Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) have revolutionized the knitting industry. The 1970s saw the introduction of CAD/CAM systems. Designers used the CAD system to create product designs and these were transferred to CAM machines to manufacture the final product. CAD/CAM technology replaced the mechanical patterning and shaping devices on machines with electronic controls. These systems enabled companies to respond quickly to changes in demand. New designs could be set up using CAD and quickly produced on the CAM machine.

Though manually operated flat and V-bed knitting machines are still used, computerized technology is also preferred.

Initially, this system was expensive and only the major companies could afford it. However, in the 1980s and 1990s CAD/CAM fell in price and even the small and medium sized companies invested in this new technology. The introduction of this technology enabled companies to work globally, and on a fast scale.