BDO: Manufacturers’ shift from optimization to reinvention through Industry 4.0
Manufacturers need to focus on retaining customers, which will require adapting business models to meet changing customer needs and behaviors in the post-Covid-19 world.
BDO recently released its 2020 Middle Market Industry 4.0 Benchmarking Survey, which polled 100 C-suite executives at mid-market manufacturers about their Industry 4.0 strategies and challenges.
The survey was conducted by Rabin Research Company, an independent marketing research firm, just before the Covid-19 pandemic.
Key highlights:
● Early Adopters’ Advantages: Nearly one-third of manufacturers were already implementing an Industry 4.0 strategy at the start of 2020, up 5% from 2019, and the oncoming recession will widen the gap between the early movers and manufacturers that have failed to embrace Industry 4.0
● Standing Out to Survive a Downturn: 41% of manufacturers say increasing market differentiation is a top short-term business objective, which will be key to survival amid increasing competition and commoditization. There are also opportunities for manufacturers to gain competitive advantage in a downturn, such as through gaining strong brand recognition by helping combat COVID-19
● Laying the Groundwork for Recovery: Two-thirds (67%) of manufacturers cite boosting operational efficiencies as a top short-term business objective, which will be crucial to navigating an environment where manufacturers are forced to do more with less
● Catalyzing Long-Term Transformation: Diversifying revenues was cited as manufacturers’ #1 long-term Industry 4.0 objective, per 59% of respondents. However, COVID-19 has fast-tracked this desire to a necessity, and some manufacturers have introduced new products/services to stay afloat and meet new demands introduced by the pandemic, which may become permanent services in the post-COVID-19 world.
● CX Spurs Success: 65% of manufacturers cited improving CX as one of their top short-term business goals, which will be key to navigating a downturn. Manufacturers will need to implement strategies focused on retaining customers and building loyalty, which will require adapting their business models to meet changing customer needs & behavior in the post-COVID-19 world
