1

State of Manufacturing Technology – 2016

2

Overview

Annual manufacturing industry survey

3

Participant Profiles

• Nearly 200 companies

• Seven primary industries

• Global presence

4

Manufacturing Trends

5

Manufacturing GrowthQ: How much has your revenue changed over the last five years?

53%

18%

10%

8%

12%

Increased by 0-20%

Increased by 21-50%

Increased by 51-100%

Increased by more than 100%

Revenue has declined

88%Increased revenue in the last five years

46%Technology had an effect on growth

6

Growth of Connected Manufacturing

1. Technology must align with the workforce.

2. Industrial Internet of Things (IIoT) connects the manufacturing environment.

3. Big data starts on the plant floor.

4. Consumer mobility is influencing industry-specific solutions.

5. Cloud is the catalyst for manufacturers to leverage mobility, big data, and IIoT.

7

Technology Investment

• Quality

• Smart, connected tools

• Production planning

• Lean

• Inventory management

Q: Where do you plan to make your next investment in technologies for manufacturing operations?

Inventory management; 12%

Lean Manufacturing; 16%

Production planning; 16%

Quality management; 19%

Smart/connected tools and

equipment; 18%

8

Shortage of skilled workers

Lower-cost competitors

Weak demand among U.S. customers

Shortage of capital

Weak demand outside the U.S.

Inability to take advantage of new technology

New competitors

Regulation

0% 5% 10% 15% 20% 25% 30%

28%

22%

17%

9%

9%

5%

4%

3%

Workforce Trends

• Manufacturing is changing

• Skillset demands are changing

Q: What do you see as the biggest obstacle to your company’s growth next year?

9

Lean manufacturing

Data analysis

Mechanical engineering

Software engineering

Design

Electrical engineering

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

38%

22%

21%

6%

5%

3%

High-Demand Skills Align to Modern Technology

• Engineering

• Lean knowledge

• Data skills

Q: What skills are most important for the next-generation of employees?

10

Big Data

Dashboards and Reports

True Data Insight

11

Lean manufacturing

Data analysis

Mechanical engineering

Software engineering

Design

Electrical engineering

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

38%

22%

21%

6%

5%

3%

Big Data Planning

Nearly 40% of those surveyed are evaluating, planning or have implemented big data initiatives

Q: What skills are most important for the next-generation of employees?

12

IIoT Connectivity

• Smart manufacturing/IIoT listed as a key factor in near-term growth

• Manufacturers are on the cutting-edge of modern technologies

• Modern technologies drive high data capture

Q: What connected devices do you employ in your manufacturing operations today?

Hand s

cann

ers

Consu

mer m

obile

devic

es (e

.g., p

hone

, table

t)

Senso

rs

IP-e

nable

d too

ls an

d mac

hines

Low-p

ower

Blue

tooth

devic

es

Quality

scan

ners

Smart th

ermos

tats o

r ligh

ting c

ontro

ls0%

10%20%30%40%50%60%70%80%90%

100% 94%

79%

50% 46%37% 32%

24%

13

Technology Evolution

Tools that make manufacturers more efficient and more connected

Q: What emerging technologies and processes do you employ in your manufacturing operations today?

Consumer tablets

Robotics

Webcams

3D printers/additive manufacturing

Other (please specify)

Autonomous vehicles in-plant (e.g. self-driving forklifts)

Smart watches (e.g., Apple Watch)

iBeacons

Drones

Smart glasses (e.g., Google Glass)

Autonomous vehicles on-road (e.g. self-driving cars or trucks)

0% 10% 20% 30% 40% 50% 60% 70%

64%

57%

38%

26%

4%

4%

2%

1%

1%

1%

1%

14

Polamer Precision

15

Consumer Mobile Changing Manufacturing Connectivity

• System access, untethered workers, more efficient and faster decisions

• Consumer device usage growing 20% per year

Q: What devices and platforms does your company currently provide to employees today?

Windows laptop or computer

Apple devices

Android devices

Windows devices

Apple laptop or computer

Blackberry devices

Linux laptop or computer

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

90%

70%

56%

54%

14%

7%

7%

16

Mobile Technology will Continue Evolving to Serve Manufacturing

17

Cloud Manages New Business Demands

VS.

Today’s Business ModelYesterday’s Business Model

End of Month Summary Reporting

Steady Demand Signal

Long Lead Times

Standard Products

Stable Set of Suppliers

Lots of Real-time Data, Access Anytime

Variable Demand Signal

Compressed Lead Times

Short Product Lifecycles

Reconfigurable, Global Supply Chains

18

Cloud Drives Connectivity

Critical capabilities delivery by cloud

1. Connectivity to systems, machines, suppliers, customers

2. Continuous innovation

3. Common data model

4. Access to the customer community

5. End-to-end solution

6. Lower cost IT resource requirements

19

96%Reduction in inventory

discrepancies

Green Flash Brewing

I don’t have to deal with the headache of having a big IT system in-house. It allows us to focus on what we do best.”Steve Goodger, Chief Financial Officer at Green Flash, Green Flash Brewing

Inventory accuracy

99.7%

20

FloraCraft – 2014 Walmart Supplier of the Year

“We only have two IT folks at FloraCraft so not having to manage additional servers and software is a real bonus for us.”Increase in revenue with 0%

increase in labor hours

60%

Helping leadership make better and faster decisions about product investment

Right-time Data

21

The Road Ahead

IIoTCloud

Big Data

MobilityWorkforce Evolution

Connected Manufacturing

22

Access to the Report

For more details, download the full report today.

2016 Plex State of Manufacturing Technology Report