By Randy Lagomarsino, City National Bank
Big data and technology are changing our world, from consumer products such as smart home appliances to business applications like marketing automation. In a study conducted by Honeywell, nearly half of manufacturers agree that implementing and using data analytics is no longer optional. Big data analytics is helping manufacturers significantly reduce downtime, gain greater operational insights, and improve supply chain efficiencies.
Unfortunately, not all manufacturers are staying current with this technology. A 2019 study done by MA says 56% of companies currently have no plan to map a strategy that incorporates data and technologies in their business model. Here’s how we see manufacturers adopting technology and data to become a Factory of the Future:
Identify objectives early
The main barrier to acquiring efficient technologies in manufacturing is cost, according to a 2018 survey from McKinsey and Company. So, manufacturing companies are evaluating what is most important to them: reducing costs immediately, improved quality of output or increased productivity. When there is a better understanding of the end goal, it can help define a clearer path forward.
Break it down into incremental steps Adopting technology is an ongoing process for manufacturing companies. By identifying the most critical areas to focus on and building it out in phases makes this adoption manageable not only for processes but bottom lines.
Consider the alternatives
Manufacturing companies are operating “business as usual” and delaying their adoption. This decision brings other concerns with security and external threats. Manufacturing is the third most-attacked sector for cyber behind government and finance. While it may seem harmless to not evolve technologies, it could have a larger impact down the road.
About the Author:
Randy Lagomarsino is a Senior Relationship Manager with City National Bank, working with medium to large revenue clients. Randy can be reached at 408-734-6568 or email@example.com. First American Equipment Finance, An RBC / City National Company, has a dedicated team waiting to provide clients with better financing solutions for manufacturing and distribution equipment. First American and City National work together to offer innovative financing solutions for equipment acquisitions.