How Leading OEMs Enhance Profitability with Resilience Strategies for Recovery

Revolutionizing Recovery in Industrial Automation

In an ever-evolving industrial landscape, a recent study from Rockwell Automation, the largest player in industrial automation and digital transformation, sheds light on how leading Original Equipment Manufacturers (OEMs) are adjusting their strategies to enhance operational efficiency and profitability. The findings from the research underscore a significant trend—an impressive 40% reduction in downtime recovery, achieved through resilience-first strategies. The report, titled the OEM Advantage Playbook, encapsulates insights from 500 OEM leaders across 17 nations, revealing critical tactics to navigate complex operating conditions.

Key Highlights from the Research

The study outlines several pivotal findings that underscore how top-tier OEMs are pivoting their focus from mere machine performance to building consistent businesses capable of thriving under pressure. This comprehensive approach is not just about crafting advanced machinery but about embedding resilience within the operational framework.

1. Faster Recovery as a Profit Lever: Leading OEMs are proactively designing machines that can detect issues early, allowing for recovery times of 24 hours or less, thus protecting both revenue and customer confidence. Historically, outages average around 40 hours, leading to losses of approximately $3.6 million. By focusing on rapid recovery, OEMs enhance their profitability significantly.

2. Designing for Workforce Instability: With employee turnover rates soaring to 47% in certain regions, successful OEMs are embedding expertise into their machines and workflows. This process reduces reliance on any single individual's experience, enabling quicker onboarding and ensuring consistent operations despite workforce changes.

3. Evolution of Performance Measurement: High-performing OEMs are redefining their key performance indicators (KPIs) by incorporating metrics focused on profitability and customer outcomes. These include costs associated with goods sold, lead times, and downtime recovery, alongside traditional measures like production yield and newer aspects such as employee satisfaction and safety.

4. Intentional Technology Integration: Leading companies are strategically implementing technologies such as digital twins, autonomous mobile robot (AMR) systems, and collaborative robots (cobots). These tools are not merely added late in the process but are integrated from the outset, facilitating a design quality that is informed by real-world deployment insights.

5. Prioritizing Security and Compliance: In today’s data-driven environment, leading OEMs are embedding cybersecurity measures directly into their product designs. This proactive stance on security not only mitigates risks but also solidifies customer trust and market access. By treating cybersecurity with the same seriousness as safety, these manufacturers are ensuring their products are both safe and secure.

Conclusion

As the industrial landscape grows increasingly complex with factors such as global supply chain issues, changing workforce dynamics, and heightened customer expectations, the findings of the OEM Advantage Playbook paint a revealing picture. Companies that adopt these resilience-driven strategies not only gain a competitive edge in recovery but pave the way for sustained profitability and customer loyalty. Organizations looking to navigate this shifting terrain successfully must focus on embedding resilience into their operational DNA, positioning themselves to thrive despite the inherent challenges of modern manufacturing. The complete findings of the research can be accessed for a more in-depth understanding of these emerging trends within the OEM sector.

For further insights into Rockwell Automation’s transformative practices and methodologies, visit Rockwell Automation.