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Modern manufacturers are focusing on emerging technologies to gain the competitive advantage.
We know that the manufacturing industry is expanding rapidly in the US, but how are manufacturing managers addressing challenges around the world?
We recently surveyed 1000 manufacturing leaders for our second annual “Voice of the Manufacturing Manager 2024” report to learn more about today's manufacturing successes and challenges. Here are some of the insights we gained from manufacturing managers globally, as well as details on what managers in Australia and New Zealand are prioritising in their daily operations.
To foster continuous growth, manufacturing leaders are making improvements in a variety of areas in their company—specifically in supply chain resilience, technology adoption, and sustainability. Our survey revealed a variety of findings in these areas:.
Technology and Modernisation: Manufacturing companies need to invest in new technologies to keep their organisations modern; this allows them to stay competitive and meet customer demands. However, only half (53%) of respondents say their company is “very modern” compared to others in their industry — which means the other 47% believe that they're lagging. Those who have modernised their organisations say it has improved their efficiency, increased their productivity, and improved their quality control. The good news is that tech investments are on the rise, as 66% say they are investing in new technology more than ever, and 66% also say the integration of innovative technology is a higher priority than ever. In addition, 75% say their company embraces a data-first strategy.
Supply Chain Initiatives: One way manufacturers can hit their targets while increasing manufacturing efficiency is by gaining control over supply chains. Seventy-five percent of manufacturing leaders worldwide say supply chain resilience and sustainability are very important. To improve their supply chain strategy, companies are implementing digital tracking tools for better visibility, adopting sustainable materials and practices, and diversifying suppliers. However, the top barriers manufacturers in Australia and New Zealand face are costs, regulatory challenges, and a lack of technology.
Sustainability: Building a manufacturing company that can grow into the future requires investments in sustainability, and 63% of managers worldwide say sustainability is a higher priority than ever. Additionally, 57% anticipate that their budget for sustainability will increase over the next year.
With 150 respondents in the segment size, adding responses from manufacturing managers in Australia and New Zealand helps provide insights into how their manufacturing challenges and opportunities align with or differ from the global population.
Technology and Modernisation: 71% of manufacturing managers in Australia and New Zealand say their organisation is "very modern”—18% higher than the global response of 53%. Additionally, 72% say they are investing in new technology more than ever while 67% also say the integration of innovative technology is a higher priority than ever, also on par with global manufacturing managers. Eighty-seven percent say their company embraces a data-first strategy—7% higher than the global response of 75%. The technologies businesses turn to most frequently in their daily operations are automation and robotics, data analytics, and AI, all tied at 48% of respondents.
Supply Chain Initiatives: 76% of manufacturing managers in Australia and New Zealand say supply chain resilience and sustainability are very important to their organisation, which is comparable to their global counterparts. Similarly, these businesses are improving their supply chain strategy by implementing digital tracking tools for better visibility and adopting sustainable materials and practices. The technologies manufacturers are choosing most frequently to better manage their supply chain include sustainable energy sources for operations (49%), blockchain (48%, which is 16% higher than global responses), and IoT for real-time tracking (45%, which is 7% higher than the global response).
Sustainability: 72% of managers in Australia and New Zealand say sustainability is a higher priority than ever. a rating that is 9% higher than their global counterparts. Additionally, 66% anticipate that their budget for sustainability will increase over the next year.
Additional Initiatives: Manufacturing managers in Australia and New Zealand are increasing investments to further their growth on the already impressive numbers above. Sixty-nine percent say their budget for hiring new employees and retaining current employees will increase over the next year, putting them 17% higher than the global responses. Seventy-six percent say their budget for investing in new technologies will increase over the next year, which is 10% higher than global responses. 66% say their budget for sustainability will increase, too this is 9% higher than global responses. Finally, 70% of manufacturing managers in ANZ say morale at their company is very high, compared to only 57% globally.
Like their global counterparts, manufacturing managers in Australia and New Zealand are positioning their organisations for success—significantly so, as they’re jumping ahead of global numbers in most areas—by integrating new technologies, taking action to strengthen their supply chains, and making investments in sustainable policies and practices. By addressing challenges in these areas, they can increase their competitiveness on the global stage for years to come.
Read the “Voice of the Manufacturing Manager 2024” report today.
