Manufacturing CIOs are struggling to adopt AI, automation: Report

While it is imperative for companies across sectors to have a robust data management strategy, a recent research report sheds light on the manufacturing industry’s woes with various data issues. The survey conducted by Forrester Consulting and commissioned by technology firm Hexagon emphasizes that unresolved data challenges are posing a significant threat to innovation and hindering the adoption of advanced manufacturing technologies, according to 98% manufacturing chief information officers (CIOs).

The report sheds light on trends, challenges, successes, and opportunities faced by manufacturing leaders throughout their value chain. Business leaders recognise that better collaboration can enhance product quality (88%) and time-to-market (86%). Moreover, 82% of respondents believe that improved communication between design and manufacturing teams can significantly reduce material waste and emissions.

Despite this, almost three-quarters (71%) of business leaders express concerns about the lack of synergy between their design and manufacturing teams. Ineffective sharing of data and insights between teams is a common challenge, with 42% of respondents expressing concerns in this area.

Data availability and quality are also identified as critical pain points. Collaboration and employee productivity are significant challenges for 97% of manufacturers, impacting their ability to innovate and respond promptly to customer needs.

The report further points out that data availability and quality challenges are impeding the widespread adoption of advanced technologies like digital twins, automation, and artificial intelligence (AI) in manufacturing. These challenges exacerbate issues related to workplace collaboration, affecting overall productivity and time to market. The report highlights almost half of manufacturers as "automation laggards," at risk of being overtaken by competitors prioritising data-driven productivity and automation.

The report also reveals fundamental shifts in how high-value products are designed and manufactured, highlighting three key digital enablers: data quality and availability, workforce collaboration and empowerment, and automation.

For example, the impact of data challenges on collaboration and productivity is high, with 97% of manufacturers facing difficulties. Improved collaboration is recognised as a potential remedy, offering benefits such as enhanced product quality (88%), reduced time to market (86%), and improved sustainability through reduced material waste and emissions (82%).

"It's ironic that manufacturing invented the automation and agile practices that are driving business transformation in other industries and is now struggling to transform – but that's because achieving digitalisation throughout manufacturing value chains is a very real, complex, and human challenge,” said Josh Weiss, President of Hexagon's Manufacturing Intelligence division.

"Those that empower their organisation to use data right now can drive more efficient value creation and get products to market faster with the agility to adapt to market conditions. We saw it when consumer electronics led the shift to rapid product innovation, and now BYD has shaken the automotive sector by overtaking Tesla as the electric vehicle market leader, emphasising the need to transform productivity and innovation throughout the manufacturing value chain,” said Weiss.

Only 2% of manufacturing CIOs claim to be problem-free with their data practices, signalling a widespread risk of missing business goals. The report categorises 37% of manufacturers as "laggards" who falling behind in automation efforts, while 25% are identified as "leaders" that have highly or fully automated at least two phases of their manufacturing processes.

While high-quality data access is a universal challenge, Asian manufacturers display more confidence in applying their data, leveraging simulation, virtual manufacturing and predictive maintenance. The study also reveals that 58% of Asian companies plan to invest in AI-powered automation over the next three years, outpacing counterparts in North America (45%) and EMEA (38%).

That said, CIOs believe manufacturers that fail to get their data in order risk being left behind their rivals.