Business wire
Manufacturers continue to invest in new tools, training, and operational models to overcome obstacles
Survey: Digital Transformation Brings Industry 4.0 Within Reach, But Manufacturers Continue to Face Challenges
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Loren Guertin
Matter Communications
parsecpr@matternow.com
+1 (508) 243-6825
Parsec Automation (Parsec), the developer of the industry-leading manufacturing execution system (MES) TrakSYS™, today released the first of its two 2024 State of Manufacturing Surveys—part one encompasses North America, while part two (not yet released), will encompass Europe. The results show that 76% of manufacturers across North America and Europe have at least started implementing digital strategies and just over one-quarter (26%) say they have completed their digital transformation initiatives. Of those who have not begun, just 3% said they have no intentions of implementing a data-driven digital strategy at this time.
“Yes, we’ve reached a critical threshold, with the majority of North American and European manufacturers having started planning or building data-led processes and facilities; but it’s more complicated than that,” said Eddy Azad, founder and CEO of Parsec. “In complex manufacturing operations, overcoming one challenge tends to bring other obstacles to the forefront. Though we’re closer than ever before to making Industry 4.0 a reality, there’s still plenty more work to be done to ensure manufacturers are prepared for this kind of ongoing, foundational transformation—and whatever the market has in store.”
Continued supply chain challenges have shifted manufacturing philosophies.
Navigating the supply chain remains “very” or “extremely” challenging for 70% of manufacturers in both regions due to economic downturns (38%) and lack of visibility into operations (37%). Still, 51% describe their supply chain operations as at least “somewhat” resilient. Respondents’ strategies for cultivating resilience are rooted in a move away from ultra-lean, just-in-time fulfillment: diversifying their suppliers (43%), strengthening partner relationships (44%), increasing inventory levels (40%), and implementing new technology (40%).
Reshoring picks up in Europe while slowing in North America.
Though North American manufacturers are more likely to have completed a re- or nearshoring initiative than their European counterparts—12% vs. 5% respectively—they are less likely to initiate moves closer to home in the coming years. North American companies have cooled on the trend, with 47% saying they have no plans to re- or nearshore in the future (compared to 28% of companies in Europe). Top challenges dissuading manufacturers from reshoring run the gamut from facility availability (46%) to logistics (40%), labor costs (40%), and worker availability (39%).
Labor challenges continue to put pressure on businesses, but no single issue plagues the industry at large.
Navigating today’s labor market continues to strain manufacturers both in North America and Europe, with every respondent noting they face at least one workforce-related obstacle. Of the challenges cited, though, no single answer seems to be having a disproportionate impact. Finding qualified candidates was the most common answer (41%), followed by evolving technology (39%), wage competition (38%), and training/onboarding (38%).
Ready or not, many facilities are moving forward with AI.
Manufacturers are all-in on AI, with 99% of North American and 98% of European respondents saying they are at least exploring potential use cases within their operations. Still, more than one-quarter (28%) said their companies are not yet prepared to leverage the tool effectively. Confidence about preparation is higher in North America than in Europe, with 79% of respondents in the U.S. and Canada saying they feel their operations are at least somewhat prepared while only 67% of respondents in Europe shared the sentiment.
A plurality of manufacturers remains unaware of the unique value of MES.
Despite the industry’s interest in using AI tools and data-based strategies to improve operations, a knowledge gap persists about the role of MES platforms in these efforts. Most manufacturers (82%) say their company adopted or upgraded an enterprise resource planner (ERP) over the past year, while just 42% say the same about MES. Nearly three-quarters (74%) of those using an ERP alone say using the former mitigates their need for the latter. However, respondents who use both unanimously agree that there are benefits to MES/ERP integration, including greater flexibility (46%), improved supply chain visibility (41%), better regulatory compliance (40%), and enhanced decision-making (39%).
“Data and connected tools alone don’t fix problems,” Azad continued. “They help manufacturers identify and understand challenges so they can develop effective solutions. If the industry is to continue this forward momentum, manufacturers and their software partners will need to work in close collaboration to anticipate what’s next and prepare accordingly.”
To read the full North American report, visit https://parsec-corp.com/2024-state-of-manufacturing-survey/. To receive an advanced copy of the European report—set for release on December 17, 2024—please reach out to Parsec's media team.
Methodology
Parsec’s 2024 State of Manufacturing Surveys, which were conducted in partnership with Wakefield Research, reflect the feedback of 1,200 manufacturing professionals (director-level or above) from manufacturers across Europe and North America. All responses were gathered via email invitation and online survey between September 5 and 15, 2024.
About Parsec Automation
Parsec is driven by a clear mission: making the management of complex manufacturing operations as simple as possible. To accomplish this, they’ve leveraged their 30+ years of manufacturing software development experience to create TrakSYS, a best-in-class operations management software platform deployed at thousands of factories across 140+ countries.
TrakSYS is designed to provide actionable intelligence that helps manufacturers reduce production costs, optimize resources, improve quality, and increase profitability. From improving operational efficiency to enhancing regulatory compliance, TrakSYS transforms data into a strategic advantage, enabling facilities to thrive in the digital era. With TrakSYS, manufacturers can confidently adapt to change, embrace innovation, and achieve lasting success.
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