New Study Finds GenAI as Top Tech Investment for Manufacturers, While 94% Expect to Maintain or Expand Their Workforce
- AI is considered the top capability for driving business outcomes by manufacturers.
- 95% of manufacturers are using or evaluating smart manufacturing technology.
- 94% of manufacturers plan to maintain or grow their workforce due to smart manufacturing technology adoption.
- Improved quality and quality control are key outcomes manufacturers aim to achieve through smart manufacturing technology.
- Cybersecurity is listed as one of the top five external risks for manufacturers in 2024.
- Energy management is crucial for manufacturers' sustainability/ESG programs.
- Rockwell Automation emphasizes the importance of combining people, processes, and technology for long-term business growth and resilience.
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The integration of Artificial Intelligence (AI) and smart manufacturing technologies is significantly altering the manufacturing landscape. The report's indication that 83% of manufacturers expect to use generative AI in their operations by 2024 underscores a rapidly growing trend towards automation and digital transformation. This shift is not just about technology; it's reshaping the workforce, with 94% of manufacturers aiming to repurpose or expand their teams to leverage these new tools.
From a market perspective, companies that provide smart manufacturing solutions could see increased demand for their products and services. The emphasis on AI and machine learning for quality control suggests a potential growth area for businesses specializing in these technologies. Moreover, the focus on energy management aligns with global sustainability trends, possibly affecting investment in green technologies and impacting environmental, social and governance (ESG) ratings.
The elevation of cybersecurity to one of the top external risks for manufacturers is a critical development. As companies increasingly adopt smart manufacturing technologies, their exposure to cyber threats escalates. This trend could lead to a surge in demand for cybersecurity services within the manufacturing sector. Firms that can offer robust security solutions tailored to the complex operational technology (OT) environments of manufacturers may gain a competitive edge.
Investors should monitor companies in the cybersecurity field that are positioned to address these industry-specific challenges. The potential for increased regulation around cybersecurity in manufacturing could also play a role in shaping the market, potentially creating both opportunities and hurdles for businesses in this space.
The report highlights a critical shift in workforce dynamics, with a focus on total employee experience and servant leadership to win the talent war. The concept of a Connected Frontline Workforce (CFW) applications suggests a move towards more collaborative and integrated work environments. This has implications for human resources (HR) strategy and could influence how companies invest in employee development and technology.
For stakeholders, this means that businesses which invest in employee experience and modern HR practices may be more likely to attract and retain the skilled workforce needed to implement and benefit from smart manufacturing technologies. As such, companies with forward-thinking HR strategies could be poised for greater productivity and innovation, potentially leading to better long-term performance.
Global State of Smart Manufacturing Report reveals impact of emerging technologies on addressing workforce, quality, cybersecurity, and sustainability challenges
Rockwell Automation's 9th annual State of Smart Manufacturing Report (Graphic: Business Wire)
This year’s report reveals a focus on harnessing new and emerging technologies to build resiliency, improve quality, maximize workforce potential, and drive sustainable growth.
“A skilled workforce is the cornerstone of any successful manufacturing operation, but attracting, managing and retaining workers is proving to be an ongoing challenge,” said Cyril Perducat, senior vice president and chief technology officer, Rockwell Automation. “The survey found technology alone is not the answer. To remain competitive, manufacturers need to focus their staff on embracing new technology as a core part of their evolving organizational culture, creating a technology/worker partnership that drives their business forward.”
Key global findings include:
-
AI ranks as the top capability that manufacturers believe will drive the biggest business outcomes.
83% of manufacturers expect to use generative AI (GenAI) in their operations in 2024. -
95% of manufacturers are using or evaluating smart manufacturing technology – up from84% in 2023. -
94% of manufacturers plan to maintain or grow their workforce due to smart manufacturing technology adoption, with a heavy focus on repurposing workers to new or different roles and/or hiring more workers. - Change management is the leading workforce-related obstacle for manufacturers in 2024.
- Manufacturers cite “improved quality” as the top positive outcome they hope to achieve from existing smart manufacturing technology for a second consecutive year. Additionally, “quality control” ranks as the #1 AI/Machine Learning use case in 2024.
- For the first time, cybersecurity is listed as one of the top five external risks for manufacturers in 2024, ranking third overall.
- Energy management is the factor that matters most to manufacturers’ sustainability/ESG programs.
“The workforce of 2019 is not coming back,” said Allison Kuhn, principal analyst, LNS Research. “Developing a sustainable workforce strategy is critical to successfully navigate daunting manufacturing challenges. Leaders are winning the war for talent by embracing this new reality and with a laser focus on three imperatives: 1) Total Employee Experience, 2) Servant Leadership, and 3) Connected Frontline Workforce (CFW) Applications.”
Manufacturers continue to face a significant challenge: combining people, processes, and technology to drive long-term business growth and resilience. According to the report, around one-third of manufacturing leaders cite “matching technology and talent to business need” and “effectively managing people and resources” as the biggest obstacles their organizations face over the next year. Manufacturers can overcome this challenge by selecting a partner with relevant industry expertise and experience who can provide tailored solutions and support in aligning technology and talent with business objectives.
“At Rockwell, the combination of our deep industry expertise with our exceptional PartnerNetwork™ puts us in the best position to advise and guide leading global manufacturers. Being the largest company dedicated solely to industrial automation and digital transformation, we strive to help companies realize the promise and value of their digital transformation, no matter where they are in their journey,” said Perducat.
The full findings of the report can be found here.
Methodology
This report analyzed feedback from 1,567 respondents from 17 of the top manufacturing countries with roles from management up to the C-suite and was conducted in association with Rockwell Automation and Sapio Research. The survey pulled from a range of industries including Consumer Packaged Goods, Food & Beverage, Automotive, Semiconductor, Energy, Life Sciences, and more. With a balanced distribution of company sizes with revenues spanning
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in
About the Rockwell Automation PartnerNetwork™
Rockwell Automation believes we're better together—and we do our part by delivering an expansive, global partner ecosystem of market-leading technology, superior support and services, and an integrated and streamlined approach to business. Succeed on an international scale by utilizing our network's breadth of innovative technologies and services that no single vendor can provide alone. To learn more about how the PartnerNetwork is helping to deliver the value of The Connected Enterprise, visit PartnerNetwork Program.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326554889/en/
Rockwell Media Relations
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Source: Rockwell Automation, Inc.
FAQ
What is the focus of Rockwell Automation's 9th annual State of Smart Manufacturing Report?
What is the top capability that manufacturers believe will drive the biggest business outcomes?
What percentage of manufacturers expect to use generative AI (GenAI) in their operations in 2024?
What is the percentage of manufacturers using or evaluating smart manufacturing technology?
What is the top positive outcome manufacturers hope to achieve from existing smart manufacturing technology?
What ranks as the #1 AI/Machine Learning use case in 2024 according to manufacturers?
What is listed as one of the top five external risks for manufacturers in 2024?
What factor matters most to manufacturers' sustainability/ESG programs?
What are the three imperatives for winning the war for talent in manufacturing according to Allison Kuhn?
What is the main challenge faced by manufacturing leaders according to the report?
