New Research Highlights 40% Faster Recovery and Profitability Improvement by Resilience-Oriented Strategies
Rockwell Automation, Inc. (NYSE: ROK), recognized as the world's premier entity in industrial automation and digital transformation, recently published a significant global study showcasing how eminent original equipment manufacturers (OEMs) enhance performance and resilience in increasingly complex operational conditions. This study, titled "Playbook: The OEM Advantage," is based on insights from 500 OEM executives across 17 countries.
The report asserts that while OEMs face challenges such as workforce instability, supply chain fluctuations, cost pressures, and escalating customer expectations, many are strategically adapting their operations to attain consistent performance despite unpredictable circumstances. Leading OEMs are shifting their focus from solely relying on machinery performance to achieving rapid recovery, ensuring operational consistency, and making data-driven decisions.
Evan Kaiser, the Vice President of Global OEM and Emerging Industries at Rockwell Automation, commented, "In the future, it won’t be the most advanced machine that defines success in the OEM market, but rather which company can deliver consistent performance amidst workforce turnover, supply chain disruptions, and ongoing market pressures."
1. Rapid Recovery as a Profitability Lever: With average production downtimes lasting 40 hours and costing approximately $3.6 million, leading OEMs are enabling their customers to recover within 24 hours or less. These companies are investing in machinery that recognizes issues early, allowing quick restoration of performance, thus safeguarding revenue and boosting customer trust.
2. Adapting to Persistent Workforce Instability: In certain regions, employee turnover rates approach 47%. To tackle this, leading OEMs are embedding expertise within their machinery and workflows. This approach minimizes dependency on specific skilled workers while ensuring faster onboarding and consistent operational performance.
3. Advanced Performance Metrics: High-performing OEMs are focusing on profitability and customer output metrics (such as revenue costs, lead times, and downtime recovery), blending these with traditional production yields alongside new metrics centered around human factors, like safety and satisfaction.
4. Strategic Use of Technology: Market leaders are leveraging digital twins, Autonomous Mobile Robots (AMRs), and collaborative robots (cobots) to design higher-quality machines and improve delivery consistency. These firms utilize practical insights not just to solve isolated problems but to enhance future designs.
5. Compliance and Cybersecurity as Unique Selling Propositions: Leading OEMs prioritize cybersecurity at the outset of product design, equating its importance to safety. This focus helps facilitate market access, reduces delays, and significantly enhances customer trust.
Overall, the study illuminates how OEMs can thrive by integrating resilience-focused strategies into their operations, which is crucial in today's rapidly evolving industrial landscape. For further insights and detailed findings from the "Playbook: The OEM Advantage" study, you can visit Rockwell Automation's official website.
Rockwell Automation continues to drive innovation in industrial automation and digital transformation by combining human creativity with technological prowess, pushing the boundaries of what’s possible while contributing to a more productive and sustainable world. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 individuals serving customers in over 100 countries as of the end of fiscal year 2025. For more on the Connected Enterprise in industrial companies, visit www.rockwellautomation.com.
The report asserts that while OEMs face challenges such as workforce instability, supply chain fluctuations, cost pressures, and escalating customer expectations, many are strategically adapting their operations to attain consistent performance despite unpredictable circumstances. Leading OEMs are shifting their focus from solely relying on machinery performance to achieving rapid recovery, ensuring operational consistency, and making data-driven decisions.
Evan Kaiser, the Vice President of Global OEM and Emerging Industries at Rockwell Automation, commented, "In the future, it won’t be the most advanced machine that defines success in the OEM market, but rather which company can deliver consistent performance amidst workforce turnover, supply chain disruptions, and ongoing market pressures."
Key Findings from the Study:
1. Rapid Recovery as a Profitability Lever: With average production downtimes lasting 40 hours and costing approximately $3.6 million, leading OEMs are enabling their customers to recover within 24 hours or less. These companies are investing in machinery that recognizes issues early, allowing quick restoration of performance, thus safeguarding revenue and boosting customer trust.
2. Adapting to Persistent Workforce Instability: In certain regions, employee turnover rates approach 47%. To tackle this, leading OEMs are embedding expertise within their machinery and workflows. This approach minimizes dependency on specific skilled workers while ensuring faster onboarding and consistent operational performance.
3. Advanced Performance Metrics: High-performing OEMs are focusing on profitability and customer output metrics (such as revenue costs, lead times, and downtime recovery), blending these with traditional production yields alongside new metrics centered around human factors, like safety and satisfaction.
4. Strategic Use of Technology: Market leaders are leveraging digital twins, Autonomous Mobile Robots (AMRs), and collaborative robots (cobots) to design higher-quality machines and improve delivery consistency. These firms utilize practical insights not just to solve isolated problems but to enhance future designs.
5. Compliance and Cybersecurity as Unique Selling Propositions: Leading OEMs prioritize cybersecurity at the outset of product design, equating its importance to safety. This focus helps facilitate market access, reduces delays, and significantly enhances customer trust.
Overall, the study illuminates how OEMs can thrive by integrating resilience-focused strategies into their operations, which is crucial in today's rapidly evolving industrial landscape. For further insights and detailed findings from the "Playbook: The OEM Advantage" study, you can visit Rockwell Automation's official website.
Rockwell Automation continues to drive innovation in industrial automation and digital transformation by combining human creativity with technological prowess, pushing the boundaries of what’s possible while contributing to a more productive and sustainable world. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 individuals serving customers in over 100 countries as of the end of fiscal year 2025. For more on the Connected Enterprise in industrial companies, visit www.rockwellautomation.com.
Topics Business Technology）
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