Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers (NA)

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers

North America

Welcome To Our Annual Manufacturing Industry Forecast

2022 was a challenging year, with rising inflation, supply chain vulnerability and labor shortages all impacting manufacturers. But which of these factors are companies most concerned by in 2023? And more importantly, how do manufacturers plan to address key challenges to continue growing their business?

This is your opportunity to find out what other industrial and process manufacturers are planning over the next 12 months and get your business future-ready.

Aptean surveyed over 250 North American manufacturing companies in sectors including electrical equipment, fabricated metals, industrial machinery, chemicals, pharmaceuticals and personal care products to bring you unique, valuable insights.

Keep reading to learn how:

› 80% of manufacturers will use technology to drive business growth in 2023—and which solutions they’re most likely to invest in

› 89% are combating the rising cost of doing business by using digital transformation to increase efficiency

› Half will increase automation to counteract labor shortages

Plus other actionable insights that will shape your 2023 manufacturing strategy.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

Let’s dive straight into the data…

The Mood Has Improved

What Does This Mean?

There will be no shortage of challenges in 2023, but manufacturers are now accustomed to operating in an unpredictable market.

Industrial and process manufacturing companies are mindful of major obstacles, and most of them feel confident they can adapt to challenges and find opportunities to drive revenue. This agility will help organizations to continue growing despite tough trading conditions.

So, the mood has improved, and manufacturers are aiming for growth, but how are they planning to achieve this goal? Our research has revealed some interesting insights…

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Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America | Whitepaper

“We want to increase our level of automation to accelerate our digital transformation.”

want to grow our revenue but not at the expense of quality and customer service.”

“We are focused on going more digital and automating some manual processes.”

“In the next 12 months we will accelerate the pace of digital transformation and become a digital enterprise as soon as possible.”

Trend #1: Digital Transformation is Driving Growth

Data-driven operations will prove critical to success in manufacturing over the next 12 months. 80% of manufacturers agree that technology is important in driving growth, and one of the biggest changes we’ve seen year-on-year is the maturity of digital transformation strategies.

98% of discrete and process manufacturers now have some form of digital transformation roadmap—an 8% increase on last year. More than half have an advanced strategy, meaning they’ve either completed digital transformation projects, or they’re able to gather data automatically and use analytics for business insight.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

Cloud Software Linked to Higher Revenue

It’s not just software investment that is driving digital transformation. The type of implementation is also impacting how technology supports manufacturing growth.

89% of process and industrial manufacturers are either investigating or moving to the cloud, or they’re in the cloud already. Meanwhile, 34% say cloud applications will be their company’s most important investment over the next five years.

We can already see a significant difference between the performance of manufacturers using cloud-based software and those using on-premise solutions. Cloud ERP users increased their annual revenue by 8.3% on average last year, compared to a 5.5% increase among manufacturers that haven’t yet moved to the cloud.

Manufacturers using industry-specific software are also better placed to drive growth. 42% of industrial and process manufacturers are using some form of specialist technology, with tailored solutions consistently delivering better results.

For example, manufacturers using an industry-specific ERP system increased their revenue by 6.6% on average over 12 months—compared to a 6.1% increase among manufacturers using a horizontal solution (and a 3.8% increase among those without ERP software). Avg. Revenue Growth, 2020-2021 (%) - Discrete

2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

What Does This Mean?

Digital transformation is no longer a question of “why” but “how.” How can manufacturers use automation to increase revenue in 2023?

As our research shows, cloud-based software can prove a real growth differentiator, for many reasons. A cloud environment is more flexible when changes need to be made to the number of solutions, users, system permissions and other backend options. This makes it simpler (and more cost-effective) to scale up, particularly if all manufacturing software is sourced from a single vendor.

Cloud software also supports a cohesive digital transformation strategy as manufacturers invest in bestof-breed software. A third (34%) of industrial and process manufacturers told us that complex systems integrations will be the biggest barrier to meeting their 2023 goals. Cloud connectivity solves this problem. Industry-specific software also makes a tangible difference because the vendor is an expert knowledge source. They know the manufacturing industry inside and out, and can help organizations to implement solutions that work on the shop floor and adapt to their individual workflows. Plus, with a single vendor approach, only one point of contact is needed to get the job done.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America | Whitepaper

Trend #2: Addressing Supply Chain Woes

External disruption has been deeply felt in recent years, and manufacturers know that material price increases and availability will continue to impact trading in 2023.

Efficient supply chain management could prove critical to driving revenue over the next 12 months, and many companies have already invested in improving supplier costs and control.

