U.S. manufacturers are making solid headway on digitalization to make operations more efficient, sustainable, and resilient. New high-tech factories generate a lot of excitement and often steal the headlines, but most manufacturing leaders can relate better to the less flashy story of bringing digitalization to legacy operations at older facilities. Here, machines and processes are undergoing the gradual but important shift into the digital age.
Manufacturers Alliance Foundation surveyed around 200 U.S.-based manufacturing companies and spoke one-on-one with manufacturing leaders about successful strategies for legacy operations. A Guide for Faster Evolution is a follow up of Digitalization Gains, an assessment of manufacturers’ progress towards digital transformation.
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While funding, security, and talent represented significant concerns, interoperability and complexity stood out as the thorniest problems manufacturers face as they advance on their digitalization and artificial intelligence journeys. Here, the best solution may not require a rip-and-replace approach but rather bridging technologies that allow manufacturers to get more out of their still-functioning legacy machines and operations. “It quickly becomes a larger conversation about how you’re managing the lifecycle of your equipment,” added Philip Vita, Technical Director at Procter & Gamble, “digital capability is just another factor in the overall decision.”
Top Concerns About Technology Upgrades
- Budget constraints hindering timely upgrades
- Balancing security concerns with the need for technological advancements
- Limited availability of skilled workforce for emerging technologies
- Concerns about compatibility of existing systems with new technologies
- Managing the complexity of integrating diverse technologies
Source: Manufacturers Alliance Foundation study, 2024.
The good news — it’s not an all-or-nothing choice. The most advanced digitalization and AI tools can provide that bridge so many companies need while embracing new approaches to partnerships, customers, and ecosystems. Most (55%) are investing in continuous improvements with ongoing upgrades, and only a minority, 21%, are doing major periodic overhauls.
