Study Reveals Major OEMs Reduce Recovery Time and Increase Profitability via Resilience Strategies

Key Insights from the OEM Advantage Guide

Rockwell Automation has unveiled a significant study detailing how major Original Equipment Manufacturers (OEMs) are navigating an increasingly complex operational landscape. This global research, labeled as the "OEM Advantage Guide", gathers insights from 500 leading OEMs across 17 countries to reveal how they enhance their performance and resilience.

Context and Importance of the Study

In a world where labor instability, supply chain volatility, and rising costs are prevalent, many OEM leaders are adapting their operational strategies. They are not solely focused on raw performance; rather, they emphasize quick recovery times, operational consistency, and data-driven decision-making processes.

Recovery Time as a Profitability Lever

One of the standout findings of the study is that leading OEMs have significantly improved their recovery times, reducing them to 24 hours or less, compared to the industry average of 40 hours. This shift is crucial, as average downtimes are reported to cost companies around $3.6 million. By designing machines equipped to detect issues early on, these OEMs safeguard customer trust and preserve revenue.

Addressing Workforce Instability

With workforce turnover rates reaching up to 47% in some regions, OEM leaders are integrating expertise directly into machines and workflows. This reduces reliance on individual knowledge and accelerates training processes, leading to consistent operational performance in the face of human resource challenges.

Evolution of Performance Measurement

The study indicates a shift in how OEMs gauge success. Top-performing companies are prioritizing metrics that reflect profitability and customer satisfaction. These include cost of goods sold, delivery timelines, and recovery times, alongside traditional production yields. They are also focusing on human-centric indicators, such as safety and customer satisfaction.

Targeted Technology Utilization

The top-tier OEMs are leveraging digital twins, Autonomous Mobile Robots (AMRs), and collaborative robots (cobots) effectively. Their strategy is to integrate quality into machine design from the outset and use field feedback to inform future designs rather than simply addressing isolated issues.

Enhancing Compliance and Cybersecurity

Another noteworthy trend observed is the incorporation of cybersecurity measures from the product inception stage. Leading OEMs are treating cybersecurity with the same importance as operational safety, thus enabling easier market access, reducing lead times, and building customer confidence.

Conclusion and Future Directions

As the industrial landscape continues to evolve, OEMs that can adopt these resilience-focused strategies will not only survive but thrive. They will provide consistent performance despite challenges posed by workforce changes and market pressures. For those interested in the complete research findings, the OEM Advantage Guide is available for further insights.

About Rockwell Automation

Rockwell Automation, Inc. is a recognized leader in industrial automation and digital transformation. Based in Milwaukee, Wisconsin, it connects the creativity of human talents with technological advancements to create a more productive and sustainable world. With nearly 26,000 employees serving customers in over 100 countries, Rockwell Automation aims to empower the industrial sector through innovative solutions and the philosophy of The Connected Enterprise.