Parsec Automation reveals findings from 2024 State of Manufacturing Survey

In a significant development for the manufacturing sector, Parsec Automation has unveiled the initial findings from its 2024 State of Manufacturing Survey, focusing on North America. The survey, conducted in collaboration with Wakefield Research, involved feedback from 1,200 manufacturing professionals at the director level or above, gathered between September 5 and 15, 2024. This survey results provide insights into the ongoing transformation within the industry, primarily influenced by technological advancements and evolving market dynamics.

The data reveals that a considerable majority of manufacturers—76% across North America and Europe—have initiated their digital transformation strategies. Notably, 26% have reached completion of these initiatives. Among the manufacturers who have not begun implementing a data-driven digital strategy, only 3% expressed no intentions of doing so. Eddy Azad, founder and CEO of Parsec, highlighted the complexity of this transition, stating, “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.” He noted that while the industry nears the realisation of Industry 4.0, “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.”

The survey findings also underscored ongoing supply chain challenges, with 70% of respondents labelling the situation as “very” or “extremely” challenging. Reasons cited include economic downturns (38%) and a lack of operational visibility (37%). Nevertheless, over half of the manufacturers surveyed (51%) described their supply chain operations as at least “somewhat” resilient, with strategies such as diversifying suppliers (43%), strengthening partner relationships (44%), increasing inventory levels (40%), and integrating new technology (40%) being implemented to foster this resilience.

Reshoring trends in manufacturing present a mixed picture. Although 12% of North American manufacturers reported completion of re- or nearshoring initiatives—compared to just 5% in Europe—there is a notable decline in plans for future reshoring, with 47% of North American companies signalling no intent to reshoring, in contrast to 28% of their European counterparts. The challenges faced include issues with facility availability (46%), logistics (40%), and labour costs and availability (both at 40%).

Workforce-related challenges continue to affect the sector, with all respondents acknowledging at least one significant issue. Common obstacles include difficulties finding qualified candidates (41%), challenges posed by evolving technology (39%), and competition in wages (38%).

As the industry shifts towards automation, interest in artificial intelligence (AI) applications is rising sharply, with 99% of North American and 98% of European manufacturers exploring potential AI use cases. However, preparedness for effective AI integration appears uneven; 28% of manufacturers reported being unprepared to leverage AI, with North American respondents showing higher confidence levels—79% feel somewhat prepared versus 67% in Europe.

Despite this interest in AI and data-driven strategies, a knowledge gap has emerged regarding manufacturing execution systems (MES). Although 82% of manufacturers have adopted or upgraded their enterprise resource planning (ERP) systems within the past year, only 42% report having similar initiatives for MES. Parsec’s survey indicated that nearly three-quarters (74%) of those using only ERP believe it sufficiently meets their needs, while users of both MES and ERP agree on the clear benefits of integrating the two systems.

Eddy Azad summed up the survey insights by emphasising that “data and connected tools alone don’t fix problems. They help manufacturers identify and understand challenges so they can develop effective solutions.” He asserted the necessity for collaboration between manufacturers and software partners to ensure ongoing progress in the industry.

Parsec Automation’s comprehensive 2024 State of Manufacturing Survey aims to shed light on these emerging trends, with part two focusing on Europe set to be released on December 17, 2024. The full North American report is available for further details on the developing landscape of manufacturing practices.

Source: Noah Wire Services