Survey: manufacturers overwhelmingly see digital transformation as essential

Global manufacturing and supply chains were severely disrupted by the COVID-19 global pandemic, forcing companies to adapt and plan for a new business reality. The newly released 2021 State of Manufacturing Report from Fictiv reveals an industry that is already quickly rebounding with investments in digital transformation aimed at improving speed, resilience and sustainability. While areas of concern persist, most report that lessons from the pandemic have paved the way for new innovations.

Key takeaways of the survey-based report include:
• Industry leaders believe now is the time to accelerate the pace of change with 95% saying the pandemic has had long-term effects on their business and that same number (95%) agreeing that digital transformation is essential to their company’s future success;
• The pandemic laid bare deep weaknesses in supply chains as 94% of survey respondents report concerns about their current supply chains and 92% say their supply chains act as barriers to new product innovation; and
• As companies move into a post-pandemic era they are looking to future proof their manufacturing with 62% pursuing a re-shoring strategy, 89% reporting that sustainable manufacturing is a growing priority, and 84% having turned to on-demand manufacturing as a solution.

“The overriding takeaway from this year’s report is that the pandemic served as a catalyst to turn emerging digital ideas into strategies that are now irrevocably changing supply chains,” said Fictiv CEO Dave Evans. “Companies moved quickly and decisively to solve short term problems but recognized that the limitations of their current supply chains required long-term investment and innovation. Looking ahead, industry leaders are nearly unanimous in their expectations that those digital investments will help them build faster, greener, and more resilient supply chains.”

Conducted with Dimensional Research, the sixth annual manufacturing industry report polled hundreds of senior manufacturing and supply chain decision makers at companies producing medical device, robotics, automotive, aerospace, and consumer electronics products.

Among those industries with plans to onshore in 2021, 80% of medical device companies report it is a key strategy, followed by 67% in robotics, 61% in automotive, and 45% in consumer electronics. However, 55% report that workforce training is the number one barrier to increasing their US-based manufacturing footprint, followed by cost (43%), insufficient capacity (36%), and lack of access to needed technologies compared to global suppliers (31%);

For a full copy of the 2021 State of Manufacturing Report or to learn more about Fictiv and its digital manufacturing ecosystem, visit here.