Manufacturers Eager to Adopt Smart Manufacturing Technologies, But Face Deployment Challenges

SYSPRO, a leading global​ ​software provider for the manufacturing and distribution industries, has released consolidated results from several surveys that show manufacturers are eager to adopt new technologies however, almost a third (30%) admit they have difficulty integrating and deploying them.

Manufacturers face significant technical hurdles that impede adoption of new technologies
 15% of respondents also say that outdated systems are creating inefficiencies, with a further 15% suffering from limited scalability to meet future needs.

Complex manufacturing companies are beginning to embrace smart technologies

A significant number of manufacturers are overcoming barriers of high upfront costs and internal resistance to change, to adopt technologies such as automation and robotics (37%), AI and machine learning (19%) and industrial internet of things (IIOT) (18%) technologies.

Looking ahead to 2025, AI and automation (40%) lead in their digital transformation priorities, followed by enhancing digital integration and real-time insights (29%) and managing costs while adopting new technologies (24%).

Most manufacturers have plans for AI
40% of respondents said that implementing AI and automation was their top priority when it comes to digital transformation, and 80% are either devoting resources to AI implementation or are making near-term plans to do so.  12% have already deployed AI (differentiated from machine learning) or are actively in the process of doing so, almost six in 10 (57%) are actively researching use cases, and another 11% plan to deploy AI within the next 12 months.

SYSPRO’s findings mirror those of a Manufacturing Leadership Council survey, which found that 78% of manufacturers say their AI initiatives within manufacturing operations are part of their company’s larger digital transformation and business strategies.

Manufacturers face difficulty providing real-time data and analytics
Another significant challenge manufacturing leaders highlighted was the inability to obtain real-time data to enable them to make quick, data-driven decisions (40%). Despite analytics providing a solution to this problem, only 23% have made implementing analytics a key technology priority for the coming year. Additionally, almost one-quarter (24%) are not using any kind of analytics at all.

Skilled labour shortage remains a serious challenge for manufacturers
When manufacturers were asked about the biggest challenges they expect to face in 2025, the number one response was their ability to attract and retain a skilled workforce (30%), followed by supply chain disruptions (23%) and cybersecurity (12%). These findings concur with a survey from the National Association of Manufacturers  which found 71% of manufacturing companies struggled to attract and retain employees.

“Our research shows the appetite for smart technology amongst manufacturers is high, enabling the industry to harness advanced technologies to overcome a plethora of demands, from workforce shortages and supply chain disruptions, to effective, data-driven decision making. However, the research also shows that adoption and deployment remains a challenge,” said Kelly Kucera, Senior Vice President of Global Marketing at SYSPRO Americas.

“We understand the urgent need to address this problematic gap between desire and adoption, which is why we’ve designed our ERP solutions to simplify this transition, and provide the flexibility and integration needed for real-world manufacturing environments of the future.”

The full Frost & Sullivan Research Report can be downloaded here: Complex Manufacturing Trends and Opportunities | SYSPRO US

 

About the research

The research included a poll of 128 manufacturers conducted at SYSPRO’s Fall 2024 SPARK Customer Roadshow, responses from an October 2024 Trends Webinar Survey, and over 360 data points from interviews with manufacturing leaders conducted in collaboration with Frost & Sullivan.

 

About SYSPRO  

SYSPRO is a leading, global software provider specializing in key manufacturing and distribution industries. For over 40 years, SYSPRO’s team of specialists has continued to address unique industry needs and enable customers to easily adapt and grow. The solution is scalable and can be deployed in the cloud, on-premise, or both, and accessed via the web on any device to provide customers with choice and flexibility.   

SYSPRO remains focused on the success of partners and customers. Our evolving solutions are aligned with industry trends to leverage emerging technology that will enable partners and customers in securing a digital future.   

With more than 15,000 customers in over 60 countries across six continents – SYSPRO offers guidance and support every step of the way as a trusted digitalization partner.