News Feature | August 26, 2015

Sikich Survey: How Your Manufacturer IT Clients Can Leverage Technology

Christine Kern

By Christine Kern, contributing writer

Sikich Survey: How Your Manufacturer IT Clients Can Leverage Technology

A majority of manufacturers and distributors fail to either implement or leverage important technological advancements, according to a new survey from professional services firm Sikich LLP. The 2015 Manufacturing Report examines industry trends as well as the strategic and economic issues manufacturers and distributors face today, and highlights how manufacturers and distributors can overcome current challenges to organic growth and gain an edge in today’s economy.

According to the report, while manufacturers remain optimistic about the U.S. economy, a majority fail to take full advantage of the important technological advancements that can help them capitalize on the recovery. The findings revealed that technology remains a major challenge for industry.

Sikich surveyed 116 manufacturers and distributors for the report and found 53 percent of respondents still rely on spreadsheets and other manual processes to prepare key performance indicators (KPIs) such as productivity, utilization, and availability. In addition, only 26 percent reported using a financial application module such as an enterprise resource planning (ERP) system for KPIs.

In terms of improving customer service and supporting business growth, however, companies score better with technology, according to the survey. The top ways respondents said they use technology is to improve manufacturing processes and business intelligence and reporting.

And while many in the manufacturing industry remain cautiously optimistic about the future, they also face additional challenges that include the need to both cut costs and make needed capital investments in equipment and technology. More than 90 percent of respondents expect taxation and labor costs to either increase or remain the same in the next 12 months, while 86 percent said the same about the cost of raw materials. Meanwhile, 32 percent plan capital expenditures on equipment while 42 percent expect to spend on computer hardware and software.