Why Automation Companies are Choosing to Grow in Michigan

Many of the nation’s fastest-growing jobs are in the tech field, with digitalization and Industry 4.0 in the driver’s seat. Industry 4.0, or the Fourth Industrial Revolution, offers up a range of technology-related roles that are in high demand as businesses adopt new technologies and innovate to stay competitive. 

Michigan has been a leader in American manufacturing since the 19th century with the invention of the automobile. Today, it remains a hub for manufacturing, with the industry adding $102 billion to the state’s GDP and 12,000 manufacturing companies employing 610,000 Michiganders across the state. 

What is Industry 4.0?

Industry 4.0 marks the next phase of digitalization in the manufacturing sector, which includes connectivity, advanced analytics, automation, and advanced manufacturing technology. 

Advanced manufacturing practices facilitate increased productivity and efficiency thanks to the automation of processes, reduced labor costs, and the creation of high-tech products. As manufacturing advances, new job opportunities have been created around the specific skill sets needed for advanced manufacturing and automation. 

Michigan’s Future in Advanced Manufacturing and Automation 

Michigan is a national leader in manufacturing job creation, according to the Bureau of Labor Statistics, and represents the largest sector of the Michigan economy. So, it shouldn’t come as a surprise that Michigan has been at the forefront of manufacturing advancements with the fifth-largest advanced manufacturing workforce in the country. The state is also the national leader for employment in industries related to Industry 4.0 and automation. 

Investing in Advanced Manufacturing

In 2020, Michigan launched its Industry 4.0 Initiative to help prepare small- and medium-sized manufacturers to adopt Industry 4.0 technologies by 2025. In partnership with Automation Alley and the Michigan Manufacturing Technology Center, the initiative aims to support more than 6,000 of Michigan’s small and medium manufacturers. In addition, the Michigan Economic Development Corporation (MEDC) has an Industry 4.0 Technology Implementation Grant program that provides eligible Michigan manufacturers with a 50% reimbursement for qualifying Industry 4.0 technology costs up to $25,000. As of December 2022, 95 companies have received around $2.2 million.

Launching the Nation’s First Industry 4.0 Accelerator 

Michigan is also home to the nation’s first Industry 4.0 accelerator program. Created by Automation Alley, Lean Rocket Lab, and Lawrence Tech’s Centrepolis Accelerator, the program works with manufacturers and technology companies to accelerate Michigan manufacturers’ adoption of Industry 4.0 technologies, increasing global competitiveness. 

Companies Choosing Michigan to Grow Their Automation Businesses

With the state’s dedication to innovation — through grants, initiatives, and education programs — more businesses are selecting Michigan to launch and grow.

Autaza

Autaza, an Ann Arbor, Mich.-based startup, was the first company to receive funding from the Industry 4.0 Accelerator in October 2020. Working to streamline inspections and make them safer, the company uses a robotic quality inspection system and patented artificial intelligence and cameras to detect defects quicker than human inspection. 

Andonix 

Andonix, a manufacturing technology solutions business, is on a mission to empower frontline workers to hold machines and processes accountable and positively impact manufacturing companies. In 2023, the company integrated Open AI into its platform, which connected workers with their machines, allowing them to quickly identify, track, and resolve operating problems. 

“At Andonix, we saw an opportunity to create an AI-powered personal digital assistant called ‘Andi,’ leveraging Open AI’s technology so that workers and staff in companies can prompt and solicit the information they need at any moment to solve problems,” said Oliver Theiss, chief revenue officer at Andonix, in an article. “This all translates into higher levels of productivity.”

Khenda 

Khenda, an AI-powered continuous improvement platform for the manufacturing industry, is in the Industry 4.0 Accelerator. The company, recognizing Michigan’s rich history of innovation, relocated from Turkey to Ann Arbor with help from Ann Arbor SPARK, the city’s economic development program that works with partners like MEDC to support company growth and the creation of jobs. 

KLA 

KLA, a global tech company in the semiconductor industry, opened a second HQ in Ann Arbor and, in 2021, opened a state-of-the-art campus that is home to KLA’s AI and Modeling Center of Excellence. They use cutting-edge AI to detect flaws in chip production. 

“KLA is at the forefront of advancing capabilities, increasing reliability, and eliminating defects in chips, all of which improves automotive electronics and advances autonomous vehicles. Michigan leads the nation in connected and automated vehicle testing projects and legislation. For us, being close to the automotive original equipment manufacturers is an advantage,” said KLA CEO Rick Wallace in an article.

Michigan’s long history of manufacturing innovation and skilled workforce make it a clear choice for automation companies seeking to grow — and thrive — in the era of Industry 4.0.