Roughly two-thirds of manufacturing executives think that the IoT will increase their profitability over the next five years. Unfortunately, only one in 10 of these leaders have actually implemented an IoT strategy.
Cleveland, OHIO (PRWEB) January 29, 2016
According to a new study, U.S. manufacturing executives have big hopes for the Internet of Things (IoT) — but a limited understanding of the IoT, or how to apply it to their businesses.
That’s a huge problem for their companies and for the U.S. economy — because using the IoT wisely is a key strategic initiative for manufacturers around the globe.
“Roughly two-thirds of manufacturing executives think that the IoT will increase their profitability over the next five years,” says John R. Brandt, CEO of The MPI Group, which conducted the study. “Unfortunately, only one in 10 of these leaders have actually implemented an IoT strategy.”
This IoT gap, says Brandt, could limit growth opportunities for U.S. manufacturers over the next decade.
MPI’s Internet of Things Study evaluated the readiness of U.S. manufacturers to incorporate smart devices and embedded intelligence within their plants and into their companies' products. Key findings include both good news and bad:
- 76% of manufacturers will increase the use of smart devices or embedded intelligence in production processes within the next two years. Shipping, warehousing, and document management are the best opportunities.
- 66% of manufacturers plan to increase their investments in IoT-enabled products within the next two years.
- Roughly 50% of manufacturers will require significant information technology upgrades or network overhauls to use the IoT within their facilities.
- 44% of manufacturers say that their biggest obstacle in leveraging the IoT is their company’s limited understanding of how the IoT can improve operations and products.
“The IoT offers unprecedented opportunities for manufacturers to boost productivity, customer satisfaction, and profitability,” says Brandt, “But many companies are already falling behind. There’s a digital divide in manufacturing between IoT haves and have-nots — and it’s growing larger every day.”
About the Study
The MPI Internet of Things Study was conducted by The MPI Group, and sponsored by Rockwell Automation, QAD, and BDO. In August and September 2015, 350 manufacturers participated in the study. Read the executive summary, The Internet of Things Has Finally Arrived (Unfortunately, Manufacturers Aren't Ready) at The MPI Group's website.
About The MPI Group
The MPI Group (MPI) serves leaders with research, advice, and performance-targeted solutions that provide a competitive advantage in today’s fierce marketplace. MPI combines the disciplines of research, strategic advice, knowledge development, and hands-on leadership to create a difference — in performance, in profits, and in the people who make them possible.
In addition to the MPI Internet of Things Study, MPI has conducted the MPI Manufacturing Study for more than a decade — benchmarking research focused on manufacturing plant performances and best practices. MPI also conducts the Next Generation Manufacturing Study, an assessment of companywide capabilities to compete in the next decade, as well as myriad studies for clients on varied topics within numerous industries.
In February 2016, MPI will release a full report on the MPI Internet of Things Study. The in-depth report will examine all study findings in greater detail, including key cross-tabulations (e.g., comparisons of small-revenue companies vs. large-revenue companies), as well as ways in which the IoT will impact business going forward. MPI CEO John Brandt offers presentations on the IoT study data, via webinars and in-person events. To learn more about the MPI Internet of Things Study Report, schedule an IoT presentation, or to find out more about other research conducted by MPI, contact:
The MPI Group