2023 Manufacturing Forecast: 4 Insights That Will Shape Your Growth Strategy

Manufacturers are hitting the ground running in 2023. New research announced by Aptean has found that 76% of North American discrete and process manufacturers think their revenue will increase this year—and company growth is their number one goal.

How will they achieve this growth? What obstacles might they need to navigate along the way?

We’ve answered these questions in our new report, The Aptean 2023 Manufacturing Forecast: Industry Insights from Industrial and Process Manufacturers.

Here are four important insights from the research that may influence your business growth strategy:

Insight #1: Digital Transformation via the Cloud Will Drive Change

Digital Transformation (DX) is no longer a question of “why should we do this” but “how should we do this.”

Of the 250 North American discrete and process manufacturers Aptean surveyed, 98% have developed a digital transformation roadmap. Meanwhile, 80% believe technology will be instrumental in helping them to achieve business growth this year.

With almost every manufacturer now recognizing the value of digital transformation, choice of technology will be a key differentiator in 2023. For example, our research found that manufacturing companies using cloud ERP software increased their annual revenue by 8.3% on average last year, compared to 5.5% among manufacturers that haven’t yet moved to the cloud.

Manufacturers choosing sector-specific technologies are also more likely to increase revenue than companies choosing generic software. Organizations using an industry-specific ERP system increased their revenue by 6.6% on average last year, compared to a 6.1% increase among manufacturers using a horizontal solution.

Insight #2: Supply Chain Improvement Is a Top Priority

It’s a turbulent time for manufacturing supply chains. However, rather than waiting for the storm to pass, manufacturers are investing in technology to manage the impact of fluctuating costs and material availability.

Our research found that 48% of process and industrial manufacturers have already purchased software to improve inventory management. Meanwhile, 42% have invested in technology to enhance their supply chain visibility.

Improving supply chain visibility and traceability will empower manufacturing companies to enhance supplier relationships and make smart sourcing decisions in 2023.

Insight #3: As Costs Go Up, Inefficiencies Must Come Down

While manufacturers are confident of revenue gains in 2023, they’re also feeling the impact of increasing operational costs. Improving efficiency will be a major focus this year, as companies look to achieve business growth with lower spend and less waste.

Digital transformation will play a pivotal role in increasing production efficiency. 89% of manufacturers plan to use technology to manage the rising cost of doing business, and a third have already invested in operational software.

Two critical elements for improving efficiency in 2023 will be traceability and quality control. For example, 84% of manufacturers plan to automate quality checks, so they can enhance consistency and compliance without increasing people’s workload.

Insight #4: Automation Will Help to Solve the Labor Crisis

It’s been a challenging 12 months for manufacturing recruitment. While labor shortages are unlikely to disappear in 2023, manufacturers are looking at ways to dilute the impact of staff and skills shortages.

Digital transformation will contribute to solving manufacturing’s labor crisis. 86% of the organizations we surveyed say technology will help them to retain their current workforce, avoiding further recruitment.

Meanwhile, manufacturers with skills gaps to fill believe automation provides an alternative route to replacing people like-for-like. 50% of companies are already automating more tasks to reduce their reliance on people power, and a further third (36%) plan to increase automation in the next six months.

What Do These Insights Mean for Your Manufacturing Growth Strategy?

Real-world feedback is a great way to benchmark your performance and contextualize your goals. But how can you ensure our findings help your business drive growth this year?

Download your free copy of Aptean’s 2023 manufacturing forecast to read key learnings that will help you to solve challenges, unlock efficiencies and make smart decisions.

Plus, our research has proven that industry-specific cloud software delivers the most transformative results in terms of revenue growth. Why not ask one of our experts about Aptean’s industrial manufacturing ERP and process manufacturing ERP solutions?

Our manufacturing solutions will help you to build an agile, scalable operational platform that meets the demands of manufacturing in 2023 and beyond.

Get in touch to find out more about Aptean’s manufacturing ERP solutions, or request a demo today.