September 2, 2025
By: Michael Barbella
Managing Editor
Talk about aiming high. Literally.
European aerospace manufacturer Airbus SE is striving to achieve a lofty goal it set for itself more than half a decade ago: doubling output and halving production time.
The target—20,000 fully constructed aircraft over 20 years—would have seemed unrealistic a mere 10 years ago, but technological progress has turned that erstwhile fantasy into a tangible reality. And that reality is quickly transforming the manufacturing process.
Industry 4.0 and the Industrial Internet of Things (IIOT) are turning classic manufacturing plants into smart factories with highly interconnected production systems powered by artificial intelligence (AI) and big data analytics.
One of the newer propellants powering these smart factories is augmented reality (AR), a technology that blends digital content with the physical world in real time. In manufacturing, AR seamlessly incorporates digital technologies into the production operation, enabling workers to perform tasks more efficiently and accurately, reducing the risk of errors, and improving quality control.
Airbus’ introduction to mixed reality manufacturing dates back nearly a decade, but the Dutch firm did not integrate the advancement into its operational workflow until it teamed with Microsoft about five years ago. The company uses Microsoft’s HoloLens 2 headset to help its workers efficiently and ergonomically execute their duties. The headset uses eye-tracking technology to detect the user’s gaze and display relevant content, automatically scrolling as the user reads.
Microsoft’s mixed reality technology has perhaps proven most beneficial for Airbus’ production line staff, as it allows them to access critical data while keeping their hands free. The headset overlays digital information like instructions or diagrams onto real machinery to help workers complete complex or hard-to-reach tasks. Airbus estimates Microsoft’s mixed-reality tool has enabled the company to slash manufacturing time by one-third while simultaneously improving quality.
Mixed reality isn’t only beneficial to humans, though. The technology can augment robotics by revealing a robot’s next move(s) and where a human operator may join in to perform their duties.
Perhaps one of the most valuable uses for mixed reality manufacturing technology is employee training, as AR can narrow the sizable skilled labor gap in medtech by improving on-site training.
AR microscopes can offer assistance in this area as well. Collaboration software enables both trainers and trainees to share the microscope’s vision field so guidance can be provided in real time and annotations and training videos can be added directly in the mutual sightline.
To discover the other benefits of mixed reality and artificial intelligence in manufacturing assembly/automation as well as the other market forces impacting the sector, Medical Product Outsourcing spoke to more than a half-dozen experts over the last few weeks. They included:
- Miguel Ballesteros, senior technical operations manager at Command Medical Products, a medical device contract manufacturer in Ormond Beach, Fla.
- Brett Freeman, president of Providence Enterprise USA Inc., an Irvine, Calif.-based medical device contract manufacturer with operations in China, Vietnam, and Mexico.
- Dave McMorrow, technical director, MMT Automation; and Michael Wall, technical director, MMT/Somex Automation. MMT (Medical Manufacturing Technologies) is based in Charlotte, N.C., and provides automated, process-driven medical device manufacturing solutions.
- Ryan Moran, director of Automation; and Al Neumann, manager, Automation, at SMC Ltd., a Somerset, Wis.-based contract manufacturer of single-use and disposable medical devices.
- Mark Paggioli, sales and marketing vice president; and Brian Romano, director of technology development at Arthur G. Russell Co., a Bristol, Conn.-based developer of tailored assembly machinery solutions.
- David Wolgemuth, molding/manufacturing specialist; and Griffin Doak, automation engineering manager at Phillips Medisize, a Hudson, Wis.-based Molex company. Phillips Medisize is a manufacturing partner for the pharmaceutical, in-vitro diagnostics, medtech, consumer, automotive, and defense markets.
Michael Barbella: What market drivers are impacting medtech assembly/automation trends?
Miguel Ballesteros: The biggest drivers we’re seeing are rising labor costs, the need for more consistent product quality, and a major industry shift toward reshoring manufacturing to the United States. Automation helps mitigate labor shortages, reduce variability, and maintain competitiveness—especially when trying to match the cost structure of offshore facilities.
Barbella: What new innovations have been developed for medical device assembly and automation? What specific market needs to they address?
Ballesteros: Cobots—or collaborative robots—have made a big impact, especially in cleanroom environments where space and flexibility are key. We’re also seeing a lot of advancement in machine vision systems, which can detect defects and validate component orientation in real time, improving both efficiency and product quality. They’re directly addressing labor efficiency, cost control, and the need for consistency. What used to take five operators in a manual manufacturing cell can now often be done with one or two. These technologies reduce the chance for human error and improve throughput without compromising quality.
Barbella: What challenges do medtech companies typically face when scaling automated assembly lines in regulated environments?
Ballesteros: One of the biggest challenges is justifying the cost—especially at low volumes where the ROI takes longer. Regulatory validation becomes much more complex when you automate. Every system variable needs to be accounted for in your OQ and PQ. And of course, you need the right people—skilled technicians and engineers who can support and troubleshoot these systems.
Barbella: How is AI and/or machine learning being integrated into medical device assembly and automation?
Ballesteros: We’re seeing AI integrated into vision systems that detect quality issues like gels in extruded tubing as products come off the line. It’s not just about inspection anymore. In some cases, AI is influencing how the product is actually manufactured in real time, making the process smarter and more adaptive.
Barbella: How has medtech automation impacted workforce skills requirements?
Ballesteros: The workforce needs to be more technically proficient across the board. Operators need to understand electronics, robotics, and mechatronics. Engineers and managers must collaborate to support and optimize these complex systems.