Digitalization Still a Work in Progress for Two-Thirds of Manufacturers

Only about one in three manufacturers have completed their digitalization initiatives, a recent survey finds. This means lagging progress on a range of real-time initiatives, from Industry 4.0 – the interconnectivity of manufacturing networks – to supply-chain visibility and intelligent factory operations.

The slow pace of digitization was tracked in a survey of 600 executives published by Parsec Automation, which shows that 76% of manufacturers across North America and Europe have at least started implementing digital strategies, while close to one-third (32%) say they have completed their digital transformation initiatives.   

“To reach Industry 4.0, manufacturers must modernize non-digital processes, adopt automation to streamline workflows, and embrace data-driven operations with the help of AI,” the survey’s authors stated. “In this regard, it’s clear there’s still room for improvement.”

Digital transformation has been on the scene for more than a decade now, and those putting digital initiatives in place are seeing advantages. At least 83% of manufacturers who completed
their digital transformations rate their outcomes as “good” or “excellent.”

See also: The Year Ahead: Trends in Digital Transformation

State of Digitalization Among Manufacturers

• Early stages of implementation 32%
• We have planned our digital transformation strategy 15%
• We are well into the implementation process 18%
• We have completed implementation 32%
• We are researching options 3%

Many manufacturers are looking to AI to increase the intelligence and open new innovation within their processes. Almost eight in ten manufacturing executives, 79%, describe their facilities as “somewhat” or “very” prepared to adopt AI. In addition, 83% expect widespread use of AI within four years.

Benefits expected from AI include optimized production processes (47%), accelerated product design and development (39%), enhanced supply chain optimization (38%), and improved problem-solving and decision-making (35%).

Challenges to introducing AI into manufacturing processes include data accessibility (44%)
and technological integration (39%).

Continued supply chain challenges have had a profound impact on manufacturing strategies.  
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%).

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%).