Deloitte/MAPI study: smart manufacturing investments continue despite COVID-19 headwinds
Survey finds 62% of leaders surveyed are continuing smart factory investments, allocating 20% more to those initiatives than last year
A new joint survey of more than 850 executives by Deloitte and the Manufacturers Alliance for Productivity and Innovation (MAPI) found that despite deep concerns about operational and profitability challenges tied to COVID-19 disruption, the majority of respondents are continuing investments in smart manufacturing initiatives.
The survey found that 75% of US manufacturing leaders surveyed are most concerned about the ongoing impact of COVID-19 and economic slowdown on operations, and 72% are concerned with meeting profitability goals. Despite these near-term challenges, 62% of leaders surveyed are continuing smart factory investments, allocating 20% more to those initiatives than last year.
The research also found that manufacturing ecosystems are accelerating digital transformation and results, with early adopters achieving twice the revenue growth, digital maturity and new product/service delivery as their peers. Additionally, 85%of manufacturers surveyed believe ecosystems are important or extremely important to their competitiveness.
“While manufacturers continue to face a global pandemic and economic and political uncertainty, manufacturing leaders must continue to adapt and invest in the next steps of their digital journeys. Fully connected enterprises allow manufacturers to expand their capabilities, identify cost savings, and better prepare for the post-COVID era,” said Stephen Gold,
president and CEO of MAPI. “I anticipate the industry will come out of this crisis stronger and more agile.”
The study identified four primary ecosystems that support smart manufacturing initiatives: production, supply chain, customer and talent. Analysis of survey responses found the share of manufacturers pursuing or implementing these ecosystems is 68%, 69%, 51% and 41%, respectively. Overall, respondents acknowledged that they valued working with outside partners and having an ecosystem focus:
- Eighty-five percent of executives surveyed believe production ecosystems are important or extremely important for competitiveness of their business.
- Eighty-five percent of respondents said ecosystems will transform the way manufacturers deliver value and will lead to higher revenue growth and output.
- The top benefits cited were “increasing the pace of new products/services delivery” and “increased revenue from products/services.”
“These ecosystems are driving improvements in agility, efficiency and production at a pace that most companies would struggle to achieve alone,” said Paul Wellener, vice chairman and U.S. industrial products and construction leader, Deloitte LLP. “For manufacturers looking to boost competitiveness, scale their smart manufacturing capabilities and thrive in a post-COVID world, the time to adopt an ecosystem approach is now.”
To find out more about the research, the Deloitte report, “Accelerating Smart Manufacturing: The Value of an Ecosystem Approach,” can be linked to here.
