• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Digital Manufacturing Tech Can Bring 'Significant Cost Savings, Generate Revenue'

Digital Manufacturing Tech Can Bring 'Significant Cost Savings, Generate Revenue'

May 27, 2016
PwC

At the same time, adoption of these technologies are forcing manufacturers on paths to fundamentally transform their business models—and cultures—as a result. As adoption rates of digital manufacturing technologies cross the threshold to mainstream, PwC’s latest survey uncovers how businesses are wading into an era of true re-invention.

Key U.S. findings from the Manufacturing’s next big act: Building an industrial digital ecosystem report include:

• Manufacturers are raising investment in digital technologies: In the last two years, U.S. manufacturers invested an average of 2.6 percent of their annual revenue in digital technologies, and according to the PwC/Strategy& survey, the investment is expected to increase to almost 5 percent of revenue in the next five years, an estimated $350bn.

o Venture capital firms are also investing in the digital operations technology space, with $3.6bn was poured into start-ups since 2011, according the PwC/NVCA MoneyTree Report, with data from Thomson Reuters. This reflects an increase of nearly 50 percent annually, with start-up investments focused on manufacturing software, ERP and inventory software, and robotics and sensor technology.

o Companies are also considering acquisition of organizations with digital capabilities. PwC/Strategy& analysis shows that more than $6bn has been invested in “digital deals” in North America since 2012, comprising 15 percent of all M&A deals over that period.

• Manufacturers expect digital investments to lower costs and generate new revenue: Nearly two-thirds of those surveyed expect that adopting digital manufacturing technologies will lower operating costs by at least 11 percent, mostly through efficiencies gained by automating processes and production.

o Over half of these manufacturers also expect to boost revenues by at least 11 percent by their digital ecosystem development enabling “smart” production, and new products and business models such as “pay-as-you-go.”

o However, not all digital technologies will yield cost-cutting and revenue generation for all manufacturers to the same degree. Companies should take a tailored approach to calculating a “digital ROI,” depending on the nature and breadth of the company’s digital strategy.

• The greatest challenges to building a digital vision are cultural: Three of the top 10 challenges identified through the PwC/Strategy& survey relate to organizational readiness and financial concerns. Some companies anticipate high investment requirements with unclear return on investment and lack of digital standards and issues related to data security and intellectual property are also noted.

Companies who are going through or are looking to start their digital manufacturing transformation need to assess their assets continually to determine whether there is potential impact of changes to those assets by adding layers of digitalization and connectivity. And then ultimately figuring out how to monetize those changes. This initial strategy assessment informs the strategic choices that form a blueprint for an execution of a “digital evolution.”

Source: PwC

RELATED CONTENT

RELATED VIDEOS

Logistics Outsourcing Data Management (Big Data/IoT/Blockchain) Cloud & On-Demand Systems Technology High-Tech/Electronics Industrial Manufacturing
KEYWORDS Big Data/IOT Cloud, SaaS & On-Demand Systems High-Tech/Electronics Industrial Manufacturing Logistics Outsourcing Technology
  • Related Articles

    Digital Supply Chain Tech Could Drive Huge Savings for Heavy Vehicles, Study Says

    Manufacturers to Invest 5 Percent of Annual Revenue in Digital Solutions Over Next Five Years, Study Says

    3D Printing Could Bring Change, Savings to Trucking Industry

PwC

Manufacturers to Invest 5 Percent of Annual Revenue in Digital Solutions Over Next Five Years, Study Says

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A TRUCK LEAVES A PORT DOCK LOADED WITH A CONTAINER

    C.H. Robinson Digs in Against Activist Investor Ancora

    Freight Forwarding/Customs Brokerage
  • A MESSY JUMBLE OF BOXES SIT ON THE FLOOR OF A WAREHOUSE

    Supply Chain Lessons to Bring into 2023

    Forecasting & Demand Planning
  • A CONTAINER SHIP PLIES A SILVERY OCEAN

    CVC Nears Deal to Acquire Logistics Firm Scan Global

    Logistics
  • MANY COGS INTERACT TOGETHER, ONE PAINTED WITH THE FLAG OF MEXICOStock-natatravel-1261506189.jpg

    Mexico’s Industrial Hubs Grow as Part of Shift Toward Nearshoring

    Logistics

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing