Creating a modern workplace can give you the competitive edge.
Technology is the main driver that is transforming manufacturing companies for the better, as those who invest in technology see a 10% to 12% gain in output, utilization, and productivity. Yet are manufacturing organizations utilizing technology to its fullest while staying at the cutting edge of tech innovation on their factory floors and in their back offices?
To learn more about the manufacturing successes and struggles businesses are facing today, we combined insights from 1,400 manufacturing leaders and 1,200 manufacturing workers globally to create the “Future of Work in Manufacturing” report. Here are the key insights we learned about technology adoption and implementation.
Technology has the potential to transform manufacturing by accelerating processes, helping drive decision-making, and making factory settings safer. Yet technology evolves quickly, and manufacturing leaders who linger on the edge of full-on adoption will find themselves falling behind their competition, losing customers, and even losing workers.
However, manufacturing companies may not be as technologically advanced as they should be, according to those who work there. In 2023, only 48% of manufacturing workers rated their workplace as “very modern.” Even more striking is the fact that in 2024, only 39% rated their workplace as “very modern” — a 9% drop.
Obviously, this means that manufacturing workers aren't seeing technological advancements around the warehouse or in the factory—even as they take similar tech for granted at home and in their leisure time. Your workers are likely already interacting with AI, digitization, 3D printing, and even augmented reality outside of work, and they may feel like they're stepping back in time when they punch in to a lower-tech work space each day.
When manufacturing managers are asked about how modern they believe their company is, 58% of manufacturing managers rated their workplace as “very modern” in 2023. Yet in 2024, just 52% rated their workplace as “very modern”—another 6% drop. However, these numbers are still much higher than those from manufacturing workers.
Why the disconnect? Are workers seeing something different than their managers? Since managers are likely driving technological adoption, they may be more aware of their modernization efforts than workers are. However, if workers are not seeing those modernization efforts around them, manufacturing leaders may need to do more messaging to get the word out about these new technology initiatives.
Despite the numbers around modernization, technology investments are increasing. According to our report, 45% of manufacturing workers said their company is investing in new technology more than ever in 2023; in 2024, 49% said the same—a 4% increase.
When it comes to which emerging technologies they’re investing in, workers and managers mention these common top innovations:
In 2023, managers used cloud computing, while workers used augmented reality; in 2024, managers added automation to the mix.
Although those technology investments are expected to continue, only 50% of manufacturing workers said their company is eager to embrace new technology in 2023, and in 2024, 48% said the same. What will it take for manufacturing leaders to become industry leaders in technology adoption?
Increasing your modernization and technology adoption begins by evaluating your business goals and assessing how technology can help move them forward. For example, don’t adopt AI because everyone else is doing it—instead, adopt AI so that you can better analyze your data or use it to improve your processes on the factory floor.
Start by digitizing your documents and moving away from paper so that all your contracts, reports, and shipping bills can be accessible to anyone, anywhere. Then gather all the data from across your organization into a centralized hub like an ERP, so that you have full visibility into your operations and can use that data for insights and decision-making. Modernization can also include adding Internet of Things (IoT) devices to your factories and across your supply chains to give you more transparency into shipments and operations.
Your implementation plan for technology should include not only integrating it into your current systems, but training your workforce on how to use and manage these new capabilities every day. This is where providing upskilling initiatives can help your workers develop the proficiencies they need to help your business modernize and evolve.
Staying competitive in today’s growing and changing industry is dependent upon how committed you are to the technological evolution of your organization. By adopting new technology and making sure your workers are trained on it, you’ll prepare yourself for the future of manufacturing today.
