AI for Small Manufacturers: Practical Paths, Real Value
by Shawn Furman
Director, Automation and Manufacturing Technology Strategy
When people think about artificial intelligence (AI), they often picture high-tech labs, huge budgets, and tech giants. But what if AI could quietly — and affordably — help small to mid-sized manufacturers (SMMs) improve their operations? For many SMMs, AI still feels out of reach. It’s seen as expensive, complex, or simply not made for the real-world challenges of smaller shops. But behind the hype, AI offers practical, attainable value — and it’s more accessible than ever.. This post explores why SMMs are hesitant about AI, what it can do for small manufacturers, and how to get started without breaking the bank.
Why So Many SMMs Are Hesitant About AI
Despite growing interest, small and mid-sized manufacturers face real barriers to AI adoption:
- Cost concerns: AI is often seen as a high-cost investment with unclear returns.
- Limited in-house expertise: Few SMMs have data scientists or IT teams on staff.
- Unclear ROI: It’s hard to justify investing without proven, relatable examples.
- Fear of complexity: AI can seem abstract or “too advanced” for day-to-day operations.
“We’re still trying to get good data from our machines — AI feels like a luxury we can’t afford.”
— A typical small manufacturer
What AI Can Actually Do for SMMs
AI doesn’t have to be about fully autonomous factories. For SMMs, it’s about solving problems more efficiently. Here are five practical, proven use cases that require minimal overhead:
- Predictive Maintenance
Machine learning tools can spot early warning signs of equipment failure — saving downtime and reducing maintenance costs
Example: A small garment factory used AI to monitor machine sensor data and reduced downtime by 50%. This was accomplished using off-the-shelf IoT devices and cloud analytics tools. - AI-Driven Quality Control
Computer vision can identify defects in products far more consistently than manual inspection.
Example: A pet food manufacturer implemented AI-enabled cameras to automatically reject miscolored or undercooked feed, increasing consistency and reducing labor costs. - Smarter Demand Forecasting
AI can analyze order history, seasonality, and customer patterns to better predict inventory needs. Tools like Microsoft Copilot, Google Vertex AI, and ERP add-ons now offer AI-driven forecasting capabilities — often with no-code interfaces. - Energy Optimization
AI helps identify energy waste and optimize equipment use, cutting operating costs.
Example: A plastics manufacturer used AI to monitor and optimize compressed air systems, reducing peak energy usage by 15%. - AI-Powered Support Tools
Chatbots and virtual assistants can automate routine communications with customers and suppliers. These tools are increasingly built into CRMs, ERP platforms, and cloud helpdesk solutions.
Documented Success Stories from the Field
While large-scale AI deployments are common in big companies, there’s growing evidence that small manufacturers are achieving meaningful results:
- A small garment manufacturer implemented predictive maintenance using AI and IoT devices. The result: a 50% reduction in machine downtime.
- A plastics shop featured in industry case studies used AI-powered energy optimization tools to monitor compressed air systems. The result: 10–15% energy savings without significant infrastructure changes.
- Many mid-sized facilities have adopted plug-and-play solutions which use machine learning to analyze machine health and predict failures — no data science team required.
These examples show that SMMs don’t need massive infrastructure to benefit from AI. Success comes from identifying targeted, high-impact areas and building from there.
How to Get Started: A Practical Path for SMMs
You don’t need to be an expert to try AI. Here’s how small manufacturers can explore it safely and affordably:
- Start with a problem, not a platform
Focus on pain points — like scrap, unplanned downtime, or poor forecasting — and explore AI as a solution. - Use the data you already collect
Your machines, PLCs, SCADA, or ERP systems already hold valuable data. AI helps make sense of it. - Partner locally
MEP centers, like MRC, can help you find pilot programs or grant-funded support. - Look inside your existing software
Many popular ERP, CRM, and MES tools now include built-in AI features. - Keep it small and scalable
Run a small proof of concept. Learn what works. Then expand.
Conclusion: AI Is for You, Too!
AI isn’t about replacing people or revamping your plant overnight. It’s about helping your team work smarter, improve quality, reduce waste, and boost uptime — all with tools that are becoming more accessible every day. Start small. Solve real problems. And let the results speak for themselves. The technology is here. The tools are ready. And the opportunity is yours to take.
About the Author
Shawn Furman
Shawn, Director, Automation and Manufacturing Technology Strategy, mentors MRC manufacturers to lead and guide them in advanced technologies that enhance quality, boost productivity, encourage innovation, and reduce production time. Today that also includes digital transformation, automation and robotics, and IT integration that enables innovation and smart manufacturing, driving extraordinary outcomes for customers.
Manufacturers who want to learn more and to discuss Process Improvements, Advanced Manufacturing Technology resources and Implementations, please call Shawn at (610) 737-2529 or email him at shawn.furman@mrcpa.org