Three concurrent trends — converged voice and data capabilities, wireless communications, and network-enabled machinery — are changing the basic infrastructure and interactions of people and manufacturing machinery.

While you may think it would be daunting to tackle just one of these opportunities and challenges, experts say manufacturers can tackle all three at once.

Statistics show that manufacturers are moving forward on all fronts. Research from ARC Advisory Group shows that interest in network-enabled machinery is surging. Total shipments of industrial Ethernet nodes will increase from 840,000 nodes in 2004 to 6.7 million nodes by 2009, the research firm predicts. And with wireless networking capabilities now built into most laptops and some smart phones, demand for remote access to production and operations data is surging as well.

The same applies to IP telephony trends, which include the much-talked-about voice over IP, or VoIP. According to Forrester Research's most recent survey, 45% of enterprises either have deployed or are deploying IP telephony, with another 30% evaluating or piloting the technology. Among all respondents, around half planned to increase their IP telephony spending in 2006.

Arguably, the benefits of so-called converged IP networks (which accommodate voice, data, and wireless communications) apply across many industries. Nonetheless, there are specific potential benefits for the manufacturing industry. Though it is still nascent there, the what, why, and how of converged IP networks reveal a future of increased efficiency and productivity for the globally focused manufacturer.

Converging Benefits

So what are the manufacturing benefits of deploying IP-based telephony, whether wired or wireless? In the latter case, a factory where wiring may be difficult or dangerous to string can utilize wireless capabilities and place equipment wherever it is needed. The only caveat, notes Harry Forbes, senior analyst at ARC Advisory Group, is that manufacturers must be disciplined enough to ensure that network equipment and wireless equipment aren't using the same part of the radio spectrum.

On the wired side, the benefits are even more tangible. Many companies use their IP-based telephone systems — VoIP — for what's known as "toll bypass," transmitting voice communications over an Internet-based network and thus avoiding toll charges for long-distance calls.

"When you're calling state to state, toll bypass isn't that big a deal," says Mark Gregory, a senior consultant for INS, an IT infrastructure consulting firm that recently completed an IP telephony design review for a plant in Costa Rica. "But in foreign countries like China, where toll rates can be 40 cents a minute, you're going to see big cost savings."

Additionally, if a single IP-based network is used for both voice and data traffic, that's one less network the IT department has to manage, which translates into savings on staff resources, time, and monitoring equipment. Ethernet-ready machinery connected to the same network means even more consolidated monitoring capabilities. Gregory estimates the payback period for installing an IP-based network at less than two years.