A study by Rockwell Automation has found that over 45% of APAC manufacturers need more innovation, a skilled workforce, and technology to outpace competitors. Additionally, globally, four out of five manufacturers still lack an end-to-end supply chain planning solution. However, 44% of APAC manufacturers plan to adopt smart manufacturing within the next year. Cybersecurity is the obstacle all respondents seek to mitigate with smart manufacturing initiatives, as manufacturing had the highest average ransom payments in 2022 at US$2 million. Therefore, 50% of manufacturers surveyed are also shifting their operations to the cloud for increased cybersecurity protection and business continuity. Manufacturers who can attract, retain, and upskill the right team will outperform competitors. 88% of APAC manufacturers plan to maintain or grow employment due to technology adoption.
According to a recent study by Rockwell Automation, over 45% of APAC manufacturers are lacking in innovation, a skilled workforce, and technology required to stay ahead of their competitors. The study surveyed more than 1,350 manufacturers across 13 leading manufacturing countries, including China, India, Japan, Australia, and the Republic of Korea. The 8th annual State of Smart Manufacturing report also found that four out of five manufacturers still need an end-to-end supply chain planning solution, while 44% of APAC manufacturers plan to adopt smart manufacturing in the following year.
Despite the pandemic challenging every manufacturer, leading manufacturers are increasingly adopting smart manufacturing to stay ahead of the competition. However, there are still a growing number of manufacturers whose organizations lack the necessary technology required to compete in 2023 compared to 2022.
Rockwell Automation’s report noted that 53% of respondents are adopting new technology to minimize disruption from the workforce or supply issues as a way of addressing internal risk. But, one-third of manufacturers globally suffer from technology paralysis, where the range of available systems and platforms leads to an inability to decide between solutions.
The study also found that 44% of respondents are adopting new technology as the top-ranking mitigation tactic for external risks such as inflation, supply chain, and workforce shortages.
A recent study by Rockwell Automation has found that globally, four out of five manufacturers still lack an end-to-end supply chain planning solution. Additionally, for APAC manufacturers, the most significant barriers to adopting smart manufacturing are employee resistance to technology adoption and change, a lack of skill set to manage smart manufacturing implementation, and a lack of clear definition of the value/ROI of smart manufacturing.
However, Rockwell Automation also noted that 44% of APAC manufacturers plan to adopt smart manufacturing within the next year, with China (80%), Australia (60%), and India (59%) already using some components of smart manufacturing. Quality management system (QMS) is the smart manufacturing system that APAC respondents have seen the largest ROI, followed by manufacturing execution system (MES) and enterprise resource planning (ERP).
Globally, the study revealed that process automation and cloud/SaaS are the two most popular technology investments, adopted by 63% of participants, which deliver the highest returns. Process automation has delivered the most significant ROI, then cloud/SaaS, followed by the Industrial Internet of things (IIoT).
In terms of risk, cybersecurity is the obstacle all respondents seek to mitigate with smart manufacturing initiatives, as manufacturing had the highest average ransom payments in 2022 at US$2 million. Therefore, 50% of manufacturers surveyed are also shifting their operations to the cloud for increased cybersecurity protection and business continuity.
Lastly, the study noted that manufacturers who can attract, retain, and upskill the right team will outperform competitors. In fact, 88% of APAC manufacturers plan to maintain or grow employment due to technology adoption. Additionally, 39% of respondents believe they can repurpose existing workers due to their increasing use of technology.
Don’t miss interesting posts on Famousbio
