According to a new analysis from the top independent research and advising firm Verdantix, the industrial sector’s digitisation of plant operations is accelerating due to the global skills shortage, an ageing workforce, and more workers retiring (please see the attached press release).
Verdantix conducted 301 senior executive interviews for the report across North America, Europe, South America, South Africa, India, Australia, China, and the Gulf States who were in charge of operational excellence efforts at companies with at least $250 million in annual sales.
A significant or very significant factor driving increased digitization, according to 86% of poll respondents, is a lack of skilled labour, while 85% also cite an ageing population as a key one.
More than four in five people (83%) say they intend to raise the amount they spend on operational excellence initiatives in 2023, with around half (42%) anticipating increases of at least 10%.
Macroeconomic reasons are having an impact on spending, according to the report Global Corporate Survey 2022: Operational Excellence Budgets, Priorities & Tech Preferences; 89% of respondents stated cost-cutting had a considerable or very significant influence on digitalisation. Software for asset performance monitoring, business asset management, and mobile apps can help reduce downtime and increase productivity on equipment.
The industry is gaining from emerging technologies like AI and machine learning; according to 87% of respondents, wearable technology in particular is improving data management at industrial enterprises.
Additionally, they can provide current whereabouts.
“Labor shortages have seized industrial enterprises worldwide since the COVID-19 pandemic subsided, putting even greater pressure on heavy industry to explore digital alternatives,” said Joe Lamming, an industry analyst at Verdantix.
“The best hands, eyes, and ears will be on-site at the right time,” according to the statement. “Expanding data collecting, building strong data management systems, and driving advanced analytics will help.”
Data management and integration with current systems are prioritised by successful industrial software providers, according to Lamming, who added that these vendors will provide scalable, self-service solutions to critical pain spots.
