How Are Mid-Tier Manufacturers Positioned in Industry 4.0?

How Are Mid-Tier Manufacturers Positioned in Industry 4.0?

According to a recently published report from BDO, even though 99% of middle-sized manufacturing firms are well aware of what Industry 4.0 is, 95% of them have not implemented it in their organizations. This means that although there is enough awareness in this sector, the industry is limited by other means.

In North America, all middle-sized manufacturing businesses bear the following general similarities.

  • Their primary investment goals are improving their current machinery, changing depreciated devices with AI and IoT-powered equipment that use real-time MES (manufacturing execution systems).
  • Manufacturers who have a 10% rise since the last year owed their new-found success to incorporate technologies, which has enhanced their scheduling, boosting short-notice production runs, improve supplier-based processes, and decrease the cycle times of orders.

 

According to BDO, manufacturers are confident regarding the technologies of Industry 4.0 based on how much it can help them to grow and assist their business models. Creating a business model for any modern technology or system that generates revenue has become the foremost priority of manufacturers in today’s age. Mid-tier manufacturers were 1.7 times more likely to spend in smart machines and machine upgrades, rather than pour their budgets into marketing. They are seeking the integration of technologies, through which they can meet any customer orders on short notice.

To make sure that the technologies of Industry 4.0 gain adoption, there is a need for additional use cases and awareness on the conventional product-as-a-service benefit, aftermarket sales, and product sales. Manufacturers are well aware of the ROI that goes into the investment of an equipment’s upgrade, purchase of an AI-enabled, sensor-powered machine, or connection with real-time monitoring in their premises. However, the issues with which they are having difficulty are the improvements in traditional product sales that are being made possible with Industry 4.0. Around 84% of upper-mid market manufacturers create revenue with IaaS (Information-as-a-Service), as opposed to 67% of them mid-market manufacturers.

To date, certain types of manufacturers are maximizing the value of their investment in Industry 4.0. They start with a customer-oriented blueprint. Subsequently, they add a different set of technologies to construct engaging and mind-blowing customer experiences. The 10% growth of manufacturing firms is owed to roadmaps that assisted them in taking right technological purchasing decisions. The objective of these roadmaps was to decrease scrap, streamlined the integration of different stakeholders in the supply chain, enhanced inbound quality metrics, and offered real-time updates to customers regarding their orders.


Final Thoughts

As a mid-tier manufacturing firm, you have to hit the right notes from the beginning. If you want to join the elite list of those manufacturing organizations that are growing with a 10% growth rate, you can contact Tantiv4. We can lay down a foundation on which all the technologies of industry 4.0 will not only be implemented correctly, but they will generate quick results with higher revenues, better customer feedback, and a noticeably improved productivity.