According to the 2021 Digital Transformation Assessment conducted by The Manufacturer and IBM, 67% of manufacturers have accelerated their adoption of digital technologies as a result of the coronavirus pandemic. Only 16% have suspended their digital adoption projects.
Why are manufacturers adopting digital technologies?
Many manufacturers have seen there is a connection between digital adoption and increased productivity, and efficiency. The 2020 Digital Transformation Assessment found that 92% of manufacturers reported that improving their ‘operational efficiencies’ was their number one business imperative. This demonstrates that manufacturers want to adopt digital technologies to become more efficient enabling future growth.
Manufacturers also want to free workers from repetitive tedious tasks so they can work on tasks that will add value to their business. This can lead to boosting staff morale as it is likely they will enjoy their work much more if repetitive tedious tasks are reduced or removed from their working day and because their job would become more interesting and rewarding.
Research has found that manufacturers are focusing on digital adoption in four main areas, these include:
- IT and/or data systems
- Product and/or customer growth
- Efficiency improvements
What challenges are manufacturers facing when adopting new technologies?
The research found that manufacturers are facing a number of challenges when adopting digital technologies. These include:
- Time and resourcing
- Securing internal funding
- Organisational culture
Respondents cited that finding the correct stakeholders or investors can be difficult, especially those from overseas with the current international travel restrictions. Furthermore, respondents found that rolling out pilot projects successfully across the whole business has its difficulties.
How can we help?
At Hawsons we have a dedicated team of manufacturing accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by manufacturing businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.
More from our manufacturing experts
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If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
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