Rootstock Software releases results from its 2024 State of Manufacturing Technology Survey. This study assessed how manufacturers view their digital transformation journeys, where they are currently making tech investments, and where they see opportunities for emerging technologies such as artificial intelligence (AI). Despite 90% of manufacturers utilizing some form of AI in their operations, the survey revealed there is a level of imposter syndrome when it comes to AI implementation and progress, with 38% reporting they feel behind their peers.
Compiled based on a survey of 508 manufacturers across countries in North America, Europe, and Asia, Rootstock’s State of Manufacturing Technology survey is a follow-on to the company’s inaugural 2023 report, designed to uncover how manufacturers are progressing in digital transformation year-over-year. The 2023 report found that the top two barriers to digital transformation were a lack of cross-departmental collaboration/coordination (37%) and limited access to data (34%). Comparatively, this year’s report uncovered a clear shift from concerns around data access and departmental collaboration to constraints surrounding budget/resources (31%) and time (27%) which emerged as the new top obstacles to digital transformation initiatives in 2024.
“Today’s economic climate is driving an urgent need for manufacturers to do more with less,” says Raj Badarinath, chief product & marketing officer at Rootstock Software. “To navigate the volatile micro and macro trends occurring at a local and global scale, manufacturers are recalibrating technology investments and resetting what ERP means in the age of AI. In years past, they’ve hobbled along on incremental benefits from legacy solutions. But now they’re seeing the benefits of a modern, cloud-first, AI-ready platform approach. Acquiring these capabilities will deliver the benefits that matter most to manufacturers, namely precise control over their resources, the ability to adapt to ever-changing conditions, and more time to focus on initiatives that truly deliver value.”
Key Takeaways:
- According to survey data, manufacturers show a positive outlook on digital transformation (63%), with the majority feeling they’re at least on par with peers (39%) or slightly ahead (24%).
- The top concerns were unreliable suppliers (39%) and decreased demand (36%).
- Over half (51%) of manufacturers are planning to increase spending in this area (such as ERP, CRM, HCM, SCM, finance), underscoring the importance of these digital tools for future growth.
- Manufacturers leveraging Cloud ERP reported reduced overall costs (56%), improved IT security (46%) and enhanced business agility and resiliency (46%).
- Manufacturers who have deployed a Signal Chain strategy are farther ahead in their digital transformation journeys (76%) than those that have not (8%).