For example, 42% of the industrial and process manufacturers we surveyed have implemented technology to improve supply chain visibility, and a further 43% plan to follow their lead in 2023. Meanwhile, 43% plan to add more suppliers to their portfolio, and 36% want to increase nearshore sourcing.

Manufacturers are also looking at other ways to “buy smart:” for example, 48% have invested in inventory management technology, with a further 36% planning to digitize their inventory management processes over the next 12 months.

Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

What Does This Mean?

As material costs rise and availability continues to fluctuate, manufacturers need a complete, real-time operational view of their requirements to sense market changes and source materials at the best prices. As the saying goes, knowledge is power.

The major challenge is building trust in this information. Only 60% of industrial and process manufacturers are confident in the accuracy of their supplier insights. Digital transformation via the cloud will empower manufacturing companies to extract more reliable information and integrate data from multiple systems to make faster, more profitable decisions in 2023.

For example, manufacturers with an ERP system can automatically generate a bill of materials (BOM) and requests for quotation (RFQs) at the moment a sales order is confirmed, and automatically push information to suppliers if their ERP is integrated with Electronic Data Interchange (EDI) software. This gives them more time to negotiate costs, without compromising on customer deadlines.

When Hammond Group implemented Aptean Process Manufacturing ERP to evaluate suppliers, compare vendors and automate production operations, its IT costs decreased by 39% in the first year of operation.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America | Whitepaper

Trend #3: Controlling the Cost of Doing Business

Rising material prices are just one cost increase that manufacturers will face in 2023. Inflation is causing soaring energy prices, while labor shortages are driving demand for higher wages, pushing up the cost of doing business.

In light of this, it’s no surprise that improving operational efficiency is top of manufacturers’ priority lists for the next 12 months.

As organizations look to do more with less, 89% say technology will be important to help them work more efficiently—and a third of the manufacturers have already invested in new software to manage rising costs.

For example, The Metalworking Group has increased on-time delivery rates from 75-86% by improving shopfloor visibility and efficiency using Aptean Industrial Manufacturing ERP.

There are many other ways in which digital transformation can control the cost of doing business. One key theme that emerged from our research is improving quality control to reduce waste.

A third of manufacturers admit their compliance management processes are still completely or mostly manual. 86% want to address this by making traceability improvements during 2023, while 84% of manufacturers want to automate quality checks.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

What Does This Mean?

In order to future-proof your business, it’s critical to have the right technology in place to run an efficient operation. Manufacturing solutions can deliver significant day-to-day savings, for example:

› ERP software automates workflows and checks to drive consistent output, improve quality control and maximize shop floor productivity. Pharmaceutical manufacturer Vita Health Products has used Aptean Industrial Manufacturing ERP to increase sales by 16% year-on-year while keeping inventory investment relatively flat.

› Electronic Data Interchange (EDI) securely and easily communicates data electronically from system to system, keeping every aspect of supply chain operations visible for smart decision-making.

› Business Intelligence (BI) software analyzes data generated by ERP systems and other manufacturing software to produce valuable reports, revealing opportunities to improve efficiency and profitability.

› Enterprise Asset Management (EAM) software reduces machinery failures and unscheduled downtime to increase production output. Steel components manufacturer Anderson Dahlen even used data from Aptean’s EAM solution to create a business case for expanding its maintenance team, removing the company’s reliance on expensive contractors.

› Overall Equipment Effectiveness (OEE) and Manufacturing Execution Systems (MES) solutions streamline production processes with a strong focus on production monitoring and optimization.

› Routing & Scheduling software optimizes delivery routes to get products

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

Vendor Selection is Critical to Operational Efficiency

As automation levels increase, it’s important that manufacturers choose software that is reliable and easy to manage. Otherwise, the time, resources and budget needed to maintain digital operations will increase the cost of doing business.

Vendor selection is critical to operational efficiency. To run profitably in 2023, manufacturers will need to look for a technology partner that can deploy, update and optimize all their system components, monitoring them in real-time to protect their business from security threats and unplanned downtime.

Working with a single vendor can be advantageous to digital transformation strategies, as there’s a single point of contact and you can feel confident that multiple solutions will work together. If that vendor provides industry-specific software then they can also offer deep manufacturing knowledge; they know the challenges companies are facing and have created solutions with the functionality needed to solve them.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America | Whitepaper

Trend #4: Technology is Helping to Solve the Labor Crisis

2022 was a difficult year for recruiting and retaining skilled workers. This has forced manufacturers to think outside the box in order to build a robust workforce for 2023.

