Manufacturing businesses are under increasing pressure to boost speed, efficiency, and cost-effectiveness in a rapidly evolving economic landscape. A growing number of companies are looking to automation as a solution—and some are even exploring fully automated factories, also known as lights out manufacturing.
The concept? Remove human involvement from production lines and rely on intelligent automation to increase productivity, reduce costs, and enhance output.
What is "Lights Out Manufacturing"?
Lights out manufacturing refers to a production setup that is entirely automated, requiring minimal to no human interaction. These operations depend on a combination of industrial robotics, artificial intelligence, and machine learning, often running with lights literally off—hence the name.
This model collects high-frequency data and uses intelligent systems to manage operations. Although still considered futuristic by some, real-world examples prove that lights out factories are already becoming a reality.
The idea isn’t new. IBM attempted a lights out keyboard factory in the 1980s, and GE launched a largely automated lightbulb factory in 2010. While early examples faced challenges, advances in technology have made newer efforts more viable. For instance, Philips successfully operates an electric razor plant in the Netherlands with just nine human staff focused on quality assurance.
Key drivers behind lights out manufacturing
Several factors are pushing manufacturers towards full automation:
1. Lower production costs
While the initial investment in automation technology is substantial, the long-term savings from reduced labour and downtime can be significant.
2. Enhanced efficiency
Human workers require breaks, shifts, and scheduling. Automated robots, on the other hand, can operate 24/7—leading to continuous output and greater productivity.
3. Improved sustainability
Manufacturing often involves substantial material waste. Automation allows for more precise material use, reducing waste and environmental impact—an increasingly important factor for eco-conscious consumers.
4. Reduced downtime
Human error is responsible for nearly a quarter of factory downtime. Automation reduces this risk and enables predictive maintenance strategies, limiting unscheduled disruptions.
5. Better product quality
By removing inconsistencies and errors introduced by human involvement, factories can produce more consistent, high-quality products. Automated systems also support customisation with greater precision.
6. A safer qorking environment
Automation reduces the need for workers in hazardous environments, lowering accident rates and improving workplace safety.
What’s holding back fully automated factories?
Despite the compelling benefits, several limitations currently prevent widespread adoption:
Financial barriers
High upfront costs for robotics and automation software remain a major obstacle—especially for small to mid-sized manufacturers. In countries with lower labour costs, the return on investment can be harder to justify.
Technological challenges
Automation still faces limitations in connectivity, processing speed, and adaptive learning. Robotics systems must become more flexible and robust before widespread adoption becomes realistic. That said, these challenges are diminishing as technology evolves.
A leading example: Xpeng motors in China
A standout example of lights out manufacturing comes from Xpeng Motors in China. Their 3,000-acre smart factory is powered by over 260 industrial robots that handle tasks like aluminium riveting, welding, and gluing with high speed and consistency.
Notably, the factory has achieved:
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Over 30% energy savings
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Minimal human intervention
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Consistent high-quality outputs
This example demonstrates that the future of smart manufacturing is already taking shape—and it's scalable.
What role will human workers play?
While lights out factories reduce the need for human labour, they don't eliminate it entirely—at least not yet.
Humans will remain essential for:
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Developing and maintaining automation software
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System design and upgrades
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Maintenance and servicing of robotic machinery
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Monitoring operations, particularly in early-stage automation models
As machine learning improves, some of these roles may evolve further. Eventually, software could monitor operations autonomously, only alerting humans when intervention is necessary. Until then, humans will still play a key role—albeit one that demands new digital skills.
Is lights out manufacturing the future?
Despite financial and technical limitations, it's clear that fully automated factories represent the future direction of manufacturing.
As technologies like artificial intelligence and machine learning become more advanced and accessible, the shift towards full automation will accelerate. Manufacturers who invest early in automation stand to gain significant advantages in cost, efficiency, sustainability, and competitiveness.
