South Africa’s manufacturing sector is moving quickly to adopt AI-powered digital automation tools. These tools enhance efficiency, product precision and workforce optimisation.
The manufacturing sector contributes around 13% of South Africa’s gross domestic product. It is forecast to grow at an average rate of 5.7% per year over the next decade.
Statistics South Africa defines manufacturing, based on the Standard Industrial Classification of all Economic Activities, as a group of economic activities involving production through industrial processes. This involves the physical or chemical transformation of materials, substances or components into new products. It also includes various steps, such as assembling parts and components of manufactured products.
Even today, much of South African manufacturing operates manually. Factory owners often rely on analogue “pen-and-clipboard” processes to document the comings and goings of raw materials, parts, equipment, personnel and finished products.
While this system works for many, it reflects the resilience of the businesses, their products and their economic value more than its effectiveness. Imagine how much better these factories could perform. Full digital operations and the adoption of automated factories could make them more profitable and improve employee satisfaction.
Automation in the manufacturing industry
A 2022 University of Johannesburg (UJ) study found that about 50% of large firms, 46% of medium-sized, and 47% of small firms still relied on manual operations with some semi-automation. Around 40% of large, 38% of medium and 46% of small firms used automated and ICT-enabled systems. Meanwhile, 10%, 16% and 7% respectively, were fully digital system-enabled.
According to a 2019 PwC report, digitisation is set to transform the manufacturing industry completely. It first dissolves barriers between functions within operations. Then it connects companies with the outside world in a seamlessly integrated, low-friction environment.
Out of 1,155 manufacturing executives in 26 countries, 30% described their supply chains as using isolated solutions that optimise only individual processes. A further 35% said their internal functions were integrated and collaborated closely. Meanwhile, 18% reported being digitally connected with external partners, integrating platforms for collaboration.
Only 9% of executives claimed near-real-time, end-to-end integration and planning platforms across external networks. In most cases, this full-scale integration happened because companies had what the report calls “digital champions”. These executives possessed the foresight, clout and resources to make key technology investments, track their effectiveness and ensure consistent software upgrades and personnel training.
Technology unlocks efficiencies
For a manufacturing operation that has run successfully for decades, imagining true digitisation can be difficult. Modern manufacturers increasingly use data-driven processing and automation not only for efficiency but also to continuously improve production excellence and precision. They reduce waste and limit product variance, which is essential for sustainable customer satisfaction.
In its Manufacturing Vision Study, Zebra Technologies noted that 92% of manufacturers felt digital transformation became a strategic priority once they recognised its potential. Around 89% agreed that digitisation projects are time, cost and labour-intensive upfront, with a long window to realise ROI. Yet 90% acknowledged that current and future market conditions accelerate the need for digitisation.
The UJ study identified a lack of capital and digital infrastructure as the main barriers to adopting digital technologies. Conversely, human capital, international partnerships, exports, and innovation enhance adoption. By investing in smart infrastructure, training workers and partnering with world-class technology providers, manufacturers can unlock long-term value and move closer to automated factories.
Transitioning to automation
By streamlining workflows and processes, training personnel and tracking assets more accurately, factories can enhance visibility and support workforces for optimised quality. From the very start, raw materials in a factory’s receiving bay can be verified and labelled using connected hand-held devices and printers.
Automation of lineside parts storage facilities improves production efficiency. Materials arrive precisely when needed, preventing interruptions and maintaining smooth operations.
When parts reach the components manufacturing floor, they are 3D-vision scanned and inspected for defects. Monitoring systems proactively adjust production and staffing schedules based on early insights into inventory and supplier demand. Enhanced communication systems boost collaboration across the plant. Remote support solutions and consolidated devices reduce unnecessary foot traffic.
By the time a product reaches quality control, it has been scanned for correct assembly and quality standards. Packaging is recorded for final integrity and adherence to supplier service level agreements before dispatch. Predictive maintenance systems use connected sensors and smart machines to monitor equipment health, forecast potential failures and generate real-time insights. This supports proactive, cost-effective maintenance.
Where does this all point to?
Where does this all point to?While fully automated factories run entirely by robots, like China’s emerging “dark factories”, are still far off, South Africa must first master the basics of connected factories.
By making strategic investments and using integrated solutions from technology providers businesses can evolve from locally successful operations to world-class entities that compete in global export markets.
Fatima Khota | Manager | Business Unit | Point-Of-Sale Division |
Rectron South Africa | mail me |
