isn’t a new thing

Automation in manufacturing actually started centuries ago, with simple machines powered by water, wind, and muscle — think watermills grinding grain, or textile looms spinning fabric without manual labor. Low-tech, but revolutionary at the time.

Industrial Revolutions (1.0 to 4.0)

  • 1st Industrial Revolution (1760 to 1840): Machines replaced muscle with steam power. Suddenly, production was about volume and factories sprang fast. 
  • 2nd Industrial Revolution (late 1800s to early 1900s): Henry Ford dropped his mic with the moving assembly line, turning factories into productivity machines and cars into affordable goods. IBM also notes that the wider use of telephones and telegraphs also furthered this revolution. 
  • 3rd Industrial Revolution (1960s to 1990s): Computers arrived on the scene, and with them, programmable machines and early robotics — think primitive versions of Wall-E minus the personality.
  • 4th Industrial Revolution (Industry 4.0, 2010 to today): AI, IoT, and fully digital factories kicked automation into high gear. Smart machines now communicate with each other in real time.

Major milestones worth talking about 

  • CNC machines (1950s): Computer numerical control turned machine tools into precise, programmable workhorses — this is still critical in factories today.
  • First industrial robots (1961): Unimate, the first-ever industrial robot, started welding car bodies for General Motors. Humans? Suddenly optional.
  • Digital twins (2010s): Virtual clones of real factories let companies test and optimize operations digitally before touching real-world equipment, making mistakes way cheaper.

Core technologies for automation in manufacturing

Today’s manufacturing isn’t just assembly lines and heavy machinery — it runs on tech straight out of a sci-fi flick, except it’s actually real (and profitable):

  • Robotics and robotic process automation (RPA): Industrial robots and cobots (collaborative robots) handle repetitive jobs like assembly, packaging, and machine tending, drastically improving precision and reducing human error.

  • Artificial intelligence and machine learning: AI enables systems to learn from data, adapt on the fly, and predict equipment failures before they happen, saving businesses from ultra-expensive downtime.

  • Internet of Things (IoT) and smart factories: IoT-connected sensors and devices communicate in real-time, which offers continuous visibility and data-driven insights across production lines.

  • Computer Numerical Control (CNC) machines: CNC systems automate precise machining operations like milling, drilling, and cutting, guaranteeing every component is identical down to the smallest detail.

  • Enterprise Resource Planning (ERP) and Manufacturing Execution Systems (MES): These software systems coordinate everything from production scheduling and inventory management to quality control and data analysis — helps with complex operations.

  • 3D printing and additive manufacturing: Perfect for rapid prototyping or producing intricate parts on-demand, 3D printing shortens development cycles and lets businesses innovate faster without the incredibly heavy upfront costs. 

3 types of automated manufacturing systems

Each automated manufacturing system has unique strengths, from hardcore sprinters to adaptable beasts:

  1. Fixed (hard) automation: Built for mass production tasks that rarely change, like car assembly lines. They're lightning-fast but tough (and pricey) to reconfigure if your product line evolves.

  2. Programmable automation: Great if your production needs shift between batches. They’re flexible enough for variety, but switching setups involves downtime. Think restaurant menu changes — not immediate, but doable.

  3. Flexible (soft) automation: AI-powered systems that smoothly adjust to new tasks. Perfect for custom products, small batches, or frequent design changes — like having a factory-sized do-it-all. 

Other than fixed, programmable, and flexible automated manufacturing systems, these systems can also be classified into fully and partially automated systems. Fully automated systems handle everything from start to finish with minimal human intervention. These are best for high-volume, consistent production where robots reign supreme. 

In contrast, partially automated systems collaborate directly with humans. These are ideal when you need flexibility and human judgment combined with robotic precision — the best of both worlds.

Where is automated manufacturing currently used?

Automated manufacturing is currently very popular across several industries, especially those with high-volume production. We’ve outlined some of the most well-known examples below. 

Auto manufacturing

For a while now, major companies have invested in automation. Now, these assembly lines are highly automated, using robotic arms to weld, paint, and assemble vehicles. Only a few human workers oversee the automated systems. The result is much higher volume vehicle production — and way more consistent to boot. 

Electronics

The circuit boards and components in electronics like smartphones, laptops, and TVs are too small and intricate for shaky human hands to assemble flawlessly. Automated precision robots solder connections and place tiny chips onto boards at a scale not even the most eagle-eyed human could match.

