Tacton, industrial manufacturing’s Configure, Price, Quote (CPQ) SaaS partner for design to sales automation, today announced the results of its “State of Digital Manufacturing 2023” survey, revealing an industry focused on building resiliency to ensure smooth end-to-end operations as it braces for a potential global recession.
Based on a survey of 200 executives and managers across multiple manufacturing sectors in North America and Europe, the report showcases important insights into manufacturers’ digital strategies and priorities for 2023 and beyond. For the past three years, disruptions have had a huge impact on how manufacturers operate, with the ongoing COVID pandemic, growing climate legislation and new consumer buying habits challenging the status quo of selling and causing disruption across every business function.
Now, a new disruption has arrived. With rumblings of a recession possible across the globe, businesses are focused on reducing their spending to ensure profits don’t falter. In 2023, these uncertain economic conditions are driving where manufacturers choose to invest, as they move to accelerate digital efforts, build resilience and meet rising regulations and consumer expectations.
Key findings from the survey include:
- Digital transformation is central to manufacturers’ success in 2023: Manufacturers understand that investing in software and digital technologies is essential to keep up in a quickly changing and very competitive market. In fact, 74% of respondents noted the importance of digital transformation to achieving their business goals in the coming year.
- Uncertain economic times are driving investments: The dynamics of global economies are always in flux, but for complex manufacturers the impact of economic swings can be particularly damaging. As such, manufacturers are striving to optimize and automate processes from end to end. To withstand potential economic challenges in 2023, 32% of respondents are accelerating digital transformation with 67% of respondents prioritizing sales transformation.
- Supply chain optimization tops investment areas: In recent years, with the COVID-19 pandemic and other geopolitical disruptions, the fragility of manufacturing supply chains has become clear. Issues around supply chain predictability, resource scarcity and staff availability remain a top concern for manufacturers today, driving 64% of respondents to invest in supply chains in 2023.
- Regulations and customer demand are driving manufacturers’ sustainability agendas: As demands from consumers, investors and regulators increase, sustainability and Environmental, Social and Governance (ESG) goals are now top-of-mind for manufacturers everywhere. 63% of respondents think sustainability is very or extremely important, recognizing its potential to create value and mitigate organizational risk.
“In recent years, disruption has been a constant for manufacturers, shaping and reshaping the industry. In 2023, this will continue to be the trend as recession sets in across global markets,” said Bo Gyldenvang, Chief Executive Officer at Tacton. “For manufacturers, this means accelerating digital transformation will be more important than ever as they strive to deliver the custom products and sustainable options today’s customers demand. The manufacturers who provide these solutions will continue to win new business, while others struggle to stay competitive and lose market share over time.”