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        Industry Perspectives

        Business Trends in the Manufacturing Industry

        The manufacturing industry is continuously challenged by supply chain and demand indicators that impact the revenue pressures and resilience every business desires. Gaining confidence in the continuity of manufacturing processes requires that business trends and requirements for successful outcomes be considered and acted upon. For manufacturing organizations, a steady focus on digital innovation that moves beyond transformation to modernization is necessary to meet customer and demand chain requirements. Ventana Research has identified three key business trends every manufacturing organization should address to achieve excellence in business processes and workforce readiness with products and suppliers.

        VR_Manufacturing_2022_Coverage_LogoTop of mind is sustainable ESG investments. The manufacturing industry has not had the best reputation in environmental and social efforts. But increasing consumer demand and government regulations are forcing manufacturers to care far more about ESG efforts if they hope to attract and impact consumers and stakeholders, workers and the world. Manufacturers must increase their ESG focus to match the rising interest amongst investors.

        The “gold standard” has become increasing productivity by incorporating modern technologies like industrial internet of things (IIoT), sensors, artificial intelligence (AI), and robots across processes and humans. Smart factories that utilize these technologies are becoming essential to increase productivity and the connectivity between the factory processes and information shared between machines and humans. This allows for more seamless, automated, informed and flexible transitions across the assembly line.

        Our last highlighted business trend is selling platforms that meet customers where they are and enable B2B and direct to consumer (D2C) transactions in a frictionless manner through experiences that embrace products. Customers are empowered with so much technology that they often research products before they buy, so having an online presence is vital for businesses looking to reach those customers. Many in the manufacturing industry are looking to evolve from B2B retailers to selling D2C. Customers prefer this as they get direct access to the manufacturer and direct interest in the sustainability. Product information has highlighted this trend.

        VR_2022_Industry_Assertion_Manufacturing_Operations_and_Supply_Chain_Mark_2_Square (1)The manufacturing industry is currently working through a significant economic, business and digital transformation that requires not just innovation but modernization in how it operates to meet customer and retail expectations. The interconnected aspect of efficiency in interactions with customers, the sustainability in how it operates and the desired hybrid workplace approach must be considered together for a more connected and unified approach. By 2024, one-third of manufacturing organizations will require a center of excellence (COE) to apply digital technology innovation into product and operational processes to streamline demand and supply chain execution. The transition to efficient and sustainable supply chain and business processes requires a more resilient approach. That approach has a significant impact on how manufacturing organizations navigate the transformation while maintaining financial and product profitability and customer satisfaction.

        Manufacturing organizations should assess business process efficiency and organizational readiness to meet the pressures of these economic and industry trends. How organizations adapt and develop a responding sense of urgency will determine whether product lines are sustainable and in demand by consumers. Ventana Research recommends that manufacturing organizations adapt and transform to be digitally effective in business processes and operations. The risk in not being sustainable, progressive, resilient and ready to meet these trends can significantly impact results expected across the organization and industry.

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        Ventana Research is the most authoritative and respected market research and advisory services firm focused on improving business outcomes through optimal use of people, processes, information and technology. Since our beginning, our goal has been to provide insight and expert guidance on mainstream and disruptive technologies. In short, we want to help you become smarter and find the most relevant technology to accelerate your organization's goals.

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        Our Market Perspective Policy

        • Ventana Research’s Market Perspectives are fact-based analysis and guidance on a vendor’s business, industry and technology trends. Each Market Perspective presents the view of Ventana Research using its established subject matter expertise on new developments, business and technology trends, findings from our research, or best practice insights.

          Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity to ensure it delivers reliable and actionable insights. It is reviewed and edited by the firm’s product management team and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Market Perspective before it is published. If you have any issue with a Market Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com

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