Food processing

Chances are, unless you’re getting your nourishment from a homegrown source, you’re consuming food made or packaged in an automated manufacturing chain. These automated systems handle everything from sorting and packaging fresh produce to baking, bottling, and canning goods

Warehouse logistics

Major retailers and shipping companies rely on automated systems to keep their warehouses running. Robotic arms lift and handle palletizing, automated conveyor belts shift goods back and forth, and automated guided vehicles (AGVs) zoom materials between workstations.

Benefits of automated manufacturing for large and small businesses

Automated manufacturing offers huge benefits for both large corporations and small businesses. We know how major companies benefit across the board. But what’s becoming increasingly apparent is that SMEs can also surf the automation wave and win big.

Recent advancements in robotics and AI have made automated solutions way more accessible to the average consumer. This can help smaller companies maximize resources, stay competitive, and scale in previously unheard-of ways. So, what is automated manufacturing good for? 

1. You’ll save money

Automated manufacturing systems: 

  • Lower labor expenses and reduces waste
  • Minimize errors that could lead to scrapped materials or products
  • Operate efficiently 24 hours a day, 7 days a week, without overtime pay or time off

You’ll pay an upfront cost, but you’ll save on maintenance expenses in the long term. 

2. Productivity inevitably goes up

Robots and automated equipment work at a fast, consistent pace and don’t get absent-minded, tired, or complacent. They can assemble products or move materials nonstop, resulting in higher throughput and greater productivity overall.

3. Exponentially safer

Automating hazardous jobs improves workplace safety by removing humans from dangerous situations. Robots can handle toxic chemicals, heavy loads, high heat, and other risky jobs with no problem. This creates a safer environment for all workers.

Robots don’t get pains, aches, or repetitive strain injuries. What’s more, collaborative robots, or cobots, can generally work hand-in-hand with humans unless they operate at a high speed or with dangerous tools. 

4. Increased quality standards

Automated systems produce consistent, high-quality results with minimal errors. They perform the same job over and over with near-zero variation, which helps companies achieve as close to perfect standards as (inhumanly) possible. To top it off, automated inspection systems also spot defects faster and more accurately than human inspectors.

Challenges in implementing automated manufacturing

Automated manufacturing challenges include steep upfront costs, reskilling hurdles, and the chaos of integrating complex systems, all while battling cybersecurity threats and unexpected downtime. Businesses must also navigate cultural resistance, data overload, and long-term ROI uncertainty, which makes strategic planning and adaptability essential for success. Here’s a look at these challenges in more detail:

  • Absolutely more expensive than you think: Robots, smart factories, and automation software aren't cheap. Equipment, installation, sensors, and training costs pile up fast, making smaller businesses hesitant to leap. Thankfully, robots like RO1 by Standard Bots can help businesses bridge this gap.

  • People need new skills: Robots aren't stealing jobs, but they're definitely changing them. Workers accustomed to manual tasks need training to handle automated systems, leading to reskilling headaches for HR departments.

  • Complexity overload: Integrating automated solutions into existing processes can quickly turn into a tech nightmare. Systems from different providers might refuse to play nice, leading to operational downtime.

  • Cybersecurity minefield: Smart factories are connected factories, meaning they're vulnerable to hackers. One breach could halt production or leak sensitive info, making cybersecurity a full-time concern.

  • Small business scalability struggle: Automation usually favors large-scale operations, leaving small businesses feeling like outsiders. Thankfully, flexible systems (like cobots and scalable software) are making automation more accessible than ever.

  • Maintenance never sleeps: Automated machinery demands consistent upkeep. Robots aren't “one and done” — they'll need ongoing maintenance, software updates, recalibration, and occasional repairs to keep production smooth. Keep in mind that this will also cost you extra money.

  • Unexpected downtime: Even with great maintenance, systems fail occasionally. When automation stops, so does production. Having a solid backup plan and a quick response team becomes crucial.

  • Data overload: Smart factories generate mountains of data. Without proper tools or analytics, businesses risk drowning in numbers without extracting meaningful insights.

  • Cultural pushback: Implementing automation means shaking things up. Employees can resist new technology, fearing job losses or dramatic role shifts. Addressing these fears transparently can make transitions much smoother.

  • Long-term ROI patience: Automation is a marathon, not a sprint. Businesses expecting immediate savings might feel let down. Real returns come over time, making patience (and good communication with stakeholders) absolutely essential.

Is it affordable or mega-expensive? 

