When it comes to staying future-ready, it’s all about the insights.
There is no manufacturing future without modernization today. Manufacturing leaders who embrace modernization tools like artificial intelligence (AI), digitization, and data analytics while supporting strategies to implement those technologies will find the competitive advantage they need to lead their industry.
But what is the state of modernization in manufacturing today, and are leaders truly looking to the future or staying static? We surveyed 822 manufacturing leaders for our second annual “Voice of the Manufacturing Manager 2024” to learn more about how they're embracing technology and what benefits they're seeing from modernization. Here's what we found.
To stay competitive and relevant in their industry, manufacturers can't afford to stay stagnant as competitors infuse technological advancements into their production lines and operations. Nor can they simply embrace new technology without knowing how they're using it to advance their goals. Instead, leading manufacturers should have a plan for how new technologies will help move their business objectives forward, how they'll implement and train staff on those technologies, and how to measure the success of their efforts.
Modernization has its benefits. Those who are embracing modernization say it has improved their efficiency, increased their productivity, and improved their quality control.
Today, 53% of manufacturing leaders say their company is “very modern” compared to their industry peers. This means they're embracing new technologies and using them to gain a competitive advantage. However, this also means that 47% of manufacturing leaders say their companies are only somewhat modern or not modern at all—and that stagnation may negatively impact their market position and customer loyalty.
The way to modernize your manufacturing company is by investing in, adopting, and integrating new technologies into your daily operations. Overall, 66% of manufacturing leaders say their company is investing in new technology more than ever, with 33% investing in new technology about the same as they have before. What are the top technologies they're using to modernize their manufacturing?
Data analytics: Manufacturing companies collect a lot of data, and by investing in data analytics tools, they're able to extract insights from that data that can inform future strategies and initiatives.
Artificial intelligence (AI): Manufacturers are continuing to turn to AI to modernize their operations. When asked how they're implementing AI, manufacturing leaders used it most frequently to improve production efficiency, quality control, data sharing, and transparency.
Automation and robotics: Manufacturing leaders are also leveraging automation and robotics in their factories and on the line to streamline productivity, while simultaneously boosting efficiency and streamlining costs. Replacing workers who face dangerous or hazardous tasks with robots can also increase factory safety.
As part of their modernization efforts, 75% of companies surveyed embrace a data-first strategy to gain visibility into how their processes are actually running and performing; smart manufacturers use these data-driven insights to make key decisions quickly. Businesses that adapt a data-first strategy are primed to realize a range of benefits:
Improved customer experiences and loyalty: Because they're using data-driven insights across the supply chain, manufacturers are able to offer improved experiences to customers in terms of better costs, faster turnaround, and more accurate delivery dates.
Faster time to value: With data as the foundation of their operations, manufacturing leaders are able to achieve more value from their efforts in less time—whether via increased throughput, higher cost efficiencies, or shorter delivery windows.
Reduced costs and greater profits: By using data to truly optimize processes and guide strategies, manufacturing leaders are saving money while discovering new revenue opportunities.
There is no manufacturing future without modernization. Leaders who embrace emerging technologies and innovative strategies will uncover more efficiencies and cost savings, enabling a rich future of growth and measurable progress for their business.
Read the “Voice of the Manufacturing Manager 2024” report today.
