ERP News

Manufacturing Megatrends: The Big Issues Transforming Industry

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“The manufacturing world is being shaped by several new forces—IoT capabilities, the understanding of total cost of ownership, and the work–life balance expectations of millennial employees—and how companies respond will define their success,” said Jenn Callaway, MAPI’s director of councils and business research. “Recognizing the impacts these forces are already having on manufacturing companies, we wanted to better understand which hindered businesses the most last year and which trends may offer more opportunity than risk.”

“The manufacturing world is being shaped by several new forces—IoT capabilities, the understanding of total cost of ownership, and the work–life balance expectations of millennial employees—and how companies respond will define their success,” said Jenn Callaway, MAPI’s director of councils and business research. “Recognizing the impacts these forces are already having on manufacturing companies, we wanted to better understand which hindered businesses the most last year and which trends may offer more opportunity than risk.”

Global Economy Presents Risks and Opportunities

Nearly half (45%) of U.S. manufacturing revenue is generated overseas. Little wonder, then, that 86% of senior leaders in manufacturing cite a negative impact from global economic uncertainty. It’s not much better at home, as 75% point to problems from U.S. economic uncertainty. Three-quarters of MAPI’s respondents also said the strong U.S. dollar was a problem.

Information – The New Currency of Business

Because of “unparalleled access to information on pricing and profitability,” MAPI notes, customer have “never been better informed on the total cost of ownership.” Some 75% of senior manufacturing leaders said understanding TCO had a positive impact on their businesses in 2015.

Lost in Regulation

Manufacturing leaders complain that regulations are making it increasingly difficult to succeed globally. Some 64% of senior executives said U.S. tax policy was negatively impacting their businesses. Close behind was the Affordable Care Act (60%) while 43% said proposed environmental regulations would be harmful to their companies.

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