BDO: Manufacturers’ shift from optimization to reinvention through Industry 4.0

BDO recently released its 2020 Middle Market Industry 4.0 Benchmarking Survey, which polled 100 C-suite executives at mid-market manufacturers about their Industry 4.0 strategies and challenges.

The survey was conducted by Rabin Research Company, an independent marketing research firm, just before the Covid-19 pandemic.

Key highlights:

● Early Adopters’ Advantages: Nearly one-third of manufacturers were already implementing an Industry 4.0 strategy at the start of 2020, up 5% from 2019, and the oncoming recession will widen the gap between the early movers and manufacturers that have failed to embrace Industry 4.0
● Standing Out to Survive a Downturn: 41% of manufacturers say increasing market differentiation is a top short-term business objective, which will be key to survival amid increasing competition and commoditization. There are also opportunities for manufacturers to gain competitive advantage in a downturn, such as through gaining strong brand recognition by helping combat COVID-19
● Laying the Groundwork for Recovery: Two-thirds (67%) of manufacturers cite boosting operational efficiencies as a top short-term business objective, which will be crucial to navigating an environment where manufacturers are forced to do more with less
● Catalyzing Long-Term Transformation: Diversifying revenues was cited as manufacturers’ #1 long-term Industry 4.0 objective, per 59% of respondents. However, COVID-19 has fast-tracked this desire to a necessity, and some manufacturers have introduced new products/services to stay afloat and meet new demands introduced by the pandemic, which may become permanent services in the post-COVID-19 world.
● CX Spurs Success: 65% of manufacturers cited improving CX as one of their top short-term business goals, which will be key to navigating a downturn. Manufacturers will need to implement strategies focused on retaining customers and building loyalty, which will require adapting their business models to meet changing customer needs & behavior in the post-COVID-19 world