47% of manufacturing companies have turned to their existing workforce for support, upskilling current employees to increase their value. 50% of manufacturers are automating more tasks, while a further 36% plan to increase automation in the next six months.

Most industrial and process manufacturers agree that technology will play an important role in addressing labor shortages. 86% say tech will help them retain their current workforce—for example, by automating repetitive, lower value tasks so their teams can focus on high value work.

Technology can also improve the overall speed and efficiency of manufacturing operations so that employees aren’t impaired by unreliable systems, complex processes and poor communication.

In addition, some manufacturers are restructuring their operational set-up through digital transformation. 41% have introduced more remote and hybrid roles and 38% have restructured their working day or week to attract employees looking for flexible opportunities.

What Does This Mean?

With skilled workers in short supply, astute manufacturers are using technology to maintain production and focus recruitment on skilled roles.

Intuitive systems will help manufacturers to attract digitally savvy workers. As experienced personnel retire, they are replaced by fresh talent that expects tech-driven processes to help them get to grips with their role quickly.

2023’s challenge will be identifying which operational software will deliver a superior user experience and enhance productivity, and how it can be deployed for an increasingly flexible workforce.

Cloud connectivity will play an essential role in building hybrid manufacturing businesses over the next 12 months. Through the cloud, employees have access to vital systems and accurate data on the plant floor, in the field and at home via desktop application or web browser.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

Recap: Key Manufacturing Insights for The Year Ahead

2023: The Year of “Always Agile”

2022 was a year of progress: manufacturers invested in the digital infrastructure needed to adapt to constant change.

In 2023, the main objective for process and industrial manufacturers will be developing your digital transformation strategy to be “always agile.”

Rapid data insights and automated capabilities are your key to solving challenges, unlocking efficiencies, making smart resourcing choices and driving profitability in fluctuating conditions.

Many industry leaders are already yielding these benefits through digital transformation. To stay competitive, organizations need to invest in solutions that provide both immediate and long-term value.

Our research has proven that industry-specific cloud software delivers the best results. If you take one action point away from this report, it’s to book an appointment with a manufacturing technology specialist like Aptean.

Aptean understands the needs of manufacturers. Our industrial and process manufacturing solutions will help you to build an agile, scalable operational platform for a rapidly modernizing industry.

We’ll help you to easily deploy, integrate and manage new solutions to enhance your digital transformation strategy. This way, you focus less on software implementation, and more on driving value throughout 2023 and beyond.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America |

Accelerate Your Digital Transformation with Aptean’s Cloud-Based Manufacturing Solutions

Aptean ERP: Aptean provides industry-specific ERP software to help process and industrial manufacturers be Ready For What’s Next, Now®. Our manufacturing ERP solutions include specialist features for formula management, BOM calculations, dynamic scheduling and margin analysis so manufacturing companies can focus on your most valuable products and customers.

Aptean EDI: our EDI software works seamlessly with Aptean ERP solutions, streamlining and automating your data transfers. Using a single vendor removes integration complexities and frees up your team to focus on more important activities.

Aptean EAM: our EAM/CMMS software makes it simpler to plan, manage, optimize and execute the required maintenance of all assets across your operation. Use Aptean EAM to reduce unplanned downtime, improve asset productivity and control maintenance costs.

Aptean OEE: our OEE solution enables you to maximize productivity, quality, reliability of your production lines. It has the measurement, analysis and simulation capabilities you need to plan better and react sooner. Use Aptean Process Manufacturing OEE software to automatically monitor and record your OEE value for a full picture of how effectively your production is running and to create a cycle of continuous improvement.

Aptean Routing & Scheduling: our advanced route planning, scheduling and tracking solution is proven to reduce costs, increase efficiencies and improve customer service. Whether you have a single depot, multiple depots, same day or multi-day routes, Aptean Routing & Scheduling software can help you reduce transportation costs by up to 30%.

Aptean 2023 Manufacturing Forecast: Industry Insights From Industrial and Process Manufacturers, North America

Aptean: Ready for What’s Next, Now®

About Aptean

Aptean is one of the world’s leading providers of purpose-built, industry-specific software that helps manufacturers and distributors effectively run and grow their businesses. With both cloud and on-premise deployment options, Aptean’s products, services and unmatched expertise help businesses of all sizes to be Ready for What’s Next, Now®. Aptean is headquartered in Alpharetta, Georgia and has offices in North America, Europe and Asia-Pacific.

To learn more about Aptean and the markets we serve, visit www.aptean.com.

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