Over the last few years, advances in robotics and AI have caused automated manufacturing costs to plummet. It used to be prohibitively expensive for most companies, requiring massive capital investments in complex machinery and robotics. What was inaccessible has become commonplace.

Robotics, only now they’re affordable

Robots that can handle repetitive or dangerous jobs are now available at a fraction of the cost. Collaborative robots, or “cobots,” are designed to work safely alongside humans and range from $2,000 to over $100,000, with an average of around $30,000 depending on the model and application. These robots are easy to program (some don’t even require coding knowledge) and are flexible enough to handle a variety of applications.

Software and sensors

Inexpensive sensors and AI-powered programs allow companies to automate processes at reduced costs:

  • Vision systems, proximity sensors, and AI can guide robots or control equipment for precise, automated jobs
  • Cloud-based software can synchronize data from multiple sensors and systems, opening up more opportunities for connectivity and automation

Paying for itself

Automated solutions necessitate an upfront investment. But, most manufacturers find that the increased efficiency, quality, and productivity ultimately end up paying for themselves. This is because automated robots work non-stop, take no breaks, and minimize errors. Higher throughput, shorter lead times, and more all affect customer satisfaction — and the bottom line.

Keep in mind, though, that many automated systems work on a subscription basis and require maintenance. However, these costs are only a fraction of the initial investment and are completely overshadowed by the profits from implementing automation. 

Real-world examples of automated manufacturing facilities

Automated manufacturing is used in many industries today. 

Let’s look at a few real-world examples of companies using automation:

  • Car manufacturing plants are some of the most automated facilities: Robotic arms with multiple joints assemble entire vehicles. Conveyor belts move parts between workstations. AGVs move materials without needing a driver. Giants like Tesla and Toyota utilize highly automated systems to produce hundreds of thousands of vehicles each year.
  • Warehouse operations are one of the big winners of automation: Robotic pick and place systems retrieve items from shelves; automated sortation systems route and organize inventory; many e-commerce companies and third-party logistics providers use automated warehousing to store products and ship them in a flash.
  • Mom-and-pop SMEs and startups are cashing in on automation: Collaborative robots, or “cobots,” work in tandem with human workers to assist in jobs like packaging or assembly. 3D printers can quickly produce parts and prototypes. Automated CNC machining tools precisely make parts from blanks. 

What is the right time to implement automated manufacturing?

What is automated manufacturing, if not an opportunity? But, as with all opportunities, you need to seize it at the right time. We’re tech diehards, so we’re a bit biased, and want to say, “The time was yesterday.” But the truth is that not every business meets the ideal criteria to apply automation. 

Here’s a non-exhaustive list of when you should think about scaling up with a robo-partner: 

  • Labor costs are high: Automation lowers the costs associated with wages, benefits, training, and turnover.
  • Fast-growing product demand: Automation allows you to scale up production to meet increased demand without a proportional increase in costs. You can produce more goods using the same facilities and equipment.
  • You want to free up workers to do more fulfilling jobs: By automating routine, yawn-inducing jobs, you enable human employees to focus on more engaging, value-added work like customer service, innovation, and continuous improvement projects. The net outcome tends to be higher job satisfaction, retention, and happiness. 
  • You’re struggling to hire skilled workers over a period of months: Labor shortages are a real thing, and professions like welding are becoming rapidly understaffed.
  • Quality is a differentiator: And that extra precision will help you stand out in an already overcrowded market. 

Are jobs actually at risk? 

Yes, some jobs are undeniably at risk — particularly those involving repetitive, routine tasks. Factory line workers, data entry clerks, and even some customer service representatives are seeing their roles increasingly handled by machines. However, automation also creates new job opportunities in emerging fields. Many people are divided about whether automated manufacturing creates or destroys jobs. While automation will displace some jobs, new opportunities will likely emerge.

Here’s where automation will spark fresh job creation:

  • Technology development: As automation expands, so does the demand for people who build, innovate, and improve robotic systems. Engineers, roboticists, and tech specialists will be very sought after.

  • Data analysis and AI training: Factories powered by automation generate mountains of data. Analysts and AI specialists who can interpret and leverage this information for smarter decision-making will be totally indispensable.

  • Human-machine collaboration: People skilled at managing, supervising, and collaborating directly with robots will be vital. These roles combine technical expertise with interpersonal skills. In a way, it’s humans managing robots.

