Placing Pieces in the "Industrial Internet" Era: U.S. Industry 4.0 Focuses on "Soft" Power
In the U.S., the concept of "Industry 4.0" has largely been replaced by "Industrial Internet," though despite the different terminology, both concepts share the same core idea: connecting virtual networks with physical systems to create more efficient production frameworks.
In the U.S., the concept of "Industry 4.0" has largely been replaced by "Industrial Internet," though despite the different terminology, both concepts share the same core idea: connecting virtual networks with physical systems to create more efficient production frameworks.
From a policy perspective, after the financial crisis, the U.S. government elevated the development of advanced manufacturing to a national strategy, aiming to reshape the manufacturing sector with new, revolutionary production methods. At the industry level, the establishment of the Industrial Internet Consortium—a leading industry organization—marked the official start of businesses entering the era of Industry 4.0. Unlike Germany, which emphasizes "hard" manufacturing, the U.S., with its robust software and internet-driven economy, is placing greater emphasis on driving the next wave of industrial transformation through "soft" services. The goal is to leverage the power of the internet to revitalize traditional industries, ensuring long-term competitiveness in manufacturing.
Government strategy drives innovation
To counter the new wave of technological industrial revolution and secure a leading voice in global industry competition, the U.S. has made reviving its manufacturing sector its top strategic priority in recent years. Following the financial crisis, the U.S. government introduced a series of landmark legislation aimed at establishing cutting-edge Manufacturing Innovation Research Centers. The goal is to leverage advanced technologies to modernize traditional manufacturing industries, ultimately helping the U.S. economy regain momentum toward sustainable growth.
In April 2009, newly inaugurated U.S. President Obama delivered a speech outlining his vision to revitalize manufacturing as a key long-term strategy for the nation’s economic growth. Later that December, the U.S. government unveiled the "Framework for Revitalizing American Manufacturing," which provided a comprehensive analysis of the theoretical foundations and competitive advantages driving the manufacturing revival—and served as a strategic blueprint for advancing U.S. manufacturing efforts. Building on this framework, the Obama administration systematically rolled out its initiatives, carefully mapping out both strategic priorities and actionable steps, ultimately culminating in the successful implementation of the Manufacturing Innovation Initiative.
In June 2011, the United States officially launched the "Advanced Manufacturing Partnership," aimed at accelerating its dominance in advanced manufacturing for the 21st century. In February 2012, the country further introduced the "National Strategic Plan for Advanced Manufacturing," which seeks to encourage manufacturing companies to return to U.S. soil through proactive policies. The plan revolves around two key priorities: first, restructuring and enhancing the competitiveness of traditional manufacturing sectors; and second, fostering the growth of high-tech industries. It emphasizes advancing cutting-edge digital manufacturing technologies, such as sophisticated production technology platforms, innovative manufacturing processes, and robust design and data infrastructure systems.
In March 2012, Obama first proposed the establishment of a "National Network for Manufacturing Innovation," aiming to create up to 45 research centers that would foster seamless collaboration among academia, industry, and government in advancing cutting-edge manufacturing technologies. In January 2013, the U.S. President’s Office of Management and Budget, the National Science and Technology Council, and the National Office of Advanced Manufacturing Projects jointly released the "Preliminary Design for the National Network for Manufacturing Innovation," announcing a $1 billion investment to launch the U.S. Manufacturing Innovation Network (NNMI). This initiative is focused on driving innovation in advanced manufacturing fields such as digital fabrication, renewable energy, and next-generation materials, ultimately helping to build a series of innovative manufacturing clusters equipped with world-class capabilities.
The key research areas of this innovative network include: developing lightweight materials such as carbon fiber composites to enhance fuel efficiency, performance, and corrosion resistance in next-generation vehicles, aircraft, trains, and ships; refining standards, materials, and equipment related to 3D printing technology to enable cost-effective, small-batch production through digital design; and creating frameworks and methodologies for smart manufacturing that allow production operators to seamlessly access "big data streams" from fully digitized factories in real time—ultimately boosting productivity, optimizing supply chains, and improving the efficient use of energy, water, and materials.
Over the past two years, the aforementioned plans have been gradually rolled out. In August 2012, the U.S. government and private sector jointly invested $85 million to establish the "National Additive Manufacturing Innovation Institute." In May 2013, the U.S. government announced the allocation of $200 million in federal funding to launch three new manufacturing innovation hubs: the "Lightweight and Modern Metals Manufacturing Innovation Institute," the "Digital Manufacturing and Design Innovation Institute," and the "Next-Generation Power Electronics Manufacturing Institute." This February, a fourth center focused on composite materials manufacturing was also established.
According to the "Global Advanced Manufacturing Trends Report" released by the U.S.-based Wilson Center, the United States ranks first in the world in terms of R&D investment, with three-quarters of that funding directed toward manufacturing. The country holds significant advantages in advanced manufacturing sectors such as synthetic biology, advanced materials, and rapid prototyping. Analysts believe that, driven strongly by both government initiatives and private-sector efforts, the U.S. is poised to experience a new wave of technological innovation—marked by full wireless network coverage, extensive adoption of cloud computing, and the large-scale expansion of smart manufacturing.
Industry alliance breaks through technological barriers
Unlike Germany’s Industry 4.0, which emphasizes “hard” manufacturing, the U.S.—a global leader in software and the internet economy—is focusing more on driving a new wave of industrial revolution through “soft” service sectors. The country aims to leverage the power of digital networks and data to enhance the overall value-creation capabilities of industries. In essence, the U.S. version of Industry 4.0 is essentially an "Industrial Internet" revolution. And throughout this process, in addition to supportive government policies, the proactive formation of industry alliances has emerged as a key driver of progress.
The concept of the "Industrial Internet" was first introduced by General Electric in 2012, after which five leading U.S. industry giants joined forces to establish the Industrial Internet Consortium (IIC), actively promoting the idea across the board. In addition to manufacturing giants like General Electric, the alliance also includes IT companies such as IBM, Cisco, Intel, and AT&T.
The Industrial Internet Consortium operates on an open membership basis and is committed to developing a "common blueprint" that enables seamless data sharing among devices from different manufacturers. This blueprint’s standards go beyond just Internet network protocols—they also encompass metrics such as data storage capacity in IT systems, power levels for both interconnected and non-interconnected devices, and data traffic control mechanisms. The ultimate goal is to break down technological barriers by establishing universal standards, leveraging the internet to revitalize traditional industrial processes, and ultimately fostering a deeper integration between the physical and digital worlds.
Although establishing and finally approving the aforementioned standards may take several years, once these standards are in place, they will empower hardware and software developers to create products that are fully compatible with the Internet of Things. Ultimately, this could lead to the seamless integration of sensors, networks, computers, cloud computing systems, large enterprises, vehicles, and hundreds of other types of entities—driving a comprehensive boost in efficiency across the entire industrial value chain.
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