Report uncovers how manufacturers are adapting to new customer demands and economic challenges of increased globalization and hyper-connectivity
Tacton, industrial manufacturing’s Configure, Price, Quote (CPQ) SaaS partner for design to sales automation, today announced the results of its 2022 “State of Digital Manufacturing” survey, showing how manufacturers are creating resiliency to quickly adapt to market changes and do more despite the disruption defining today’s economic landscape.
The report, based on a January 2022 survey of C-level executives, vice presidents and directors from across the industrial manufacturing sector, found that the industry’s adoption of digital-first experiences for both internal operations and customer experience is rapidly accelerating. Driven by the challenges manufacturers face in the wake of the pandemic—including supply chain disruptions, staffing shortages and growing consumer demands—the trend toward digital, sustainable solutions reflects the industry’s growing need for end-to-end, disruption-proof processes.
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Key findings from the survey include:
- Manufacturing and value chains are changing: With 87% of respondents noting the importance of digital transformation to achieving their business goals in the coming year, it’s clear that the manufacturing industry is undergoing significant change. Digital technologies are bringing manufacturers and retailers closer together than ever before, shifting not just how business is done but the entire value chain as well.
- The pandemic continues to cause disruption: Since it began, the COVID pandemic has altered and disrupted the ways we do business. Today, companies continue to deal with these impacts, in particular, supply chain issues and staffing shortages. Compounding these pandemic-era concerns, manufacturers are still working to address challenges like improving quote efficiency, lack of automation, and transitioning to fully digital buying experiences. All in all, this climate has put greater focus than ever on digital transformation, accelerating transformation efforts for 27% of survey respondents and shifting the focus of those efforts for 32%.
- Companies are seeking disruption-proof processes: From sales to supply chain, manufacturers are striving to optimize and automate their processes to create a disruption-proof business. In fact, 59% of survey respondents named “driving sales and revenue” as a top priority to remain competitive and bolster growth, and as many as 77% said they are investing in supply chain optimization to weather today’s economic uncertainty. However, many companies are still behind when it comes to sales transformation. Industry research by Accenture shows that while over 96% of sales and marketing executives want to transform their sales department, only 7% have plans to act in the next 12 years and 31% in the next 35 years.
- Sustainability has become an imperative: 84% of survey respondents affirmed the importance of sustainability initiatives in manufacturing, reflecting the growing attitude that environmental, social, and governance (ESG) goals are essential for both short-term business goals and long-term success. As consumers become increasingly conscious about how and where their products are sourced, manufacturers know they must invest in their sustainability journey to retain consumer loyalty and avoid future disruptions.
“Successful manufacturers are rising to meet the challenges of the past two years, embracing digital strategies to future-proof their businesses,” said Bo Gyldenvang, Chief Executive Officer at Tacton. “These companies will not only survive in the current moment, but set themselves up to thrive for the long-term—creating value through sustainability, optimizing their supply chain, designing exceptional customer experiences, and building stronger companies that can weather future turbulence.”