83% of firms will increase spending “on operational excellence initiatives in 2023,” according to an update from Verdantix.
AI [artificial intelligence] and machine learning are “increasingly being used by industrial firms to maximise data utility.”
The report from Verdantix also mentioned that “the global skills shortage combined with an ageing workforce and more workers retiring is accelerating digitization of plant operations in the industrial sector.”
A new report from independent research and advisory firm Verdantix was prepared by interviewing 301 senior executives in North America, Europe, South America, and other world regions. They professional are “responsible for operational excellence initiatives at firms with revenues of at least $250 million.”
Some 86% of survey respondents “say a shortage of skilled workers is a significant or very significant factor driving increased digitisiation while 85% point to an ageing workforce as important factors.”
More than four out of five (83%) “say they plan to increase spending on operational excellence initiatives during 2023 with around half (42%) expecting to increase spending by 10% or more during the year.”
The report Global Corporate Survey 2022: Operational Excellence Budgets, Priorities & Tech Preferences “says macroeconomic factors are having an impact on spending – 89% of respondents said cost-cutting is a significant or very significant influence on digitization.”
Mobile apps, enterprise asset management and asset performance management software help boost efficiency and downtime on machinery.”
The sector is “benefiting from new technology such as AI and machine learning – 87% of respondents say new technologies are enhancing data management at industrial firms particularly from devices such as wearable technology.” They can also “upload real-time locations data, detect toxic gases or high temperatures and sense abnormal behavior.”
Key ESG priorities in the operational excellence sector “include sourcing green electricity – 50% rate it as a high priority ahead of replacing ageing equipment and cutting emissions and energy consumption.”
Joe Lamming, Industry Analyst at Verdantix said:
“Labor shortages have gripped industrial firms worldwide since the COVID-19 pandemic subsided and put even greater pressure on heavy industry to explore digital solutions. Expanding data acquisition, establishing robust data management processes and driving advanced analytics will help get the best hands, eyes and ears on-site at the right time. Successful industrial software vendors will offer scalable, self-service solutions to key pain points where data management and integration with existing systems is prioritised”
As noted in the update, Verdantix reportedly “interviewed 301 senior executives from across the globe who are “responsible for operational excellence initiatives at firms with revenues of at least $250 million of which 27% had revenues of over $20 billion.”
Interviews were “conducted between August and October 2022.”
As mentioned in the announcement, Verdantix is “an independent research and advisory firm with expertise in digital strategies for Environment, Health & Safety, ESG & Sustainability, Net Zero & Climate Risk, Operational Excellence and Smart Buildings.”
The company is based in London and has offices in New York and Boston. It has “achieved rapid growth due to the firm’s focus on providing high quality independent research about the applicability of digital technology to some of the world’s most significant problems.”