People often talk about digital transformation in terms of consumer apps or enterprise software. But some of the most important changes are happening in places that are harder to see, like the factories, labs, and engineering teams that build the physical world around us.
For sectors like manufacturing and advanced machinery, transformation isn't about flashy interfaces or features that go viral. It's about changing how people work together, how they handle complexity, and how ideas move from concept to physical reality. For many years, software was mostly designed to meet the needs of software. Now, it is being rethought to meet the needs of hardware.
This article talks about how modern platforms and tools are changing the way high-stakes industries work and why that change is important, not just for saving time and money, but also for the future of innovation, national resilience, and industrial capability.
How Software Is Changing Hardware
When we think about breakthroughs in hardware like autonomous drones, space vehicles, advanced robotics, etc. we often focus on the machines themselves. What usually goes unnoticed is the growing role of modern software in making these machines possible.
Hardware development relied on spreadsheets, static project plans, and siloed workflows. It was a slow, linear process built around tools never really designed for complex, cross-disciplinary engineering. But as software has evolved, so has its impact on how we design, build, and deploy hardware systems.
The era after World Wars I and II was marked by heavy manufacturing and in the US it was largely fueled by defense manufacturing. We then entered a golden age of digital tools and most of the attention turned to building software for software. It was fast, it was profitable, and it largely sidelined hardware.
Meanwhile, hardware development was often left to either legacy processes or one-off internal tools. Companies had to build their own systems to manage the unique complexity of physical product development, with little support from the broader software ecosystem.
But that’s changing.
Recent years have brought a renewed focus on hardware, driven by both practical needs and high-profile success stories. Companies like SpaceX and Tesla have shown what’s possible when cutting-edge software and ambitious hardware come together. They've demonstrated that building complex physical products in the U.S., and doing it efficiently, is still very much within reach.
There's now a growing awareness that we can't outsource everything, and that revitalizing our manufacturing capabilities is not just a political goal but a technological imperative.
All of this has fueled what some are calling a “reindustrialization.” But unlike the industrial booms of the past, this one is powered by software that’s finally being built for hardware. We're seeing a new generation of platforms and tools designed specifically for the complex needs of engineering teams, helping them collaborate more effectively, move faster, and push the boundaries of what’s possible.
It’s not about replacing people; it’s about giving small teams the ability to tackle big, hard problems. And in doing so, it’s expanding what’s possible in fields that were once constrained by outdated tools and slow-moving workflows.
Read about the role of custom software in smart manufacturing.
Why Software Built for Software Falls Short in Hardware
One of the biggest challenges in hardware development is that the tools many teams rely on were never designed for the job. Most of today’s popular platforms were created with software teams in mind. They're optimized for codebases, bugs, and internal engineering workflows. But hardware brings a different set of problems to the table.
First, there’s the physical reality. Hardware takes up space. It requires materials, parts, and prototypes. If something breaks, you can’t just debug and redeploy as this will result in lost time, money, and a critical piece of your build.
Then there’s time. Unlike software, which can often be shipped continuously, hardware is bound by external lead times. A critical component might only be manufactured by a single supplier, with a multi-month wait. That kind of dependency makes it nearly impossible to run rigid sprint schedules or agile practices without constant compromise.
Compliance is another major hurdle. Many leading software platforms are owned or operated by companies outside the U.S., which presents problems for organizations working in sensitive industries. When you're dealing with defense contracts or regulated manufacturing, your data often needs to remain onshore. That’s not something most mainstream tools are equipped to guarantee.
Perhaps the biggest disconnect, though, lies in collaboration. Hardware is fundamentally multi-organizational. It requires tight coordination between internal teams and a web of external partners—suppliers, vendors, contractors, and integrators. These relationships aren’t just helpful—they’re critical.
Most software tools are built for internal use. They assume that everyone working on a project is under the same roof, with the same logins and the same organizational structure. But in hardware, you’re constantly collaborating across company boundaries, sharing responsibility for components that must come together precisely. You need shared access, real-time visibility, and the ability to track work across organizations. Very few platforms allow for that kind of open, secure coordination.
That gap is what led to the development of tools designed from the ground up for hardware teams that need to collaborate beyond the firewall. Because when you’re building something complex, fragile, and expensive, working in silos just doesn’t cut it.
Can Software Insights Accelerate Hardware?
