New Research Unveils Manufacturers Striving for Smart Technology Adoption Amid Challenges
In recent findings from SYSPRO, a prominent global ERP software provider specializing in manufacturing and distribution sectors, it has been revealed that manufacturers are keen to integrate smart manufacturing technologies. Despite the enthusiasm, the study, which included insights from various surveys conducted with manufacturing leaders, indicates that significant hurdles remain, especially regarding deployment.
The consolidated research drew from multiple sources, including a survey of 128 manufacturers at the Fall 2024 SPARK Customer Roadshow, an October 2024 Trends Webinar Survey, and over 360 data points gathered through interviews in partnership with Frost & Sullivan. The results suggest a strong desire among manufacturers to incorporate innovative technologies such as artificial intelligence (AI), automation, and the Industrial Internet of Things (IIoT).
Key Insights from the Research
1. Eager Adoption of Smart Technologies
The results indicate that complex manufacturing entities are beginning to embrace technologies that enhance operational efficiency. Approximately 37% of manufacturers are now adopting automation and robotics, while 19% are integrating AI and machine learning, and 18% are venturing into IIoT technologies.
2. Digital Transformation Priorities
As manufacturers look towards 2025, their top focus is implementing AI and automation, which claims 40% of their digital transformation strategy. Other priorities include improving digital integration and gaining real-time insights (29%) and managing operational costs amid technology adoption (24%).
3. Comparative Adoption Rates
The survey highlighted a striking difference in the adoption of smart manufacturing technologies between the U.S. and China. Nearly 45% of Chinese manufacturers have already taken steps toward adopting these emerging technologies, suggesting that U.S. manufacturers have ground to cover in this competitive landscape.
4. Focus on AI Implementation
A significant 40% of the respondents cited implementing AI and automation as their primary focus when discussing digital transformation. Remarkably, 80% are currently allocating resources toward AI initiatives, and 12% have already deployed AI technologies, differentiating them from broader machine learning applications. Furthermore, data shows that 57% are actively researching how to implement AI effectively.
5. Technical and Organizational Barriers
Despite the enthusiasm for advanced technologies, about 30% of manufacturers reported challenges integrating new tech into existing operations. Some manufacturers also face issues stemming from outdated systems, which hinder their efficiency and limit scalability for future growth.
6. Real-Time Data Analytics Gaps
A vital concern among manufacturers is the lack of real-time data analytics, with 40% highlighting their inability to access real-time information for prompt decision-making as a significant challenge. Although analytics could be a solution, only 23% have prioritized implementing these technologies within the next year, with 24% not leveraging any analytics tools.
7. Ongoing Labor Shortages
An ongoing skilled labor shortage presents a notable challenge for manufacturers. When asked to identify potential challenges for 2025, 30% indicated attracting and retaining a skilled workforce as their biggest concern, followed closely by supply chain issues (23%) and cybersecurity threats (12%).
Kelly Kucera, Senior Vice President of Global Marketing at SYSPRO Americas, commented, "Manufacturers clearly see smart technology as the key to overcoming workforce shortages and supply chain disruptions. However, adoption continues to be complex." Kucera emphasizes the importance of ERP solutions like SYSPRO that can simplify this transition, enabling flexibility and integration crucial for real-world manufacturing.
To delve deeper into these findings, attendees can register for the upcoming webinar titled Global Complex Manufacturing Outlook 2025, featuring leaders from SYSPRO and Frost & Sullivan, which discusses trends and opportunities in the sector.
This research underscores the importance of innovation in manufacturing and the challenges that must be navigated to successfully implement cutting-edge technologies in a rapidly changing global landscape. As manufacturers strive to modernize their operations, the role of smart technologies becomes increasingly vital in maintaining competitiveness and operational efficiency.