  • Maintenance and upgrades: Automated systems don't run themselves indefinitely. Technicians, maintenance crews, and engineers are essential for repairs, software updates, and system improvements. This field alone will grow significantly.

  • Programming and software engineering: Coding will be the backbone of automation, creating continuous demand for software engineers who can design, tweak, and optimize automated solutions.

  • Cybersecurity experts: As automation and IoT expand, protecting systems against cyber threats will be crucial. Cybersecurity roles will skyrocket in importance to keep factories safe and operational.

  • Training and education: Automation brings new skills into the spotlight. Professionals who can train existing employees and educate the future workforce on automation technology will be necessary.

  • Quality control specialists: While robots handle production, human eyes are still invaluable for overseeing quality standards, validating automated inspections, and making sure that processes deliver the best results.

Overall, the net effect on employment will depend on a variety of factors, including the pace of technological change, whether the workforce proves adaptable and the government policies in place.

But, as with previous industrial revolutions, some job displacement is inevitable. But displacement doesn’t mean “erasure.” What is abundantly clear is that automation is creating a complete reshuffling of the board, and (positive) change is on the horizon.

Future trends in manufacturing automation

Future trends in manufacturing automation promise AI-driven smart factories, real-time data processing, and seamless human-robot collaboration, all powered by 5G, edge computing, and machine learning. Sustainability, autonomous supply chains, and mass customization will redefine efficiency, making factories greener, faster, and more adaptable than ever. Here’s what's coming:

  • Factories with built-in brains: AI-powered smart factories will soon self-optimize production, spot potential breakdowns early, and adjust operations on the fly. Downtime won’t stand a chance.

  • Digital twins step into reality: Manufacturers are increasingly using digital twins — exact virtual replicas — to test and perfect their processes before they hit the factory floor. It’s a bit like a factory’s personal test server.

  • 5G will improve factory speed: Ultra-fast 5G connectivity means quicker communication, letting robots react instantly. This leads to tighter quality control, smoother operations, and near-zero lag time.

  • Edge computing is taking the lead: Processing data right where it’s generated cuts delays dramatically. Edge computing helps robots make instant decisions, with near-to-no waiting required.

  • Cobots become true team players: Next-generation collaborative robots will learn directly from their human coworkers. They'll be safer, smarter, and more capable of adapting to new jobs quickly.

  • Green factories are the new normal: Automation will focus more on sustainability, cutting energy use, lowering emissions, and slashing waste. Going green will become standard, not special.

  • Autonomous supply chains keep pace: Logistics automation, from self-driving delivery vehicles to automated warehouses, will optimize how products move, cutting out delays and keeping shelves stocked effortlessly.

  • Robots that learn independently: Machine learning will let robots continuously improve without constant human input. Automation will become smarter and more adaptive over time.

  • Customized production scales up: Automation will soon deliver personalized products as efficiently as it currently handles mass-produced items and yes, making individual customization more affordable.

  • AR bridges automation and humans: Augmented reality (AR) tools will give workers real-time information, detailed instructions, and instant maintenance updates, helping humans and robots work better together.

Summing up

We answered the question “What is automated manufacturing?” conclusively, including how it's totally reshaping businesses of all sizes. Despite doom-and-gloom predictions, robots and machines are only taking over repetitive jobs and freeing up humans to pursue goals according to their highest potential. 

With automation, you’ll experience: 

  • Reduced costs
  • Enormous gains in productivity
  • The reallocation of human labor to mission-critical jobs
  • The possibility to scale your company to previously unthought heights

Next steps with RO1 by Standard Bots

RO1 by Standard Bots, is more than a 6-axis cobot, it’s a way to bring your shop floor into 2025 without breaking the bank.

  • Affordable and flexible: Get top-tier, USA-made performance for half the cost of competitors. Leasing starts at $5/hour, so automation is no longer out of reach.
  • Handles the tough jobs: With repeatability of ±0.025 mm and an 18 kg payload, RO1 can handle assembly, pick and place, CNC machine tending, TIG welding, material handling, and more.
  • AI-driven and ridiculously easy to use: RO1’s no-code programming means anyone on your team can master it. Advanced AI comparable to GPT-4 means smooth operation.
  • Easy integration: RO1 works well with your existing technology and shop floor setup — plus you’ll have expert guidance for our team every step of the way. 
  • Safe to work with: Machine vision and collision detection let RO1 operate safely alongside your team without barriers.

Book your risk-free, 30-day onsite trial today and let RO1 take your jobs to the next level.

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