Digital transformation is priority for global manufacturers

Digital transformation is considered a priority by 92% of manufacturers. With the rapidly increasing use of artificial intelligence (AI) and the high expectations around it, they are therefore willing to invest in improved data management and new technologies. In this way, they hope to improve visibility and quality in the manufacturing process. This is according to Zebra Technologies’ ‘Manufacturing Vision Study 2024’.

The importance of digital transformation is high for manufacturers. However, in doing so, they need to overcome a number of obstacles. Consider the cost and availability of manpower, scaling technological solutions and the convergence of information technology and operational technology (IT/OT). Visibility is the first step for this. Applying AI and other new technologies enables manufacturers to use data more effectively to identify, respond to and prioritize problems and projects.

“Manufacturers are struggling to use their data effectively, so they recognize they need to adopt AI and other technology solutions to create an agile, efficient manufacturing environment,” says Enrique Herrera, Industry Principal for Manufacturing at Zebra Technologies. “Zebra helps manufacturers work with technology in new ways to automate and improve workflows. This enables the creation of a well-connected factory floor, where people and technology work together on a large scale.”

Closing the visibility gap

Although manufacturers say digital transformation is a strategic priority, achieving a fully connected factory remains challenging. Visibility is key to optimizing efficiency, productivity and quality on the factory floor, yet a large visibility gap exists. Only 15% of European factory managers and 16% globally say they have arranged real-time, work-in-progress monitoring across the entire production process.

57% of global manufacturing leaders – compared to 49% in Europe – expect to have increased visibility across manufacturing and the entire supply chain by 2029. However, one-third say that a major barrier to digital transformation is that IT and OT need to agree on where to invest. Zebra believes this difference in priorities poses a significant challenge to the progress of digital initiatives.

In addition to these barriers, 84% of European factory managers and 86% globally say they struggle to keep up with the pace of technological innovation. They also say they find it difficult to safely integrate devices, sensors and technologies into their facilities and supply chain.

Empowering workers with AI

The survey further shows that manufacturers are changing their growth strategies by integrating and empowering workers with AI and other technologies to transform their manufacturing and build a workforce with the right skills over the next five years. For example, almost three-quarters of manufacturing executives (71% in Europe, 73% globally) plan to retrain employees on data and technology use.

Seven in ten manufacturing executives (70% globally compared to 62% in Europe) expect to provide employees with technology that increases mobility. Tablets (54% in Europe, 51% globally), mobile computers (54% in Europe, 55% globally) and workforce management software (57% in Europe, 56% globally) are among the technology tools that manufacturing leaders are implementing. In addition, 61% plan to use portable mobile computers to support their changing workforce.

According to Zebra, managers in the manufacturing sector (C-Suite, IT and OT) understand that labour initiatives must go beyond improving employee efficiency and productivity with technology. Six in ten leaders consider continuous development (61% in Europe, 65% globally), retraining/upgrading (66% in Europe, 65% globally) and career development (63% in Europe, 62% globally) as a top priority to attract future talent.

Doing more with less

The quest for quality has increased as manufacturers in all segments have to do more with fewer resources. According to the survey, global production leaders say the most important quality management issues today are real-time visibility (28% in Europe, 33% globally), keeping up with new standards and regulations (28% in Europe, 29% globally), integrating data (26% in Europe, 27% globally) and maintaining traceability (23% in Europe, 27% globally). Production leaders’ plans to implement technology address these challenges.

Over the next five years, many manufacturers plan to implement robotics (63% in Europe, 65% globally), machine vision (66% in Europe and globally), radio frequency identification (62% in Europe, 66% globally) and fixed industrial scanners (53% in Europe, 57% globally). These automation solutions are driven by several factors, including the need to provide staff with high-quality tasks (69% in Europe, 70% globally), achieving service level agreements (69% both in Europe and globally), and increasing flexibility on the factory floor (63% in Europe, 64% globally).