One of the big promises of modern software is that it won’t just help you do things but it will also help you learn from what you’re doing. For example, if project management software is helping hardware teams manage complexity, can it also generate insights that could feed back into the hardware process itself? Can it actually help companies build better?
Right now, many platforms are laser-focused on being secure, reliable, and collaborative systems. The kinds of organizations using these platforms—such as those in space, maritime, and defense—require intense diligence around data privacy and compliance. So while these platforms absolutely gather process data, they do so with a strong commitment to customer ownership and security.
Imagine being able to anonymously aggregate project data across companies and industries—completely scrubbed of any identifying details—and start to surface trends. That kind of intelligence, fed back into early project planning, could be transformative. It could help teams set more realistic schedules, avoid common pitfalls, and benchmark their progress against anonymized industry norms.
This concept pairs naturally with broader trends around data and AI. Feed enough anonymized, structured project data into a system, and you can start to see where things break down, where bottlenecks consistently appear, and where the opportunities for acceleration really are.
The Digital Backbone of Reindustrialization
Many of the technologies making headlines today like AI, digital twins, model-based engineering etc, aren’t entirely new. What’s changed is our ability to use them at scale. We finally have the computational power, cloud infrastructure, and user interfaces to make long-standing concepts not only possible, but usable by real-world engineering teams.
And that’s unlocking a powerful feedback loop: better tools → faster innovation → more ambitious products → demand for even better tools.
So what are the key tools emerging now, or re-emerging in new, more accessible forms? Here are a few that stand out:
Model-Based Systems Engineering (MBSE)
MBSE has been around for decades, but today it’s finally coming into its own. Instead of relying on static documentation and disconnected design files, MBSE lets engineering teams build dynamic, system-wide models of a product before any physical prototype is made.
For example, an aerospace company designing a next-gen satellite can use MBSE tools like SysML to map out how propulsion, power, communications, and thermal systems interact. When a change is made to one subsystem, the model immediately reflects how it impacts the rest—avoiding integration failures before they happen.
It's a collaborative system simulation, and it's becoming the new blueprint for complex hardware programs.
Digital Twins
A digital twin is a data-driven, live replica of a physical object or process. Think of it as a virtual factory floor or aircraft engine that evolves alongside its real-world counterpart.
By feeding in real-time sensor data, teams can run what-if scenarios, predict maintenance needs, and continuously optimize performance. In industrial settings, this means identifying failure points before they happen, or running thousands of design iterations virtually, long before committing to a costly prototype.
For example, a maritime defense contractor might use digital twins to simulate an entire vessel under different ocean conditions, months before the keel is even laid. That’s a massive leap forward from trial-and-error design cycles.
Cloud-Native Engineering
Traditionally, tools like CAD, simulation environments, and documentation systems were locked behind firewalls and desktop licenses. But cloud-native engineering platforms are changing that.
Tools like Onshape or Kongsberg let cross-functional teams—from mechanical engineers to program managers—collaborate in real time, anywhere in the world. Changes are version-controlled, always up to date, and accessible to both internal and external stakeholders. That’s crucial in an era where supply chains span continents and program timelines are measured in weeks, not years.
Imagine a small robotics company that outsources part of its design to vendors across three time zones. With a shared cloud-native workspace, everyone can work from the same source of truth, without sending files back and forth or waiting for sync-ups. It's speed, clarity, and traceability by design.
Together, these tools form the digital spine of the new industrial economy which is defined not by the size of your factory, but by the speed and intelligence of your tools.
How Solwey Can Help your Business
At Solwey, we have a strong background in custom software development, and we bring industry expertise to every project, delivering software that not only works, but works for you. Whether you work in finance, healthcare, retail, or manufacturing, our industry-specific solutions are tailored to the specifics of your field.
If you’re unsure where to start, we can help you formulate a plan. Just tell us about your challenges and what’s holding you back. We can guide you through finding a solution, whether that means optimizing existing tools or building something new.
Additionally, with Solwey you don't have to sacrifice price to get exceptional service. Our competitive pricing structure ensures that you receive high-quality custom software without breaking the bank. With our agile processes, we can deliver results faster, allowing you to respond quickly to market demands or operational changes.
We place a high value on dependability and customer support. We will be there for you from start to finish, and beyond. Our team is committed to providing seamless support, ensuring that your software runs smoothly and your business runs more efficiently.
Allow us to be your trusted partner in driving your digital transformation. Choose Solwey for quick, adaptable, and dependable software solutions that will keep you ahead of the competition.