Despite manufacturers continually introducing more technology to make their operations more efficient, a recent survey completed by Milwaukee-based
Rockwell Automation shows most companies continue to struggle with implementing end-to-end supply chain solutions.
The eighth annual
State of Smart Manufacturing Report surveyed more than 350 manufacturers across 13 of the leading manufacturing countries.
Smart manufacturing, the use of advanced technologies to increase the efficiency of the traditional manufacturing process, continues to change the way respondents think about their companies. The survey found that 84% of respondents have adopted smart manufacturing processes or are actively considering doing so. Adoption rates vary by country, with the top three being the United States at 60%, China at 70% and India at 57%.
More than 50% more manufacturers are using machine learning/artificial intelligence compared to last year.
“Our survey found that 23% of the operating budget is spent on technology, though this investment varies across industries,” according to the report. “Whatever the investment level, budgets must be set with an eye firmly on the future. Manufacturers will need to invest in areas that help to address the skills shortage, while increasing automation, machine learning, and artificial intelligence, in order to fully exploit the potential of technology and insights across the organization.”
The main pain point for manufacturers is a lack of complete supply chain solutions. Despite several years of being impacted by supply chain disruption, and those disruptions being the second biggest external challenge companies expect to continue, the survey found that four out of five manufacturers lack end-to-end supply chain planning.
End-to-end software solutions are designed to help manufacturers keep costs down while managing redundancies. Half of all survey participants are either not using a supply chain planning process or are using manual tools like spreadsheets.
"The lack of visibility faced by those without end-to-end digital supply chain solutions will prove problematic, especially in the face of growing pressure from regulatory bodies, along with audit demands from large customers that now require tracking and traceability transparency," according to the report.
The study found that the two most popular technology investments among manufacturers are process automation and cloud/software as a service. Over the next year, 44% of respondents are planning to increase their investment in cloud technology.
Twice as many manufacturers believe their organization lacks the technology needed to outpace the competition, as compared to 2022.
