Voice of the Manufacturing Manager 2024 Part 1: Technology and Modernization

65% are investing in new technology more than ever

65% of respondents report increased investment in new technology compared to last year, up from 55% in 2023. This indicates a clear trend toward technological adoption as manufacturers prioritize modernization to stay competitive. Only 33% say their investment remains the same, and just 2% are investing less than before.

State of investments in new technology over the past 12 months:

51% say their company is “very modern” compared to others in their industry

51% of respondents believe their company is “very modern,” a slight decrease from 58% in 2023. An additional 44% say their company is somewhat modern, while 5% view their organization as not modern at all. This decline suggests the competitive landscape is shifting, with modernization efforts remaining vital.

Compared to other companies, how “modern” would you say your operation is?

Top Five Modern Technologies and Tools

The leading technologies adopted by modern manufacturers are data analytics (60%), AI (57%), automation and robotics (46%), cloud computing (40%), and IoT (34%). These percentages have remained relatively consistent with 2023 findings, reflecting the sustained focus on data-driven decision-making and automation in the industry.

Which modern technologies and tools is your factory using? [Select all that apply]

Top Five Modernization Improvements

Manufacturing modernization has led to notable improvements: 30% report increased efficiency, 24% improved productivity, 16% improved quality control, 12% reduced costs, and 10% enhanced safety conditions. These trends align with 2023 results, where similar priorities were identified, though improvements in quality control have seen a slight increase.

What is the #1 improvement modernization has brought to your company?

Top Four Areas of AI Implementation

AI is primarily used in quality control (55%), production efficiency (54%), data sharing and transparency (51%), and forecasting and inventory management (50%). This closely mirrors the top areas of AI use in 2023, demonstrating a continued reliance on AI to streamline production and enhance data transparency.

Has your organization implemented AI to improve any of the following areas? (Select all that apply)

42% see future opportunities for AI

42% of respondents expect future opportunities to implement AI, down slightly from 45% in 2023. Meanwhile, 23% do not see any AI potential, and 35% are undecided. This indicates that while AI adoption is advancing, there remains uncertainty in certain sectors about its future applications.

Do you see opportunities for Artificial Intelligence to be implemented at your organization?

Potential Areas of Application for AI

When asked to elaborate on the potential applications where AI could be implemented, respondents answered with the following, in their own words:

Inventory:

• Inventory management would benefit from AI.
• AI would help with inventory being more accurate and save time as well.
• SKU rationalization and inventory management.
• Managing inventory and offset.
• Finished product to inventory before shipping.

Planning and Forecasting:

• This could be worked into our forecasting models.
• Learning/predicting trends in the marketplace to prepare better.
• Planning, problem solving.
• Can be implemented in the planning phase with the ability to determine the availability of raw materials through purchasing and quality systems.
• What plant to build to maximize use of resources.
• Forecasting consumer demand.
• It can be used for R&D purposes as well as optimizing our supply chain and manufacturing capabilities.

Supply Chain:

• Monitoring supply chain issues.
• To establish a better supply chain response.
• Managing supply chain.

Productivity:

• We use sufficient palletizer robots, but a better AI could increase productivity and decrease safety issues.
• It could be used for streamlining administrative tasks.
• Automation of some mundane tasks.
• We have started some RPA work but I know there is a lot more that can be done.
• Could be used to simplify the more tedious elements.
• Control work.
• AI could be implemented in the product control area.
• It would make our jobs a lot easier.
• Plenty of opportunities to improve efficiency by using AI by reducing repetitive work.
• Communication.

Data Management and Analytics:

• Better data management.
• Data visualization and reduction of repetitive tasks.
• We could use AI to help with data analysis .
• It could be used to do analytics for the company, saving us time and money!

Employee Training:

• AI would be of help for the proper training of our employees.
• HR offices.
• AI could be helpful for training.
• AI could be implemented in the process of employee selection.

Customer Ordering:

• Automatic purchases.
• Order processing.
• Probably when customers want to order products.

75% say their company embraces a data-first strategy

75% of respondents say their company embraces a data-first strategy, an increase from 67% in 2023. This shift highlights the growing importance of data in decision-making processes, helping companies streamline operations and achieve better outcomes.

Would you say your company embraces a “data-first” strategy?

Top Three Benefits of a Data-First Strategy

Among respondents whose companies embrace a data-first strategy, 26% report improved customer experience and loyalty, 22% cite faster time to value, and 20% point to reduced costs and greater profits as key benefits. This is a notable increase in the recognition of cost-related advantages, up from just 6% in 2023, reflecting the growing impact of data-driven strategies on operational efficiency and profitability.

What has been the biggest benefit of your data-first strategy?